(i) Local government units shall share with the national

REPUBLIC ACT NO. 7160 government the responsibility in the management and maintenance of
AN ACT PROVIDING FOR A LOCAL GOVERNMENT CODE OF ecological balance within their territorial jurisdiction, subject to the
1991 provisions of this Code and national policies;
(j) Effective mechanisms for ensuring the accountability of
local government units to their respective constituents shall be
BOOK I - General Provisions strengthened in order to upgrade continually the quality of local
leadership;
TITLE I - Basic Principles
(k) The realization of local autonomy shall be facilitated
CHAPTER I - The Code: Policy and Application
through improved coordination of national government policies and
SECTION 1. Title. – This Act shall be known and cited as the programs and extension of adequate technical and material assistance
“Local Government Code of 1991”. to less developed and deserving local government units;

SECTION 2. Declaration of Policy. – (a) It is hereby (l) The participation of the private sector in local governance,
declared the policy of the State that the territorial and political particularly in the delivery of basic services, shall be encouraged to
subdivisions of the State shall enjoy genuine and meaningful local ensure the viability of local autonomy as an alternative strategy for
autonomy to enable them to attain their fullest development as self- sustainable development; and
reliant communities and make them more effective partners in the
(m) The national government shall ensure that
attainment of national goals. Toward this end, the State shall provide for
decentralization contributes to the continuing improvement of the
a more responsive and accountable local government structure instituted
performance of local government units and the quality of community life.
through a system of decentralization whereby local government units
shall be given more powers, authority, responsibilities, and resources. SECTION 4. Scope of Application. – This Code shall apply
The process of decentralization shall proceed from the National to all provinces, cities, municipalities, barangays, and other political
Government to the local government units. subdivisions as may be created by law, and, to the extent herein
provided, to officials, offices, or agencies of the national government.
(b) It is also the policy of the State to ensure the accountability
of local government units through the institution of effective mechanisms SECTION 5. Rules of Interpretation. – In the
of recall, initiative and referendum. interpretation of the provisions of this Code, the following rules shall
apply:
(c) It is likewise the policy of the State to require all national
agencies and offices to conduct periodic consultations with appropriate (a) Any provision on a power of a local government unit shall
local government units, nongovernmental and people’s be liberally interpreted in its favor, and in case of doubt, any question
organizations, and other concerned sectors of the community before thereon shall be resolved in favor of devolution of powers and of the
any project or program is implemented in their respective lower local government unit. Any fair and reasonable doubt as to the
jurisdictions. existence of the power shall be interpreted in favor of the local
government unit concerned;
SECTION 3. Operative Principles of Decentralization. –
The formulation and implementation of policies and measures on local (b) In case of doubt, any tax ordinance or revenue measure
autonomy shall be guided by the following operative principles: shall be construed strictly against the local government unit enacting it,
and liberally in favor of the taxpayer. Any tax exemption, incentive or
(a) There shall be an effective allocation among the different
relief granted by any local government unit pursuant to the provisions of
local government units of their respective powers, functions,
this Code shall be construed strictly against the person claiming it.
responsibilities, and resources;
(c) The general welfare provisions in this Code shall be liberally
(b) There shall be established in every local government unit
interpreted to give more powers to local government units in accelerating
an accountable, efficient, and dynamic organizational structure and
economic development and upgrading the quality of life for the people
operating mechanism that will meet the priority needs and service
in the community;
requirements of its communities;
(d) Rights and obligations existing on the date of effectivity of
(c) Subject to civil service law, rules and regulations, local
this Code and arising out of contracts or any other source of prestation
officials and employees paid wholly or mainly from local funds shall be
involving a local government unit shall be governed by the original terms
appointed or removed, according to merit and fitness, by the appropriate
and conditions of said contracts or the law in force at the time such rights
appointing authority;
were vested; and
(d) The vesting of duty, responsibility, and accountability in
(e) In the resolution of controversies arising under this Code
local government units shall be accompanied with provision for
where no legal provision or jurisprudence applies, resort may be had to
reasonably adequate resources to discharge their powers and effectively
the customs and traditions in the place where the controversies take
carry out their functions; hence, they shall have the power to create and
place.
broaden their own sources of revenue and the right to a just share in
national taxes and an equitable share in the proceeds of the utilization
and development of the national wealth within their respective areas;
CHAPTER II
(e) Provinces with respect to component cities and
municipalities, and cities and municipalities with respect to component General Powers and Attributes of Local Government Units
barangays, shall ensure that the acts of their component units are within SECTION 6. Authority to Create Local Government
the scope of their prescribed powers and functions; Units. – A local government unit may be created, divided, merged,
(f) Local government units may group themselves, consolidate abolished, or its boundaries substantially altered either by law enacted
or coordinate their efforts, services, and resources for purposes by Congress in the case of a province, city, municipality, or any other
commonly beneficial to them; political subdivision, or by ordinance passed by the sangguniang
panlalawigan or sangguniang panlungsod concerned in the case of a
(g) The capabilities of local government units, especially the barangay located within its territorial jurisdiction, subject to such
municipalities and barangays, shall be enhanced by providing them with limitations and requirements prescribed in this Code.
opportunities to participate actively in the implementation of national
programs and projects; SECTION 7. Creation and Conversion. – As a general rule,
the creation of a local government unit or its conversion from one level
(h) There shall be a continuing mechanism to enhance local to another level shall be based on verifiable indicators of viability and
autonomy not only by legislative enabling acts but also by administrative projected capacity to provide services, to wit:
and organizational reforms;

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 (a) Income. – It must be sufficient, based on acceptable SECTION 12. Government Centers. – Provinces, cities,
standards, to provide for all essential government facilities and services and municipalities shall endeavor to establish a government center where
and special functions commensurate with the size of its population, as offices, agencies, or branches of the National Government, local
expected of the local government unit concerned; government units, or government-owned or -controlled corporations
may, as far as practicable, be located. In designating such a center, the
(b) Population. – It shall be determined as the total number local government unit concerned shall take into account the existing
of inhabitants within the territorial jurisdiction of the local government facilities of national and local agencies and offices which may serve as
unit concerned; and the government center as contemplated under this Section. The National
(c) Land Area. – It must be contiguous, unless it comprises Government, local government unit or government-owned or -controlled
two (2) or more islands or is separated by a local government unit corporation concerned shall bear the expenses for the construction of its
independent of the others; properly identified by metes and bounds with buildings and facilities in the government center.
technical descriptions; and sufficient to provide for such basic services SECTION 13. Naming of Local Government Units and
and facilities to meet the requirements of its populace. Public Places, Streets and Structures. – (a) The sangguniang
Compliance with the foregoing indicators shall be attested to panlalawigan may, in consultation with the Philippine Historical
by the Department of Finance (DOF), the National Statistics Office (NSO), Commission (PHC), change the name of the following within its territorial
and the Lands Management Bureau (LMB) of the Department of jurisdiction:
Environment and Natural Resources (DENR). (1) Component cities and municipalities, upon the recommendation of
SECTION 8. Division and Merger. – Division and merger of the sanggunian concerned;
existing local government units shall comply with the same requirements (2) Provincial roads, avenues, boulevards, thoroughfares, and bridges;
herein prescribed for their creation: Provided, however, That such
division shall not reduce the income, population, or land area of the local (3) Public vocational or technical schools and other post-secondary and
government unit or units concerned to less than the minimum tertiary schools;
requirements prescribed in this Code: Provided, further, That the income
classification of the original local government unit or units shall not fall (4) Provincial hospitals, health centers, and other health facilities; and
below its current income classification prior to such division. (5) Any other public place or building owned by the provincial
The income classification of local government units shall be government.
updated within six (6) months from the effectivity of this Code to reflect (b) The sanggunians of highly urbanized cities and of
the changes in their financial position resulting from the increased component cities whose charters prohibit their voters from voting for
revenues as provided herein. provincial elective officials, hereinafter referred to in this Code as
SECTION 9. Abolition of Local Government Units. – A independent component cities, may, in consultation with the Philippine
local government unit may be abolished when its income, population, or Historical Commission, change the name of the following within its
land area has been irreversibly reduced to less than the minimum territorial jurisdiction:
standards prescribed for its creation under Book III of this Code, as (1) City barangays, upon the recommendation of the sangguniang
certified by the national agencies mentioned in Section 7 hereof to barangay concerned;
Congress or to the sanggunian concerned, as the case may be.
(2) City roads, avenues, boulevards, thoroughfares, and bridges;
The law or ordinance abolishing a local government unit shall
specify the province, city, municipality, or barangay with which the local (3) Public elementary, secondary and vocational or technical schools,
government unit sought to be abolished will be incorporated or merged. community colleges and non-chartered colleges;

SECTION 10. Plebiscite Requirement. – No creation, (4) City hospitals, health centers and other health facilities; and
division, merger, abolition, or substantial alteration of boundaries of local
(5) Any other public place or building owned by the city government.
government units shall take effect unless approved by a majority of the
votes cast in a plebiscite called for the purpose in the political unit or (c) The sanggunians of component cities and municipalities
units directly affected. Said plebiscite shall be conducted by the may, in consultation with the Philippine Historical Commission, change
Commission on Elections (COMELEC) within one hundred twenty (120) the name of the following within its territorial jurisdiction:
days from the date of effectivity of the law or ordinance effecting such
action, unless said law or ordinance fixes another date. (1) City and municipal barangays, upon recommendation of the
sangguniang barangay concerned;
SECTION 11. Selection and Transfer of Local
Government Site, Offices and Facilities. – (a) The law or ordinance (2) City, municipal and barangay roads, avenues, boulevards,
creating or merging local government units shall specify the seat of thoroughfares, and bridges;
government from where governmental and corporate services shall be (3) City and municipal public elementary, secondary and vocational or
delivered. In selecting said site, factors relating to geographical technical schools, post-secondary and other tertiary schools;
centrality, accessibility, availability of transportation and communication
facilities, drainage and sanitation, development and economic progress, (4) City and municipal hospitals, health centers and other health facilities;
and other relevant considerations shall be taken into account. and
(b) When conditions and developments in the local (5) Any other public place or building owned by the municipal
government unit concerned have significantly changed subsequent to the government.
establishment of the seat of government, its sanggunian may, after
public hearing and by a vote of two-thirds (2/3) of all its members, (d) None of the foregoing local government units, institutions,
transfer the same to a site better suited to its needs. Provided, however, places, or buildings shall be named after a living person, nor may a
That no such transfer shall be made outside the territorial boundaries of change of name be made unless for a justifiable reason and, in any case,
not oftener than once every ten (10) years. The name of a local
the local government unit concerned.
government unit or a public place, street or structure with historical,
The old site, together with the improvements thereon, may be cultural, or ethnic significance shall not be changed, unless by a
disposed of by sale or lease or converted to such other use as the unanimous vote of the sanggunian concerned and in consultation with
sanggunian concerned may deem beneficial to the local government unit the PHC.
concerned and its inhabitants.
(e) A change of name of a public school shall be made only
(c) Local government offices and facilities shall not be upon the recommendation of the local school board concerned.
transferred, relocated, or converted to other uses unless public hearings
are first conducted for the purpose and the concurrence of the majority (f) A change of name of public hospitals, health centers, and
of all the members of the sanggunian concerned is obtained. other health facilities shall be made only upon the recommendation of
the local health board concerned.

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 (g) The change of name of any local government unit shall be communal forests with an area not exceeding fifty (50) square
effective only upon ratification in a plebiscite conducted for the purpose kilometers; establishment of tree parks, greenbelts, and
in the political unit directly affected. In any change of name, the Office similar forest development projects;
of the President, the representative of the legislative district concerned, (iii) Subject to the provisions of Title Five, Book I of this Code,
and the Bureau of Posts shall be notified. health services which include the implementation of programs
and projects on primary health care, maternal and child care,
SECTION 14. Beginning of Corporate Existence. – When and communicable and non-communicable disease control
a new local government unit is created, its corporate existence shall services; access to secondary and tertiary health services;
commence upon the election and qualification of its chief executive and purchase of medicines, medical supplies, and equipment
a majority of the members of its sanggunian, unless some other time is needed to carry out the services herein enumerated;
fixed therefor by the law or ordinance creating it. (iv) Social welfare services which include programs and projects
SECTION 15. Political and Corporate Nature of Local on child and youth welfare, family and community welfare,
Government Units. – Every local government unit created or women’s welfare, welfare of the elderly and disabled
recognized under this Code is a body politic and corporate endowed with persons; community-based rehabilitation programs for
powers to be exercised by it in conformity with law. As such, it shall vagrants, beggars, street children, scavengers, juvenile
exercise powers as a political subdivision of the national government and delinquents, and victims of drug abuse; livelihood and other
as a corporate entity representing the inhabitants of its territory. pro-poor projects; nutrition services; and family planning
services;
SECTION 16. General Welfare. – Every local government (v) Information services which include investments and job
unit shall exercise the powers expressly granted, those necessarily placement information systems, tax and marketing information
implied therefrom, as well as powers necessary, appropriate, or systems, and maintenance of a public library;
incidental for its efficient and effective governance, and those which are (vi) Solid waste disposal system or environmental management
essential to the promotion of the general welfare. Within their respective system and services or facilities related to general hygiene and
territorial jurisdictions, local government units shall ensure and support, sanitation;
among other things, the preservation and enrichment of culture, promote (vii) Municipal buildings, cultural centers, public parks including
health and safety, enhance the right of the people to a balanced ecology, freedom parks, playgrounds, and other sports facilities and
encourage and support the development of appropriate and self-reliant equipment, and other similar facilities;
scientific and technological capabilities, improve public morals, enhance (viii) Infrastructure facilities intended primarily to service the needs
economic prosperity and social justice, promote full employment among of the residents of the municipality and which are funded out
their residents, maintain peace and order, and preserve the comfort and of municipal funds including, but not limited to, municipal
convenience of their inhabitants. roads and bridges; school buildings and other facilities for
public elementary and secondary schools; clinics, health
SECTION 17. Basic Services and Facilities. – (a) Local
centers and other health facilities necessary to carry out health
government units shall endeavor to be self-reliant and shall continue
services; communal irrigation, small water impounding
exercising the powers and discharging the duties and functions currently
projects and other similar projects; fish ports; artesian wells,
vested upon them. They shall also discharge the functions and
spring development, rainwater collectors and water supply
responsibilities of national agencies and offices devolved to them
systems; seawalls, dikes, drainage and sewerage, and flood
pursuant to this Code. Local government units shall likewise exercise
control; traffic signals and road signs; and similar facilities;
such other powers and discharge such other functions and
(ix) Public markets, slaughterhouses and other municipal
responsibilities as are necessary, appropriate, or incidental to efficient
enterprises;
and effective provision of the basic services and facilities enumerated
(x) Public cemetery;
herein.
(xi) Tourism facilities and other tourist attractions, including the
(b) Such basic services and facilities include, but are not limited to, the acquisition of equipment, regulation and supervision of
following: business concessions, and security services for such facilities;
and
(1) For a Barangay: (xii) Sites for police and fire stations and substations and municipal
(i) Agricultural support services which include planting materials jail;
distribution system and operation of farm produce collection (3) For a Province:
and buying stations; (i) Agricultural extension and on-site research services and
(ii) Health and social welfare services which include maintenance facilities which include the prevention and control of plant and
of barangay health center and day-care center; animal pests and diseases; dairy farms, livestock markets,
(iii) Services and facilities related to general hygiene and animal breeding stations, and artificial insemination centers;
sanitation, beautification, and solid waste collection; and assistance in the organization of farmers’ and fishermen’s
(iv) Maintenance of katarungang pambarangay; cooperatives and other collective organizations, as well as the
(v) Maintenance of barangay roads and bridges and water supply transfer of appropriate technology;
systems; (ii) Industrial research and development services, as well as the
(vi) Infrastructure facilities such as multi-purpose hall, multi- transfer of appropriate technology;
purpose pavement, plaza, sports center, and other similar (iii) Pursuant to national policies and subject to supervision, control
facilities; and review of the DENR, enforcement of forestry laws limited
(vii) Information and reading center; and to community-based forestry projects, pollution control law,
(viii) Satellite or public market, where viable; small-scale mining law, and other laws on the protection of the
(2) For a Municipality: environment; and mini-hydroelectric projects for local
(i) Extension and on-site research services and facilities related to purposes;
agriculture and fishery activities which include dispersal of (iv) Subject to the provisions of Title Five, Book I of this Code,
livestock and poultry, fingerlings, and other seeding materials health services which include hospitals and other tertiary
for aquaculture; palay, corn, and vegetable seed farms; health services;
medicinal plant gardens; fruit tree, coconut, and other kinds (v) Social welfare services which include programs and projects
of seedling nurseries; demonstration farms; quality control of on rebel returnees and evacuees; relief operations; and
copra and improvement and development of local distribution population development services;
channels, preferably through cooperatives; interbarangay (vi) Provincial buildings, provincial jails, freedom parks and other
irrigation systems; water and soil resource utilization and public assembly areas, and similar facilities;
conservation projects; and enforcement of fishery laws in (vii) Infrastructure facilities intended to service the needs of the
municipal waters including the conservation of mangroves; residents of the province and which are funded out of
(ii) Pursuant to national policies and subject to supervision, control provincial funds including, but not limited to, provincial roads
and review of the DENR, implementation of community-based and bridges; inter-municipal waterworks, drainage and
forestry projects which include integrated social forestry sewerage, flood control, and irrigation systems; reclamation
programs and similar projects; management and control of projects; and similar facilities;
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 (viii) Programs and projects for low-cost housing and other mass the said oversight committee: Provided, That the rights accorded to such
dwellings, except those funded by the Social Security System personnel pursuant to civil service law, rules and regulations shall not be
(SSS), Government Service Insurance System (GSIS), and the impaired: Provided, further, That regional directors who are career
Home Development Mutual Fund (HDMF); Provided, That executive service officers and other officers of similar rank in the said
national funds for these programs and projects shall be regional offices who cannot be absorbed by the local government unit
equitably allocated among the regions in proportion to the shall be retained by the National Government, without any diminution of
ratio of the homeless to the population; rank, salary or tenure.
(ix) Investment support services, including access to credit
financing; (j) To ensure the active participation of the private sector in
(x) Upgrading and modernization of tax information and collection local governance, local government units may, by ordinance, sell, lease,
services through the use of computer hardware and software encumber, or otherwise dispose of public economic enterprises owned
and other means; by them in their proprietary capacity.
(xi) Inter-municipal telecommunications services, subject to Costs may also be charged for the delivery of basic services or facilities
national policy guidelines; and enumerated in this section.
(xii) Tourism development and promotion programs;
(4) For a City: SECTION 18. Power to Generate and Apply Resources.
(5) All the services and facilities of the municipality and province, and – Local government units shall have the power and authority to establish
in addition thereto, the following: an organization that shall be responsible for the efficient and effective
(i) Adequate communication and transportation facilities; implementation of their development plans, program objectives and
(ii) Support for education, police and fire services and facilities; priorities; to create their own sources of revenues and to levy taxes, fees,
and charges which shall accrue exclusively for their use and disposition
and which shall be retained by them; to have a just share in national
(c) Notwithstanding the provisions of subsection (b) hereof, taxes which shall be automatically and directly released to them without
public works and infrastructure projects and other facilities, programs need of any further action; to have an equitable share in the proceeds
and services funded by the National Government under the annual from the utilization and development of the national wealth and
General Appropriations Act, other special laws, pertinent executive resources within their respective territorial jurisdictions including sharing
orders, and those wholly or partially funded from foreign sources, are the same with the inhabitants by way of direct benefits; to acquire,
not covered under this section, except in those cases where the local develop, lease, encumber, alienate, or otherwise dispose of real or
government unit concerned is duly designated as the implementing personal property held by them in their proprietary capacity and to apply
agency for such projects, facilities, programs, and services. their resources and assets for productive, developmental, or welfare
(d) The designs, plans, specifications, testing of materials, and purposes, in the exercise or furtherance of their governmental or
the procurement of equipment and materials from both foreign and local proprietary powers and functions and thereby ensure their development
sources necessary for the provision of the foregoing services and facilities into self-reliant communities and active participants in the attainment of
shall be undertaken by the local government unit concerned, based on national goals.
national policies, standards and guidelines. SECTION 19. Eminent Domain. – A local government unit
(e) National agencies or offices concerned shall devolve to may, through its chief executive and acting pursuant to an ordinance,
local government units the responsibility for the provision of basic exercise the power of eminent domain for public use, or purpose or
services and facilities enumerated in this section within six (6) months welfare for the benefit of the poor and the landless, upon payment of
after the effectivity of this Code. just compensation, pursuant to the provisions of the Constitution and
pertinent laws: Provided, however, That the power of eminent domain
As used in this Code, the term “devolution” refers to the act by which the may not be exercised unless a valid and definite offer has been previously
National Government confers power and authority upon the various local made to the owner, and such offer was not accepted: Provided, further,
government units to perform specific functions and responsibilities. That the local government unit may immediately take possession of the
property upon the filing of the expropriation proceedings and upon
(f) The National Government or the next higher level of local making a deposit with the proper court of at least fifteen percent (15%)
government unit may provide or augment the basic services and facilities of the fair market value of the property based on the current tax
assigned to a lower level of local government unit when such services or declaration of the property to be expropriated: Provided, finally, That,
facilities are not made available or, if made available, are inadequate to the amount to be paid for the expropriated property shall be determined
meet the requirements of its inhabitants. by the proper court, based on the fair market value at the time of the
(g) The basic services and facilities hereinabove enumerated taking of the property.
shall be funded from the share of local government units in the proceeds SECTION 20. Reclassification of Lands. – (a) A city or
of national taxes and other local revenues and funding support from the municipality may, through an ordinance passed by the sanggunian after
National Government, its instrumentalities and government-owned or - conducting public hearings for the purpose, authorize the reclassification
controlled corporations which are tasked by law to establish and maintain of agricultural lands and provide for the manner of their utilization or
such services or facilities. Any fund or resource available for the use of disposition in the following cases: (1) when the land ceases to be
local government units shall be first allocated for the provision of basic economically feasible and sound for agricultural purposes as determined
services or facilities enumerated in subsection (b) hereof before applying by the Department of Agriculture or (2) where the land shall have
the same for other purposes, unless otherwise provided in this Code. substantially greater economic value for residential, commercial, or
(h) Regional offices of national agencies or offices whose industrial purposes, as determined by the sanggunian concerned:
functions are devolved to local government units as provided herein shall Provided, That such reclassification shall be limited to the following
be phased out within one (1) year from the approval of this Code. Said percentage of the total agricultural land area at the time of the passage
national agencies and offices may establish such field units as may be of the ordinance:
necessary for monitoring purposes and providing technical assistance to (1) For highly urbanized and independent component cities,
local government units. The properties, equipment, and other assets of fifteen percent (15%);
these regional offices shall be distributed to the local government units
in the region in accordance with the rules and regulations issued by the (2) For component cities and first to the third class
Oversight Committee created under this Code. municipalities, ten percent (10%); and
(i) The devolution contemplated in this Code shall include the (3) For fourth to sixth class municipalities, five percent (5%):
transfer to local government units of the records, equipment, and other Provided, further, That agricultural lands distributed to
assets and personnel of national agencies and offices corresponding to agrarian reform beneficiaries pursuant to Republic Act
the devolved powers, functions, and responsibilities. Numbered Sixty-six hundred fifty-seven (R.A. No.
6657). otherwise known as “The Comprehensive Agrarian
Personnel of said national agencies or offices shall be absorbed by the Reform Law”, shall not be affected by the said reclassification
local government units to which they belong or in whose areas they are and the conversion of such lands into other purposes shall be
assigned to the extent that it is administratively viable as determined by governed by Section 65 of said Act.
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 (b) The President may, when public interest so requires and copy of such contract shall be posted at a conspicuous place in the
upon recommendation of the National Economic and Development provincial capitol or the city, municipal or barangay hall.
Authority, authorize a city or municipality to reclassify lands in excess of
the limits set in the next preceding paragraph. (d) Local government units shall enjoy full autonomy in the
exercise of their proprietary functions and in the management of their
(c) The local government units shall, in conformity with economic enterprises, subject to the limitations provided in this Code and
existing laws, continue to prepare their respective comprehensive land other applicable laws.
use plans enacted through zoning ordinances which shall be the primary
and dominant bases for the future use of land resources: Provided, That SECTION 23. Authority to Negotiate and Secure
the requirements for food production, human settlements, and industrial Grants. – Local chief executives may, upon authority of the sanggunian,
expansion shall be taken into consideration in the preparation of such negotiate and secure financial grants or donations in kind, in support of
plans. the basic services or facilities enumerated under Section 17 hereof, from
local and foreign assistance agencies without necessity of securing
(d) Where approval by a national agency is required for clearance or approval therefor from any department, agency, or office of
reclassification, such approval shall not be unreasonably withheld. Failure the National Government or from any higher local government unit:
to act on a proper and complete application for reclassification within Provided, That projects financed by such grants or assistance with
three (3) months from receipt of the same shall be deemed as approval national security implications shall be approved by the national agency
thereof. concerned: Provided, further, That when such national agency fails to
act on the request for approval within thirty (30) days from receipt
(e) Nothing in this Section shall be construed as repealing, thereof, the same shall be deemed approved.
amending, or modifying in any manner the provisions of R.A. No. 6657.
The local chief executive shall, within thirty (30) days upon
SECTION 21. Closure and Opening of Roads. – (a) A local signing of such grant agreement or deed of donation, report the nature,
government unit may, pursuant to an ordinance, permanently or amount, and terms of such assistance to both Houses of Congress and
temporarily close or open any local road, alley, park, or square falling the President.
within its jurisdiction: Provided, however, That in case of permanent
closure, such ordinance must be approved by at least two-thirds (2/3) of SECTION 24. Liability for Damages. – Local government
all the members of the sanggunian, and when necessary, an adequate units and their officials are not exempt from liability for death or injury
substitute for the public facility that is subject to closure is provided. to persons or damage to property.
(b) No such way or place or any part thereof shall be
permanently closed without making provisions for the maintenance of
public safety therein. A property thus permanently withdrawn from public
use may be used or conveyed for any purpose for which other real CHAPTER III
property belonging to the local government unit concerned may be INTERGOVERNMENTAL RELATIONS
lawfully used or conveyed: Provided, however, That no freedom park
shall be closed permanently without provision for its transfer or relocation ARTICLE I
to a new site. NATIONAL GOVERNMENT AND LOCAL GOVERNMENT UNITS

(c) Any national or local road, alley, park, or square may be

temporarily closed during an actual emergency, or fiesta celebrations, SECTION 25. National Supervision over Local
public rallies, agricultural or industrial fairs, or an undertaking of public Government Units. – (a) Consistent with the basic policy on local
works and highways, telecommunications, and waterworks projects, the autonomy, the President shall exercise general supervision over local
duration of which shall be specified by the local chief executive concerned government units to ensure that their acts are within the scope of their
in a written order: Provided, however, That no national or local road, prescribed powers and functions.
alley, park, or square shall be temporarily closed for athletic, cultural, or The President shall exercise supervisory authority directly over
civic activities not officially sponsored, recognized, or approved by the provinces, highly urbanized cities, and independent component cities;
local government unit concerned. through the province with respect to component cities and municipalities;
(d) Any city, municipality, or barangay may, by a duly enacted and through the city and municipality with respect to barangays.
ordinance, temporarily close and regulate the use of any local street, (b) National agencies and offices with project implementation
road, thoroughfare, or any other public place where shopping malls, functions shall coordinate with one another and with the local
Sunday, flea or night markets, or shopping areas may be established and government units concerned in the discharge of these functions. They
where goods, merchandise, foodstuffs, commodities, or articles of shall ensure the participation of local government units both in the
commerce may be sold and dispensed to the general public. planning and implementation of said national projects.
SECTION 22. Corporate Powers. – (a) Every local government unit, (c) The President may, upon request of the local government
as a corporation, shall have the following powers: unit concerned, direct the appropriate national agency to provide
(1) To have continuous succession in its corporate name; financial, technical, or other forms of assistance to the local government
unit. Such assistance shall be extended at no extra cost to the local
(2) To sue and be sued; government unit concerned.
(3) To have and use a corporate seal; (d) National agencies and offices including government-owned
or -controlled corporations with field units or branches in a province, city,
(4) To acquire and convey real or personal property;
or municipality shall furnish the local chief executive concerned, for his
(5) To enter into contracts; and information and guidance, monthly reports including duly certified
budgetary allocations and expenditures.
(6) To exercise such other powers as are granted to corporations, subject
to the limitations provided in this Code and other laws. SECTION 26. Duty of National Government Agencies in
the Maintenance of Ecological Balance. – It shall be the duty of
(b) Local government units may continue using, modify, or every national agency or government-owned or -controlled corporation
change their existing corporate seals: Provided, That newly established authorizing or involved in the planning and implementation of any project
local government units or those without corporate seals may create their or program that may cause pollution, climatic change, depletion of non-
own corporate seals which shall be registered with the Department of renewable resources, loss of cropland, rangeland, or forest cover, and
the Interior and Local Government: Provided, further, That any change extinction of animal or plant species, to consult with the local government
of corporate seal shall also be registered as provided hereon. units, nongovernmental organizations, and other sectors concerned and
(c) Unless otherwise provided in this Code, no contract may be explain the goals and objectives of the project or program, its impact
entered into by the local chief executive in behalf of the local government upon the people and the community in terms of environmental or
unit without prior authorization by the sanggunian concerned. A legible ecological balance, and the measures that will be undertaken to prevent
or minimize the adverse effects thereof.

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 SECTION 27. Prior Consultations Required. – No project SECTION 34. Role of People’s and Non-governmental
or program shall be implemented by government authorities unless the Organizations. – Local government units shall promote the
consultations mentioned in Sections 2 (c) and 26 hereof are complied establishment and operation of people’s and non-governmental
with, and prior approval of the sanggunian concerned is obtained: organizations to become active partners in the pursuit of local autonomy.
Provided, That occupants in areas where such projects are to be
implemented shall not be evicted unless appropriate relocation sites have SECTION 35. Linkages with People’s and Non-
been provided, in accordance with the provisions of the Constitution. governmental Organizations. – Local government units may enter
into joint ventures and such other cooperative arrangements with
people’s and non-governmental organizations to engage in the delivery
of certain basic services, capability-building and livelihood projects, and
ARTICLE II to develop local enterprises designed to improve productivity and
RELATIONS WITH THE PHILIPPINE NATIONAL POLICE income, diversify agriculture, spur rural industrialization, promote
ecological balance, and enhance the economic and social well-being of
SECTION 28. Powers of Local Chief Executives over the Units the people.
of the Philippine National Police. – The extent of operational supervision
and control of local chief executives over the police force, fire protection SECTION 36. Assistance to People’s and Non-
unit, and jail management personnel assigned in their respective governmental Organizations. – A local government unit may,
jurisdictions shall be governed by the provisions of Republic Act through its local chief executive and with the concurrence of the
Numbered Sixty-nine hundred seventy-five (R.A. No. 6975), otherwise sanggunian concerned, provide assistance, financial or otherwise, to
known as “The Department of the Interior and Local Government Act of such people’s and non-governmental organizations for economic,
1990”, and the rules and regulations issued pursuant thereto. socially-oriented, environmental, or cultural projects to be implemented
within its territorial jurisdiction.
CHAPTER V
ARTICLE III
LOCAL PREQUALIFICATION, BIDS AND AWARDS COMMITTEE
INTER-LOCAL GOVERNMENT RELATIONS
SECTION 37. Local Prequalification, Bids and Awards
SECTION 29. Provincial Relations with Component Committee (Local PBAC). – (a) There is hereby created a local
Cities and Municipalities. – The province, through the governor, shall prequalification, bids and awards committee in every province, city, and
ensure that every component city and municipality within its territorial municipality, which shall be primarily responsible for the conduct of
jurisdiction acts within the scope of its prescribed powers and functions. prequalification of contractors, bidding, evaluation of bids, and the
Highly urbanized cities and independent component cities shall be recommendation of awards concerning local infrastructure projects. The
independent of the province. governor or the city or municipal mayor shall act as the chairman with
the following as members:
SECTION 30. Review of Executive Orders. – (a) Except
as otherwise provided under the Constitution and special statutes, the (1) The chairman of the appropriations committee of the sanggunian
governor shall review all executive orders promulgated by the component concerned;
city or municipal mayor within his jurisdiction. The city or municipal
mayor shall review all executive orders promulgated by the punong (2) A representative of the minority party in the sanggunian concerned,
barangay within his jurisdiction. Copies of such orders shall be forwarded if any, or if there be none, one (1) chosen by said sanggunian from
to the governor or the city or municipal mayor, as the case may be, within among its members;
three (3) days from their issuance. In all instances of review, the local (3) The local treasurer;
chief executive concerned shall ensure that such executive orders are
within the powers granted by law and in conformity with provincial, city, (4) Two (2) representatives of non-governmental organizations that are
or municipal ordinances. represented in the local development council concerned, to be chosen by
the organizations themselves; and
(b) If the governor or the city or municipal mayor fails to act
on said executive orders within thirty (30) days after their submission, (5) Any practicing certified public accountant from the private sector, to
the same shall be deemed consistent with law and therefore valid. be designated by the local chapter of the Philippine Institute of Certified
Public Accountants, if any.
SECTION 31. Submission of Municipal Questions to the
Provincial Legal Officer or Prosecutor. – In the absence of a Representatives of the Commission on Audit shall observe the
municipal legal officer, the municipal government may secure the opinion proceedings of such committee and shall certify that the rules and
of the provincial legal officer, and in the absence of the latter, that of the procedures for prequalification, bids and awards have been complied
provincial prosecutor on any legal question affecting the municipality. with.
SECTION 32. City and Municipal Supervision over Their (b) The agenda and other information relevant to the meetings of such
Respective Barangays. – The city or municipality, through the city or committee shall be deliberated upon by the committee at least one (1)
municipal mayor concerned, shall exercise general supervision over week before the holding of such meetings.
component barangays to ensure that said barangays act within the scope
of their prescribed powers and functions. (c) All meetings of the committee shall be held in the provincial capitol
or the city or municipal hall. The minutes of such meetings of the
SECTION 33. Cooperative Undertakings Among Local committee and any decision made therein shall be duly recorded, posted
Government Units. – Local government units may, through at a prominent place in the provincial capitol or the city or municipal hall,
appropriate ordinances, group themselves, consolidate, or coordinate and delivered by the most expedient means to elective local officials
their efforts, services, and resources for purposes commonly beneficial concerned.
to them. In support of such undertakings, the local government units
involved may, upon approval by the sanggunian concerned after a public SECTION 38. Local Technical Committee. – (a) There is
hearing conducted for the purpose, contribute funds, real estate, hereby created a local technical committee in every province, city and
equipment, and other kinds of property and appoint or assign personnel municipality to provide technical assistance to the local prequalification,
under such terms and conditions as may be agreed upon by the bids and awards committees. It shall be composed of the provincial, city
participating local units through Memoranda of Agreement. or municipal engineer, the local planning and development coordinator,
and such other officials designated by the local prequalification, bids and
awards committee.
CHAPTER IV (b) The chairman of the local technical committee shall be designated by
the local prequalification, bids and awards committee and shall attend its
RELATIONS WITH PEOPLE’S AND NON-GOVERNMENTAL meeting in order to present the reports and recommendations of the local
ORGANIZATIONS technical committee.

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 TITLE II (c) In addition thereto, there shall be one (1) sectoral representative
ELECTIVE OFFICIALS from the women, one (1) from the workers, and one (1) from any of the
following sectors: the urban poor, indigenous cultural communities,
CHAPTER I disabled persons, or any other sector as may be determined by the
sanggunian concerned within ninety (90) days prior to the holding of the
QUALIFICATIONS AND ELECTION
next local elections as may be provided for by law. The COMELEC shall
SECTION 39. Qualifications. – (a) An elective local official promulgate the rules and regulations to effectively provide for the
must be a citizen of the Philippines; a registered voter in the barangay, election of such sectoral representatives.
municipality, city, or province or, in the case of a member of the
sangguniang panlalawigan, sangguniang panlungsod, or sangguniang SECTION 42. Date of Election. – Unless otherwise provided
by law, the elections for local officials shall be held every three (3) years
bayan, the district where he intends to be elected; a resident therein for
at least one (1) year immediately preceding the day of the election; and on the second Monday of May.
able to read and write Filipino or any other local language or dialect. SECTION 43. Term of Office. – (a) The term of office of all
(b) Candidates for the position of governor, vice-governor, or member of elective officials elected after the effectivity of this Code shall be three
the sangguniang panlalawigan, or mayor, vice-mayor or member of the (3) years, starting from noon of June 30, 1992 or such date as may be
sangguniang panlungsod of highly urbanized cities must be at least provided for by law, except that of elective barangay officials and
members of the sangguniang kabataan: Provided, That all local officials
twenty-three (23) years of age on election day.
first elected during the local elections immediately following the
(c) Candidates for the position of mayor or vice-mayor of independent ratification of the 1987 Constitution shall serve until noon of June 30,
component cities, component cities, or municipalities must be at least 1992.
twenty-one (21) years of age on election day.
(b) No local elective official shall serve for more than three (3)
(d) Candidates for the position of member of the sangguniang consecutive terms in the same position. Voluntary renunciation of the
panlungsod or sangguniang bayan must be at least eighteen (18) years office for any length of time shall not be considered as an interruption in
of age on election day. the continuity of service for the full term for which the elective official
concerned was elected.
(e) Candidates for the position of punong barangay or member of the
sangguniang barangay must be at least eighteen (18) years of age on (c) The term of barangay officials and members of the sangguniang
election day. kabataan shall be for five (5) years, which shall begin after the regular
election of barangay officials on the second Monday of May
(f) Candidates for the sangguniang kabataan must be at least fifteen (15) 1997: Provided, That the sangguniang kabataan members who were
years of age but not more than twenty-one (21) years of age on election elected in the May 1996 elections shall serve until the next regular
day. election of barangay officials.
SECTION 40. Disqualifications. – The following persons
are disqualified from running for any elective local position:
CHAPTER II
(a) Those sentenced by final judgment for an offense involving moral VACANCIES AND SUCCESSION
turpitude or for an offense punishable by one (1) year or more of
SECTION 44. Permanent Vacancies in the Offices of the
imprisonment, within two (2) years after serving sentence;
Governor, Vice-Governor, Mayor, and Vice-Mayor. – (a) If a
(b) Those removed from office as a result of an administrative case; permanent vacancy occurs in the office of the governor or mayor, the
vice-governor or vice-mayor concerned shall become the governor or
(c) Those convicted by final judgment for violating the oath of allegiance mayor. If a permanent vacancy occurs in the offices of the governor,
to the Republic; vice-governor, mayor, or vice-mayor, the highest ranking sanggunian
(d) Those with dual citizenship; member or, in case of his permanent inability, the second highest ranking
sanggunian member, shall become the governor, vice-governor, mayor
(e) Fugitives from justice in criminal or non-political cases here or or vice-mayor, as the case may be. Subsequent vacancies in the said
abroad; office shall be filled automatically by the other sanggunian members
according to their ranking as defined herein.
(f) Permanent residents in a foreign country or those who have acquired
the right to reside abroad and continue to avail of the same right after (b) If a permanent vacancy occurs in the office of the punong barangay,
the effectivity of this Code; and the highest ranking sanggunian barangay member or, in case of his
permanent inability, the second highest ranking sanggunian member,
(g) The insane or feeble-minded.
shall become the punong barangay.
SECTION 41. Manner of Election. – (a) The governor, vice-
(c) A tie between or among the highest ranking sanggunian members
governor, city mayor, city vice-mayor, municipal mayor, municipal vice-
shall be resolved by the drawing of lots.
mayor, and punong barangay shall be elected at large in their respective
units by the qualified voters therein. However, the sangguniang kabataan (d) The successors as defined herein shall serve only the unexpired terms
chairman for each barangay shall be elected by the registered voters of of their predecessors.
the katipunan ng kabataan, as provided in this Code.
For purposes of this Chapter, a permanent vacancy arises when an
(b) The regular members of the sangguniang panlalawigan, sangguniang elective local official fills a higher vacant office, refuses to assume office,
panlungsod, and sangguniang bayan shall be elected by district as fails to qualify, dies, is removed from office, voluntarily resigns, or is
follows: otherwise permanently incapacitated to discharge the functions of his
office.
First and second-class provinces shall have ten (10) regular members;
third and fourth-class provinces, eight (8); and fifth and sixth-class For purposes of succession as provided in this Chapter, ranking in the
provinces, six (6): Provided, That in provinces having more than five (5) sanggunian shall be determined on the basis of the proportion of votes
legislative districts, each district shall have two (2) sangguniang obtained by each winning candidate to the total number of registered
panlalawigan members, without prejudice to the provisions of Section 2 voters in each district in the immediately preceding local election.
of Republic Act No. 6637. Sangguniang barangay members shall be
elected at large. The presidents of the leagues of sanggunian members SECTION 45. Permanent Vacancies in the Sanggunian.
of component cities and municipalities shall serve as ex officio members – (a) Permanent vacancies in the sanggunian where automatic
of the sangguniang panlalawigan concerned. The presidents of the liga succession provided above do not apply shall be filled by appointment in
ng mga barangay and the pederasyon ng mga sangguniang kabataan the following manner:
elected by their respective chapters, as provided in this Code, shall serve (1) The President, through the Executive Secretary, in the case of
as ex officio members of the sangguniang panlalawigan, sangguniang the sangguniang panlalawigan and the sangguniang panlungsod of
panlungsod, and sangguniang bayan. highly urbanized cities and independent component cities;

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 (2) The governor, in the case of the sangguniang panlungsod of employees shall be approved by the vice-governor or city or municipal
component cities and the sangguniang bayan; vice-mayor concerned;
(3) The city or municipal mayor, in the case of sangguniang (3) Leaves of absence of the component city or municipal mayor shall be
barangay, upon recommendation of the sangguniang barangay approved by the governor; and
concerned.
(4) Leaves of absence of a punong barangay shall be approved by the
(b) Except for the sangguniang barangay, only the nominee of the city or municipal mayor: Provided, That leaves of absence of
political party under which the sanggunian member concerned had been sangguniang barangay members shall be approved by the punong
elected and whose elevation to the position next higher in rank created barangay.
the last vacancy in the sanggunian shall be appointed in the manner
hereinabove provided. The appointee shall come from the same political (b) Whenever the application for leave of absence hereinabove specified
party as that of the sanggunian member who caused the vacancy and is not acted upon within five (5) working days after receipt thereof, the
shall serve the unexpired term of the vacant office. In the appointment application for leave of absence shall be deemed approved.
herein mentioned, a nomination and a certificate of membership of the
appointee from the highest official of the political party concerned are CHAPTER III
conditions sine qua non, and any appointment without such nomination
Local Legislation
and certification shall be null and void ab initio and shall be a ground for
administrative action against the official responsible therefor. SECTION 48. Local Legislative Power. – Local legislative
power shall be exercised by the sangguniang panlalawigan for the
(c) In case the permanent vacancy is caused by a sanggunian member
province; the sangguniang panlungsod for the city; the sangguniang
who does not belong to any political party, the local chief executive shall,
bayan for the municipality; and the sangguniang barangay for the
upon recommendation of the sanggunian concerned, appoint a qualified
barangay.
person to fill the vacancy.
SECTION 49. Presiding Officer. – (a) The vice-governor
(d) In case of vacancy in the representation of the youth and the
shall be the presiding officer of the sangguniang panlalawigan; the city
barangay in the sanggunian, said vacancy shall be filled automatically by
vice-mayor, of the sangguniang panlungsod; the municipal vice-mayor
the official next in rank of the organization concerned.
of the sangguniang bayan; and the punong barangay, of the
SECTION 46. Temporary Vacancy in the Office of the sangguniang barangay. The presiding officer shall vote only to break a
Local Chief Executive. – (a) When the governor, city or municipal tie.
mayor, or punong barangay is temporarily incapacitated to perform his
(b) In the event of the inability of the regular presiding officer to preside
duties for physical or legal reasons such as, but not limited to, leave of
at a sanggunian session, the members present and constituting a quorum
absence, travel abroad, and suspension from office, the vice-governor,
shall elect from among themselves a temporary presiding officer. He shall
city or municipal vice-mayor, or the highest ranking sangguniang
certify within ten (10) days from the passage of ordinances enacted and
barangay member shall automatically exercise the powers and perform
resolutions adopted by the sanggunian in the session over which he
the duties and functions of the local chief executive concerned, except
temporarily presided.
the power to appoint, suspend, or dismiss employees which can only be
exercised if the period of temporary incapacity exceeds thirty (30) SECTION 50. Internal Rules of Procedure. – (a) On the
working days. first regular session following the election of its members and within
ninety (90) days thereafter, the sanggunian concerned shall adopt or
(b) Said temporary incapacity shall terminate upon submission to the
update its existing rules of procedure.
appropriate sanggunian of a written declaration by the local chief
executive concerned that he has reported back to office. In cases where (b) The rules of procedure shall provided for the following:
the temporary incapacity is due to legal causes, the local chief executive
concerned shall also submit necessary documents showing that said legal (1) The organization of the sanggunian and the election of its officers
causes no longer exist. as well as the creation of standing committees which shall include,
but shall not be limited to, the committees on appropriations, women
(c) When the incumbent local chief executive is traveling within the and family, human rights, youth and sports development,
country but outside his territorial jurisdiction for a period not exceeding environmental protection, and cooperatives; the general jurisdiction
three (3) consecutive days, he may designate in writing the officer-in- of each committee; and the election of the chairman and members
charge of the said office. Such authorization shall specify the powers and of each committee;
functions that the local official concerned shall exercise in the absence of
the local chief executive except the power to appoint, suspend, or dismiss (2) The order and calendar of business for each session;
employees. (3) The legislative process;
(d) In the event, however, that the local chief executive concerned fails (4) The parliamentary procedures which include the conduct of
or refuses to issue such authorization, the vice-governor, the city or members during sessions;
municipal vice-mayor, or the highest ranking sangguniang barangay
member, as the case may be, shall have the right to assume the powers, (5) The discipline of members for disorderly behavior and absences
duties, and functions of the said office on the fourth (4th) day of absence without justifiable cause for four (4) consecutive sessions, for which
of the said local chief executive, subject to the limitations provided in they may be censured, reprimanded, or excluded from the session,
subsection (c) hereof. suspended for not more than sixty (60) days, or expelled: Provided,
That the penalty of suspension or expulsion shall require the
(e) Except as provided above, the local chief executive shall in no case concurrence of at least two-thirds (2/3) vote of all the sanggunian
authorize any local official to assume the powers, duties, and functions members: Provided, further, That a member convicted by final
of the office, other than the vice-governor, the city or municipal vice- judgment to imprisonment of at least one (1) year for any crime
mayor, or the highest ranking sangguniang barangay member, as the involving moral turpitude shall be automatically expelled from the
case may be. sanggunian; and
SECTION 47. Approval of Leaves of Absence. – (a) (6) Such other rules as the sanggunian may adopt.
Leaves of absence of local elective officials shall be approved as follows:
SECTION 51. Full Disclosure of Financial and Business
(1) Leaves of absence of the governor and the mayor of a highly Interests of Sanggunian Members. – (a) Every sanggunian member
urbanized city or an independent component city shall be approved by shall, upon assumption to office, make a full disclosure of his business
the President or his duly authorized representative; and financial interests. He shall also disclose any business, financial, or
(2) Leaves of absence of vice-governor or a city or municipal vice-mayor professional relationship or any relation by affinity or consanguinity
shall be approved by the local chief executive concerned: Provided, That within the fourth civil degree, which he may have with any person, firm,
the leaves of absence of the members of the sanggunian and its or entity affected by any ordinance or resolution under consideration by
the sanggunian of which he is a member, which relationship may result
in conflict of interest. Such relationship shall include:
Page | 8
 (1) Ownership of stock or capital, or investment, in the entity or firm chief executive concerned approves the same, he shall affix his signature
to which the ordinance or resolution may apply; and on each and every page thereof; otherwise, he shall veto it and return
the same with his objections to the sanggunian, which may proceed to
(2) Contracts or agreements with any person or entity which the reconsider the same. The sanggunian concerned may override the veto
ordinance or resolution under consideration may affect. In the of the local chief executive by two-thirds (2/3) vote of all its members,
absence of a specific constitutional or statutory provision applicable thereby making the ordinance or resolution effective for all legal intents
to this situation, “conflict of interest” refers in general to one where and purposes.
it may be reasonably deduced that a member of a sanggunian may
not act in the public interest due to some private, pecuniary, or other (b) The veto shall be communicated by the local chief executive
personal considerations that may tend to affect his judgment to the concerned to the sanggunian within fifteen (15) days in the case of a
prejudice of the service or the public. province, and ten (10) days in the case of a city or a municipality;
otherwise, the ordinance shall be deemed approved as if he had signed
(b) The disclosure required under this Act shall be made in writing and it.
submitted to the secretary of the sanggunian or the secretary of the
committee of which he is a member. The disclosure shall, in all cases, (c) Ordinances enacted by the sangguniang barangay shall, upon
form part of the record of the proceedings and shall be made in the approval by the majority of all its members, be signed by the punong
following manner: barangay.
(1) Disclosure shall be made before the member participates in the SECTION 55. Veto Power of the Local Chief Executive.
deliberations on the ordinance or resolution under consideration: – (a) The local chief executive may veto any ordinance of the
Provided, That, if the member did not participate during the sangguniang panlalawigan, sangguniang panlungsod, or sangguniang
deliberations, the disclosure shall be made before voting on the bayan on the ground that it is ultra vires or prejudicial to the public
ordinance or resolution on second and third readings; and welfare, stating his reasons therefor in writing.
(2) Disclosure shall be made when a member takes a position or (b) The local chief executive, except the punong barangay, shall have
makes a privilege speech on a matter that may affect the business the power to veto any particular item or items of an appropriations
interest, financial connection, or professional relationship described ordinance, an ordinance or resolution adopting a local development plan
herein. and public investment program, or an ordinance directing the payment
of money or creating liability. In such a case, the veto shall not affect the
SECTION 52. Sessions. – (a) On the first day of the session item or items which are not objected to. The vetoed item or items shall
immediately following the election of its members, the sanggunian shall, not take effect unless the sanggunian overrides the veto in the manner
by resolution, fix the day, time, and place of its regular sessions. The herein provided; otherwise, the item or items in the appropriations
minimum number of regular sessions shall be once a week for the ordinance of the previous year corresponding to those vetoed, if any,
sangguniang panlalawigan, sangguniang panlungsod, and sangguniang shall be deemed reenacted.
bayan, and twice a month for the sangguniang barangay.
(c) The local chief executive may veto an ordinance or resolution only
(b) When public interest so demands, special sessions may be called by once. The sanggunian may override the veto of the local chief executive
the local chief executive or by a majority of the members of the by two-thirds (2/3) vote of all its members, thereby making the ordinance
sanggunian. effective even without the approval of the local chief executive
(c) All sanggunian sessions shall be open to the public unless a closed- concerned.
door session is ordered by an affirmative vote of majority of the members SECTION 56. Review of Component City and Municipal
present, there being a quorum, in the public interest or for reasons of Ordinances or Resolutions by the Sangguniang Panlalawigan. –
security, decency, or morality. No two (2) sessions, regular or special, (a) Within three (3) days after approval, the secretary to the
may be held in a single day. sangguniang panlungsod or sangguniang bayan shall forward to the
(d) In the case of special sessions of the sanggunian, a written notice to sangguniang panlalawigan for review, copies of approved ordinances and
the members shall be served personally at the member’s usual place of the resolutions approving the local development plans and public
residence at least twenty-four (24) hours before the special session is investment programs formulated by the local development councils.
held. (b) Within thirty (30) days after the receipt of copies of such ordinances
Unless otherwise concurred in by two-thirds (2/3) vote of the sanggunian and resolutions, the sangguniang panlalawigan shall examine the
members present, there being a quorum, no other matters may be documents or transmit them to the provincial attorney, or if there be
considered at a special session except those stated in the notice. none, to the provincial prosecutor for prompt examination. The provincial
attorney or provincial prosecutor shall, within a period of ten (10) days
(e) Each sanggunian shall keep a journal and record of its proceedings from receipt of the documents, inform the sangguniang panlalawigan in
which may be published upon resolution of the sanggunian concerned. writing of his comments or recommendations, which may be considered
by the sangguniang panlalawigan in making its decision.
SECTION 53. Quorum. – (a) A majority of all the members
of the sanggunian who have been elected and qualified shall constitute (c) If the sangguniang panlalawigan finds that such an ordinance or
a quorum to transact official business. Should a question of quorum be resolution is beyond the power conferred upon the sangguniang
raised during a session, the presiding officer shall immediately proceed panlungsod or sangguniang bayan concerned, it shall declare such
to call the roll of the members and thereafter announce the results. ordinance or resolution invalid in whole or in part. The sangguniang
panlalawigan shall enter its action in the minutes and shall advise the
(b) Where there is no quorum, the presiding officer may declare a recess
corresponding city or municipal authorities of the action it has taken.
until such time as a quorum is constituted, or a majority of the members
present may adjourn from day to day and may compel the immediate (d) If no action has been taken by the sangguniang panlalawigan within
attendance of any member absent without justifiable cause by thirty (30) days after submission of such an ordinance or resolution, the
designating a member of the sanggunian, to be assisted by a member or same shall be presumed consistent with law and therefore valid.
members of the police force assigned in the territorial jurisdiction of the
local government unit concerned, to arrest the absent member and SECTION 57. Review of Barangay Ordinances by the
present him at the session. Sangguniang Panlungsod or Sangguniang Bayan. – (a) Within ten
(10) days after its enactment, the sangguniang barangay shall furnish
(c) If there is still no quorum despite the enforcement of the immediately copies of all barangay ordinances to the sangguniang panlungsod or
preceding subsection, no business shall be transacted. The presiding sangguniang bayan concerned for review as to whether the ordinance is
officer, upon proper motion duly approved by the members present, shall consistent with law and city or municipal ordinances.
then declare the session adjourned for lack of quorum.
(b) If the sangguniang panlungsod or sangguniang bayan, as the case
SECTION 54. Approval of Ordinances. – (a) Every may be, fails to take action on barangay ordinances within thirty (30)
ordinance enacted by the sangguniang panlalawigan, sangguniang days from receipt thereof, the same shall be deemed approved.
panlungsod, or sangguniang bayan shall be presented to the provincial
governor or city or municipal mayor, as the case may be. If the local
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(c) If the sangguniang panlungsod or sangguniang bayan, as the case SECTION 61. Form and Filing of Administrative
may be, finds the barangay ordinances inconsistent with law or city or Complaints. – A verified complaint against any erring local elective
municipal ordinances, the sanggunian concerned shall, within thirty (30) official shall be prepared as follows:
days from receipt thereof, return the same with its comments and
recommendations to the sangguniang barangay concerned for (a) A complaint against any elective official of a province, a highly
adjustment, amendment, or modification; in which case, the effectivity urbanized city, an independent component city or component city shall
of the barangay ordinance is suspended until such time as the revision be filed before the Office of the President;
called for is effected. (b) A complaint against any elective official of a municipality shall be filed
SECTION 58. Enforcement of Disapproved Ordinances before the sangguniang panlalawigan whose decision may be appealed
or Resolutions. – Any attempt to enforce any ordinance or any to the Office of the President; and
resolution approving the local development plan and public investment (c) A complaint against any elective barangay official shall be filed before
program, after the disapproval thereof, shall be sufficient ground for the the sangguniang panlungsod or sangguniang bayan concerned whose
suspension or dismissal of the official or employee concerned. decision shall be final and executory.
SECTION 59. Effectivity of Ordinances or Resolutions. SECTION 62. Notice of Hearing. – (a) Within seven (7)
– (a) Unless otherwise stated in the ordinance or the resolution approving days after the administrative complaint is filed, the Office of the President
the local development plan and public investment program, the same or the sanggunian concerned, as the case may be, shall require the
shall take effect after ten (10) days from the date a copy thereof is posted respondent to submit his verified answer within fifteen (15) days from
in a bulletin board at the entrance of the provincial capitol or city, receipt thereof, and commence the investigation of the case within ten
municipal, or barangay hall, as the case may be, and in at least two (2) (10) days after receipt of such answer of the respondent.
other conspicuous places in the local government unit concerned.
(b) When the respondent is an elective official of a province or highly
(b) The secretary to the sanggunian concerned shall cause the posting urbanized city, such hearing and investigation shall be conducted in the
of an ordinance or resolution in the bulletin board at the entrance of the place where he renders or holds office. For all other local elective officials,
provincial capitol and the city, municipal, or barangay hall in at least two the venue shall be the place where the sanggunian concerned is located.
(2) conspicuous places in the local government unit concerned not later
than five (5) days after approval thereof. (c) However, no investigation shall be held within ninety (90) days
immediately prior to any local election, and no preventive suspension
The text of the ordinance or resolution shall be disseminated and posted shall be imposed within the said period. If preventive suspension has
in Filipino or English and in the language or dialect understood by the been imposed prior to the 90-day period immediately preceding local
majority of the people in the local government unit concerned, and the election, it shall be deemed automatically lifted upon the start of
secretary to the sanggunian shall record such fact in a book kept for the aforesaid period.
purpose, stating the dates of approval and posting.
SECTION 63. Preventive Suspension. – (a) Preventive
(c) The gist of all ordinances with penal sanctions shall be published in a suspension may be imposed:
newspaper of general circulation within the province where the local
legislative body concerned belongs. In the absence of any newspaper of (1) By the President, if the respondent is an elective official of a
general circulation within the province, posting of such ordinances shall province, a highly urbanized or an independent component city;
be made in all municipalities and cities of the province where the
(2) By the governor, if the respondent is an elective official of a
sanggunian of origin is situated.
component city or municipality; or
(d) In the case of highly urbanized and independent component cities,
(3) By the mayor, if the respondent is an elective official of the
the main features of the ordinance or resolution duly enacted or adopted
barangay.
shall, in addition to being posted, be published once in a local newspaper
of general circulation within the city: Provided, That in the absence (b) Preventive suspension may be imposed at any time after the issues
thereof the ordinance or resolution shall be published in any newspaper are joined, when the evidence of guilt is strong, and given the gravity of
of general circulation. the offense, there is great probability that the continuance in office of
the respondent could influence the witnesses or pose a threat to the
safety and integrity of the records and other evidence: Provided, That,
CHAPTER IV any single preventive suspension of local elective officials shall not
extend beyond sixty (60) days: Provided, further, That in the event that
DISCIPLINARY ACTIONS several administrative cases are filed against an elective official, he
SECTION 60. Grounds for Disciplinary Actions. – An cannot be preventively suspended for more than ninety (90) days within
elective local official may be disciplined, suspended, or removed from a single year on the same ground or grounds existing and known at the
office on any of the following grounds: time of the first suspension.

(a) Disloyalty to the Republic of the Philippines; (c) Upon expiration of the preventive suspension, the suspended elective
official shall be deemed reinstated in office without prejudice to the
(b) Culpable violation of the Constitution; continuation of the proceedings against him, which shall be terminated
within one hundred twenty (120) days from the time he was formally
(c) Dishonesty, oppression, misconduct in office, gross negligence, or notified of the case against him. However, if the delay in the proceedings
dereliction of duty; of the case is due to his fault, neglect, or request, other than the appeal
(d) Commission of any offense involving moral turpitude or an offense duly filed, the duration of such delay shall not be counted in computing
punishable by at least prision mayor; the time of termination of the case.

(e) Abuse of authority; (d) Any abuse of the exercise of the power of preventive suspension shall
be penalized as abuse of authority.
(f) Unauthorized absence for fifteen (15) consecutive working days,
except in the case of members of the sangguniang panlalawigan, SECTION 64. Salary of Respondent Pending
sangguniang panlungsod, sangguniang bayan, and sangguniang Suspension. – The respondent official preventively suspended from
barangay; office shall receive no salary or compensation during such suspension;
but upon subsequent exoneration and reinstatement, he shall be paid
(g) Application for, or acquisition of, foreign citizenship or residence or full salary or compensation including such emoluments accruing during
the status of an immigrant of another country; and such suspension.
(h) Such other grounds as may be provided in this Code and other laws. SECTION 65. Rights of Respondent. – The respondent
shall be accorded full opportunity to appear and defend himself in person
An elective local official may be removed from office on the grounds
or by counsel, to confront and cross-examine the witnesses against him,
enumerated above by order of the proper court.
and to require the attendance of witnesses and the production of

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documentary evidence in his favor through the compulsory process of (1) A written petition for recall duly signed by the representatives of
subpoena or subpoena duces tecum. the petitioners before the election registrar or his representative, shall
be filed with the COMELEC through its office in the local government
SECTION 66. Form and Notice of Decision. – (a) The unit concerned.
investigation of the case shall be terminated within ninety (90) days from
the start thereof. Within thirty (30) days after the end of the (2) The petition to recall shall contain the following:
investigation, the Office of the President or the sanggunian concerned
shall render a decision in writing stating clearly and distinctly the facts (a) The names and addresses of the petitioners written in
and the reasons for such decision. Copies of said decision shall legible form and their signatures;
immediately be furnished the respondent and all interested parties. (b) The barangay, city or municipality, local legislative district
(b) The penalty of suspension shall not exceed the unexpired term of the and the province to which the petitioners belong;
respondent or a period of six (6) months for every administrative offense, (c) The name of the official sought to be recalled; and
nor shall said penalty be a bar to the candidacy of the respondent so
suspended as long as he meets the qualifications required for the office. (d) A brief narration of the reasons and justifications therefore.

(c) The penalty of removal from office as a result of an administrative (3) The COMELEC shall, within fifteen (15) days from the filing of the
investigation shall be considered a bar to the candidacy of the respondent petition, certify to the sufficiency of the required number of
for any elective position. signatures. Failure to obtain the required number of signatures
automatically nullifies the petition;
SECTION 67. Administrative Appeals. – Decisions in
administrative cases may, within thirty (30) days from receipt thereof, (4) If the petition is found to be sufficient in form, the Comelec or its
be appealed to the following: duly authorized representative shall, within three (3) days from the
issuance of the certification, provide the official sought to be recalled
(a) The sangguniang panlalawigan, in the case of decisions of the a copy of the petition, cause its publication in a national newspaper
sangguniang panlungsod of component cities and the sangguniang of general circulation and a newspaper of general circulation in the
bayan; and locality, once a week for three (3) consecutive weeks at the expense
(b) The Office of the President, in the case of decisions of the of the petitioners and at the same time post copies thereof in public
sangguniang panlalawigan and the sangguniang panlungsod of highly and conspicuous places for a period of not less than ten (10) days nor
urbanized cities and independent component cities. more than twenty (20) days, for the purpose of allowing interested
parties to examine and verify the validity of the petition and the
Decisions of the Office of the President shall be final and executory. authenticity of the signatures contained therein.
SECTION 68. Execution Pending Appeal. – An appeal shall not prevent a (5) The Comelec or its duly authorized representatives shall, upon
decision from becoming final or executory. The respondent shall be issuance of certification, proceed independently with the verification
considered as having been placed under preventive suspension during and authentication of the signatures of the petitioners and registered
the pendency of an appeal in the event he wins such appeal. In the event voters contained therein. Representatives of the petitioners and the
the appeal results in an exoneration, he shall be paid his salary and such official sought to be recalled shall be duly notified and shall have the
other emoluments during the pendency of the appeal. right to participate therein as mere observers. The filing of any
challenge or protest shall be allowed within the period provided in the
immediately preceding paragraph and shall be ruled upon with finality
CHAPTER V within fifteen (15) days from the date of filing of such protest or
Recall challenge;
SECTION 69. By Whom Exercised. – The power of recall (6) Upon the lapse of the aforesaid period, the Comelec or its duly
for loss of confidence shall be exercised by the registered voters of a authorized representative shall announce the acceptance of
local government unit to which the local elective official subject to such candidates to the position and thereafter prepare the list of
recall belongs. candidates which shall include the name of the official sought to be
recalled.
SECTION 70. Initiation of the Recall Process. –
SECTION 71. Election on Recall. – Upon the filing of a valid
(a) The Recall of any elective provincial, city, municipal or barangay
petition for recall with the appropriate local office of the Comelec, the
official shall be commenced by a petition of a registered voter in the local
Comelec or its duly authorized representative shall set the date of the
government unit concerned and supported by the registered voters in
election or recall, which shall not be later than thirty (30) days upon the
the local government unit concerned during the election in which the
completion of the procedure outlined in the preceding article, in the case
local official sought to be recalled was elected subject to the following
of the barangay, city or municipal officials, and forty-five (45) days in the
percentage requirements:
case of provincial officials. The officials sought to be recalled shall
(1) At least twenty-five percent (25%) in the case of local government automatically be considered as duly registered candidate or candidates
units with a voting population of not more than twenty thousand to the pertinent positions and, like other candidates, shall be entitled to
(20,000); be voted upon.

(2) At least twenty percent (20%) in the case of local government SECTION 72. Effectivity of Recall. – The recall of an
units with a voting population of at least twenty thousand (20,000) elective local official shall be effective only upon the election and
but not more than seventy-five thousand (75,000): Provided, That in proclamation of a successor in the person of the candidate receiving the
no case shall the required petitioners be less than five thousand highest number of votes cast during the election on recall. Should the
(5,000); official sought to be recalled receive the highest number of votes,
confidence in him is thereby affirmed, and he shall continue in office.
(3) At least fifteen percent (15%) in the case of local government
units with a voting population of at least seventy-five thousand SECTION 73. Prohibition from Resignation. – The
(75,000) but not more than three hundred thousand (300,000): elective local official sought to be recalled shall not be allowed to resign
Provided, however, That in no case shall the required number of while the recall process is in progress.
petitioners be less than fifteen thousand (15,000); and
SECTION 74. Limitations on Recall. – (a) Any elective local
(4) At least ten percent (10%) in the case of local government units official may be the subject of a recall election only once during his term
with a voting population of over three hundred thousand (300,000): of office for loss of confidence.
Provided, however, That in no case shall the required petitioners be
(b) No recall shall take place within one (1) year from the date of the
less than forty-five thousand (45,000).
official’s assumption to office or one (1) year immediately preceding a
(b) The process of recall shall be effected in accordance with the regular local election.
following procedure:

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 SECTION 75. Expenses Incident to Recall Elections. – The punong barangay, the sangguniang barangay members, the
All expenses incident to recall elections shall be borne by the COMELEC. sangguniang kabataan chairman, the barangay treasurer, and the
For this purpose, there shall be included in the annual General barangay secretary shall be entitled to such compensation, allowances,
Appropriations Act a contingency fund at the disposal of the COMELEC emoluments, and such other privileges as provided under Title One, Book
for the conduct of recall elections. III of this Code.
Elective local officials shall be entitled to the same leave privileges as
TITLE III those enjoyed by appointive local officials, including the cumulation and
HUMAN RESOURCES AND DEVELOPMENT commutation thereof.

SECTION 76. Organizational Structure and Staffing SECTION 82. Resignation of Elective Local Officials. –
Pattern. – Every local government unit shall design and implement its (a) Resignations by elective local officials shall be deemed effective only
own organizational structure and staffing pattern taking into upon acceptance by the following authorities:
consideration its service requirements and financial capability, subject to (1) The President, in the case of governors, vice-governors, and
the minimum standards and guidelines prescribed by the Civil Service
mayors and vice-mayors of highly urbanized cities and independent
Commission. component cities;
SECTION 77. Responsibility for Human Resources and (2) The governor, in the case of municipal mayors, municipal vice-
Development. – The chief executive of every local government unit
mayors, city mayors and city vice-mayors of component cities;
shall be responsible for human resources and development in his unit
and shall take all personnel actions in accordance with the constitutional (3) The sanggunian concerned, in the case of sanggunian members;
provisions on civil service, pertinent laws, and rules and regulations and
thereon, including such policies, guidelines and standards as the Civil
Service Commission may establish: Provided, That the local chief (4) The city or municipal mayor, in the case of barangay officials.
executive may employ emergency or casual employees or laborers paid (b) Copies of the resignation letters of elective local officials, together
on a daily wage or piecework basis and hired through job orders for local with the action taken by the aforesaid authorities, shall be furnished the
projects authorized by the sanggunian concerned, without need of Department of the Interior and Local Government.
approval or attestation by the Civil Service Commission: Provided,
further, That the period of employment of emergency or casual laborers (c) The resignation shall be deemed accepted if not acted upon by the
as provided in this section shall not exceed six (6) months. authority concerned within fifteen (15) working days from receipt
thereof.
The Joint Commission on Local Government Personnel Administration
organized pursuant to Presidential Decree Numbered Eleven Hundred (d) Irrevocable resignations by sanggunian members shall be deemed
thirty-six (P.D. No. 1136) is hereby abolished and its personnel, records, accepted upon presentation before an open session of the sanggunian
equipment and other assets transferred to the appropriate office in the concerned and duly entered in its records: Provided, however, That this
Civil Service Commission. subsection does not apply to sanggunian members who are subject to
recall elections or to cases where existing laws prescribe the manner of
SECTION 78. Civil Service Law, Rules and Regulations, acting upon such resignations.
and Other Related Issuances. – All matters pertinent to human
resources and development in local government units shall be governed SECTION 83. Grievance Procedure. – In every local
by the civil service law and such rules and regulations and other government unit, the local chief executive shall establish a procedure to
issuances promulgated pursuant thereto, unless otherwise specified in inquire into, act upon, resolve or settle complaints and grievances
this Code. presented by local government employees.

SECTION 79. Limitation on Appointments. – No person SECTION 84. Administrative Discipline. – Investigation
shall be appointed in the career service of the local government if he is and adjudication of administrative complaints against appointive local
related within the fourth civil degree of consanguinity or affinity to the officials and employees as well as their suspension and removal shall be
appointing or recommending authority. in accordance with the civil service law and rules and other pertinent
laws. The results of such administrative investigations shall be reported
SECTION 80. Public Notice of Vacancy; Personnel to the Civil Service Commission.
Selection Board. – (a) Whenever a local executive decides to fill a
vacant career position, there shall be posted notices of the vacancy in at SECTION 85. Preventive Suspension of Appointive
least three (3) conspicuous public places in the local government unit Local Officials and Employees. – (a) The local chief executives may
concerned for a period of not less than fifteen (15) days. preventively suspend for a period not exceeding sixty (60) days and
subordinate official or employee under his authority pending
(b) There shall be established in every province, city or municipality a investigation if the charge against such official or employee involves
personnel selection board to assist the local chief executive in the dishonesty, oppression or grave misconduct or neglect in the
judicious and objective selection of personnel for employment as well as performance of duty, or if there is reason to believe that the respondent
for promotion, and in the formulation of such policies as would contribute is guilty of the charges which would warrant his removal from the service.
to employee welfare.
(b) Upon expiration of the preventive suspension, the suspended official
(c) The personnel selection board shall be headed by the local chief or employee shall be automatically reinstated in office without prejudice
executive, and its members shall be determined by resolution of the to the continuation of the administrative proceedings against him until
sanggunian concerned. A representative of the Civil Service Commission, its termination. If the delay in the proceedings of the case is due to the
if any, and the personnel officer of the local government unit concerned fault, neglect or request of the respondent, the time of the delay shall
shall be ex officio members of the board. not be counted in computing the period of suspension herein provided.
SECTION 81. Compensation of Local Officials and SECTION 86. Administrative Investigation. – In any local
Employees. – The compensation of local officials and personnel shall government unit, administrative investigation may be conducted by a
be determined by the sanggunian concerned: Provided, That the increase person or a committee duly authorized by the local chief executive. Said
in compensation of elective local officials shall take effect only after the person or committee shall conduct hearings on the cases brought against
terms of office of those approving such increase shall have expired: appointive local officials and employees and submit their findings and
Provided, further, That the increase in compensation of the appointive recommendations to the local chief executive concerned within fifteen
officials and employees shall take effect as provided in the ordinance (15) days from the conclusion of the hearings. The administrative cases
authorizing such increase: Provided, however, That said increases shall herein mentioned shall be decided within ninety (90) days from the time
not exceed the limitations on budgetary allocations for personal services the respondent is formally notified of the charges.
provided under Title Five, Book II of this Code: Provided, finally, That
such compensation may be based upon the pertinent provisions of SECTION 87. Disciplinary Jurisdiction. – Except as
Republic Act Numbered Sixty-seven fifty-eight (R.A. No 6758), otherwise otherwise provided by law, the local chief executive may impose the
known as the “Compensation and Position Classification Act of 1989”. penalty of removal from service, demotion in rank, suspension for not
more than one (1) year without pay, fine in an amount not exceeding six
Page | 12
(6) months salary, or reprimand and otherwise discipline subordinate oath or affirmation of office shall be filed with the office of the local chief
officials and employees under his jurisdiction. If the penalty imposed is executive concerned. A copy of the oath or affirmation of office of all
suspension without pay for not more than thirty (30) days, his decision elective and appointive local officials and employees shall be preserved
shall be final. If the penalty imposed is heavier than suspension of thirty in the individual personal records file under the custody of the personnel
(30) days, the decision shall be appealable to the Civil Service office, division, or section of the local government unit concerned.
Commission, which shall decide the appeal within thirty (30) days from
receipt thereof. SECTION 93. Partisan Political Activity. – No local official
or employee in the career civil service shall engage directly or indirectly
SECTION 88. Execution Pending Appeal. – An appeal in any partisan political activity or take part in any election, initiative,
shall not prevent the execution of a decision of removal or suspension of referendum, plebiscite, or recall, except to vote, nor shall he use his
a respondent-appellant. In case the respondent-appellant is exonerated, official authority or influence to cause the performance of any political
he shall be reinstated to his position with all the rights and privileges activity by any person or body. He may, however, express his views on
appurtenant thereto from the time he had been deprived thereof. current issues, or mention the names of certain candidates for public
office whom he supports. Elective local officials may take part in partisan
SECTION 89. Prohibited Business and Pecuniary political and electoral activities, but it shall be unlawful for them to solicit
Interest. – (a) It shall be unlawful for any local government official or contributions from their subordinates or subject these subordinates to
employee, directly or indirectly, to: any of the prohibited acts under the Omnibus Election Code.
(1) Engage in any business transaction with the local government unit in SECTION 94. Appointment of Elective and Appointive
which he is an official or employee or over which he has the power of Local Officials; Candidates Who Lost in an Election. – (a) No
supervision, or with any of its authorized boards, officials, agents, or elective or appointive local official shall be eligible for appointment or
attorneys, whereby money is to be paid, or property or any other thing designation in any capacity to any public office or position during his
of value is to be transferred, directly or indirectly, out of the resources tenure.
of the local government unit to such person or firm;
Unless otherwise allowed by law or by the primary functions of his
(2) Hold such interests in any cockpit or other games licensed by a local position, no elective or appointive local official shall hold any other office
government unit; or employment in the government or any subdivision, agency or
(3) Purchase any real estate or other property forfeited in favor of such instrumentality thereof, including government-owned or -controlled
local government unit for unpaid taxes or assessment, or by virtue of a corporations or their subsidiaries;
legal process at the instance of the said local government unit; (b) Except for losing candidates in barangay elections, no candidate who
(4) Be a surety for any person contracting or doing business with the lost in any election shall, within one (1) year after such election, be
local government unit for which a surety is required; and appointed to any office in the government or any government-owned or
-controlled corporations or in any of their subsidiaries.
(5) Possess or use any public property of the local government unit for
private purposes. SECTION 95. Additional or Double Compensation. – No
elective or appointive local official or employee shall receive additional,
(b) All other prohibitions governing the conduct of national public officers double, or indirect compensation, unless specifically authorized by law,
relating to prohibited business and pecuniary interest so provided for nor accept without the consent of Congress, any present, emoluments,
under Republic Act Numbered Sixty-seven thirteen (R.A. No. 6713) office, or title of any kind from any foreign government. Pensions or
otherwise known as the “Code of Conduct and Ethical Standards for gratuities shall not be considered as additional, double, or indirect
Public Officials and Employees” and other laws shall also be applicable to compensation.
local government officials and employees.
SECTION 96. Permission to Leave Station. – (a)
SECTION 90. Practice of Profession. – (a) All governors, Provincial, city, municipal, and barangay appointive officials going on
city and municipal mayors are prohibited from practicing their profession official travel shall apply and secure written permission from their
or engaging in any occupation other than the exercise of their functions respective local chief executives before departure. The application shall
as local chief executives. specify the reasons for such travel, and the permission shall be given or
withheld based on considerations of public interest, financial capability
(b) Sanggunian members may practice their professions, engage in any
of the local government unit concerned and urgency of the travel. Should
occupation, or teach in schools except during session hours: Provided,
the local chief executive concerned fail to act upon such application
That sanggunian members who are also members of the Bar shall not:
within four (4) working days from receipt thereof, it shall be deemed
(1) Appear as counsel before any court in any civil case wherein a local approved.
government unit or any office, agency, or instrumentality of the
(b) Mayors of component cities and municipalities shall secure the
government is the adverse party;
permission of the governor concerned for any travel outside the province.
(2) Appear as counsel in any criminal case wherein an officer or employee
(c) Local government officials traveling abroad shall notify their
of the national or local government is accused of an offense committed
respective sanggunian: Provided, That when the period of travel extends
in relation to his office.
to more than three (3) months, during periods of emergency or crisis or
(3) Collect any fee for their appearance in administrative proceedings when the travel involves the use of public funds, permission from the
involving the local government unit of which he is an official; and Office of the President shall be secured.

(4) Use property and personnel of the government except when the (d) Field officers of national agencies or offices assigned in provinces,
sanggunian member concerned is defending the interest of the cities, and municipalities shall not leave their official stations without
government. giving prior written notice to the local chief executive concerned. Such
notice shall state the duration of travel and the name of the officer whom
(c) Doctors of medicine may practice their profession even during official he shall designate to act for and in his behalf during his absence.
hours of work only on occasions of emergency: Provided, That the
officials concerned do not derive monetary compensation therefrom. SECTION 97. Annual Report. – On or before March 31 of
each year, every local chief executive shall submit an annual report to
SECTION 91. Statement of Assets and Liabilities. – (a) the sanggunian concerned on the socio-economic, political and peace
Officials and employees of local government units shall file sworn and order conditions, and other matters concerning the local government
statements of assets, liabilities and net worth, lists of relatives within the unit, which shall cover the immediately preceding calendar year. A copy
fourth civil degree of consanguinity or affinity in government service, of the report shall be forwarded to the Department of the Interior and
financial and business interests, and personnel data sheets as required Local Government. Component cities and municipalities shall likewise
by law. provide the sangguniang panlalawigan copies of their respective annual
SECTION 92. Oath of Office. – (a) All elective and reports.
appointive local officials and employees shall, upon assumption to office,
subscribe to an oath or affirmation of office in the prescribed form. The

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 The Department of Education, Culture and Sports shall consult the local
TITLE IV school board on the appointment of division superintendents, district
LOCAL SCHOOL BOARDS supervisors, school principals, and other school officials.

SECTION 98. Creation, Composition, and SECTION 100. Meetings and Quorum; Budget. – (a) The
Compensation. – (a) There shall be established in every province, city, local school board shall meet at least once a month or as often as may
or municipality a provincial, city, or municipal school board, respectively. be necessary.

(b) The composition of local school boards shall be as follows: (b) Any of the co-chairmen may call a meeting. A majority of all its
members shall constitute a quorum. However, when both co-chairmen
(1) The provincial school board shall be composed of the governor are present in a meeting, the local chief executive concerned, as a matter
and the division superintendent of schools as co-chairman; the of protocol, shall be given preference to preside over the meeting. The
chairman of the education committee of the sangguniang division superintendent, city superintendent or district supervisor, as the
panlalawigan, the provincial treasurer, the representative of the case may be, shall prepare the budget of the school board concerned.
“pederasyon ng mga sangguniang kabataan” in the sangguniang Such budget shall be supported by programs, projects, and activities of
panlalawigan, the duly elected president of the provincial federation the school board for the ensuring fiscal year. The affirmative vote of the
of parents-teachers associations, the duly elected representative of majority of all the members shall be necessary to approve the budget.
the teachers’ organizations in the province, and the duly elected
representative of the non-academic personnel of public schools in the (c) The annual school board budget shall give priority to the following:
province, as members; (1) Construction, repair, and maintenance of school buildings and
(2) The city school board shall be composed of the city mayor and other facilities of public elementary and secondary schools;
the city superintendent of schools as co-chairmen; the chairman of
(2) Establishment and maintenance of extension classes where
the education committee of the sangguniang panlungsod, the city
necessary; and
treasurer, the representative of the “pederasyon ng mga sangguniang
kabataan” in the sangguniang panlungsod, the duly elected president (3) Sports activities at the division, district, municipal, and barangay
of the city federation of parents-teachers associations, the duly levels.
elected representative of the teachers’ organizations in the city, and
the duly elected representative of the non-academic personnel of SECTION 101. Compensation and Remuneration. – The
public schools in the city, as members; and co-chairmen and members of the provincial, city or municipal school
board shall perform their duties as such without compensation or
(3) The municipal school board shall be composed of the municipal remuneration. Members thereof who are not government officials or
mayor and the district supervisor of schools as co-chairmen; the employees shall be entitled to necessary traveling expenses and
chairman of the education committee of the sangguniang bayan, the allowances chargeable against the funds of the local school board
municipal treasurer, the representative of the “pederasyon ng mga concerned, subject to existing accounting and auditing rules and
sangguniang kabataan” in the sangguniang bayan, the duly elected regulations.
president of the municipal federation of parent-teacher associations,
the duly elected representative of the teachers’ organizations in the
municipality, and the duly elected representative of the non-academic TITLE V
personnel of public schools in the municipality, as members. LOCAL HEALTH BOARDS

(c) In the event that a province or city has two (2) or more school SECTION 102. Creation and Composition. – (a) There
superintendents, and in the event that a municipality has two (2) or more shall be established a local health board in every province, city, or
district supervisors, the co-chairman of the local school board shall be municipality. The composition of the local health boards shall be as
determined as follows: follows:

(1) The Department of Education, Culture and Sports shall designate (1) The provincial health board shall be headed by the governor as
the co-chairman for the provincial and city school boards; and chairman, the provincial health officer as vice-chairman, and the
chairman of the committee on health of the sangguniang
(2) The division superintendent of schools shall designate the district panlalawigan, a representative from the private sector or non-
supervisor who shall serve as co-chairman of the municipal school governmental organizations involved in health services, and a
board. representative of the Department of Health in the province, as
(d) The performance of the duties and responsibilities of the members;
abovementioned officials in their respective local school boards shall not (2) The city health board shall be headed by the city mayor as
be delegated. chairman, the city health officer as vice-chairman, and the chairman
SECTION 99. Functions of Local School Boards. – The of the committee on health of the sangguniang panlungsod, a
provincial, city or municipal school board shall: representative from the private sector or non-governmental
organizations involved in health services, and a representative of the
(a) Determine, in accordance with the criteria set by the Department of Department of Health in the city, as members; and
Education, Culture and Sports, the annual supplementary budgetary
needs for the operation and maintenance of public schools within the (3) The municipal health board shall be headed by the municipal
province, city, or municipality, as the case may be, and the mayor as chairman, the municipal health officer as vice-chairman, and
supplementary local cost of meeting such needs, which shall be reflected the chairman of the committee on health of the sangguniang bayan,
in the form of an annual school board budget corresponding to its share a representative from the private sector or non-governmental
of the proceeds of the special levy on real property constituting the organizations involved in health services, and a representative of the
Special Education Fund and such other sources of revenue as this Code Department of Health in the municipality, as members.
and other laws or ordinances may provide; (b) The functions of the local health board shall be:
(b) Authorize the provincial, city or municipal treasurer, as the case may (1) To propose to the sanggunian concerned, in accordance with
be, to disburse funds from the Special Education Fund pursuant to the standards and criteria set by the Department of Health, annual
budget prepared and in accordance with existing rules and regulations; budgetary allocations for the operation and maintenance of health
(c) Serve as an advisory committee to the sanggunian concerned on facilities and services within the municipality, city or province, as the
educational matters such as, but not limited to, the necessity for and the case may be;
uses of local appropriations for educational purposes; and (2) To serve as an advisory committee to the sanggunian concerned
(d) Recommend changes in the names of public schools within the on health matters such as, but not limited to, the necessity for, and
territorial jurisdiction of the local government unit for enactment by the application of, local appropriations for public health purposes; and
sanggunian concerned. (3) Consistent with the technical and administrative standards of the
Department of Health, create committees which shall advise local
Page | 14
 health agencies on matters such as, but not limited to, personnel (3) The congressman or his representative; and
selection and promotion, bids and awards, grievance and complaints,
personnel discipline, budget review, operations review and similar (4) Representatives of non-governmental organizations operating in
functions. the province, who shall constitute not less than one-fourth (¼) of the
members of the fully organized council.
SECTION 103. Meetings and Quorum. – (a) The board
shall meet at least once a month or as may be necessary. (d) The local development councils may call upon any local official
concerned or any official of national agencies or offices in the local
(b) A majority of the members of the board shall constitute a quorum, government unit to assist in the formulation of their respective
but the chairman or the vice-chairman must be present during meetings development plans and public investment programs.
where budgetary proposals are being prepared or considered. The
affirmative vote of all the majority of the members shall be necessary to SECTION 108. Representation of Non-governmental
approve such proposals. Organizations. – Within a period of sixty (60) days from the start of
organization of local development councils, the non-governmental
SECTION 104. Compensation and Remuneration. – The organizations shall choose from among themselves their representatives
chairman, vice-chairman, and members of the provincial, city or to said councils. The local sanggunian concerned shall accredit non-
municipal health board shall perform their duties as such without governmental organizations subject to such criteria as may be provided
compensation or remuneration. Members thereof who are not by law.
government officials or employees shall be entitled to necessary traveling
expenses and allowances chargeable against the funds of the local health SECTION 109. Functions of Local Development
board concerned, subject to existing accounting and auditing rules and Councils. – (a) The provincial, city, and municipal development councils
regulations. shall exercise the following functions:

SECTION 105. Direct National Supervision and Control (1) Formulate long-term, medium-term, and annual socio-economic
by the Secretary of Health. – In cases of epidemics, pestilence, and development plans and policies;
other widespread public health dangers, the Secretary of Health may, (2) Formulate the medium-term and annual public investment
upon the direction of the President and in consultation with the local programs;
government unit concerned, temporarily assume direct supervision and
control over health operations in any local government unit for the (3) Appraise and prioritize socio-economic development programs
duration of the emergency, but in no case exceeding a cumulative period and projects;
of six (6) months. With the concurrence of the local government unit
(4) Formulate local investment incentives to promote the inflow and
concerned, the period for such direct national control and supervision
direction of private investment capital;
may be further extended.
(5) Coordinate, monitor, and evaluate the implementation of
development programs and projects; and
TITLE VI
LOCAL DEVELOPMENT COUNCILS (6) Perform such other functions as may be provided by law or
component authority.
SECTION 106. Local Development Councils. – (a) Each
local government unit shall have a comprehensive multi-sectoral (b) The barangay development council shall exercise the following
development plan to be initiated by its development council and functions:
approved by its sanggunian. For this purpose, the development council
(1) Mobilize people’s participation in local development efforts;
at the provincial, city, municipal, or barangay level, shall assist the
corresponding sanggunian in setting the direction of economic and social (2) Prepare barangay development plans based on local
development, and coordinating development efforts within its territorial requirements;
jurisdiction.
(3) Monitor and evaluate the implementation of national or local
SECTION 107. Composition of Local Development programs and projects; and
Councils. – The composition of the local development council shall be
as follows: (4) Perform such other functions as may be provided by law or
competent authority.
(a) The barangay development council shall be headed by the punong
barangay and shall be composed of the following members: SECTION 110. Meetings and Quorum. – The local
development council shall meet at least once every six (6) months or as
(1) Members of the sangguniang barangay; often as may be necessary.
(2) Representatives of non-governmental organizations operating in SECTION 111. Executive Committee. – (a) Each local
the barangay who shall constitute not less than one fourth (¼) of the development council shall create an executive committee to represent it
members of the fully organized council; and act in its behalf when it is not in session. The composition of the
executive committee shall be as follows:
(3) A representative of the congressman.
(1) The executive committee of the provincial development council
(b) The city or municipal development council shall be headed by the
shall be composed of the government as chairman, the
mayor and shall be composed of the following members:
representative of component city and municipal mayors to be chosen
(1) All punong barangays in the city or municipality; from among themselves, the chairman of the committee on
appropriations of the sangguniang panlalawigan, the president of the
(2) The chairman of the committee on appropriations of the provincial league of barangays, and a representative of non-
sangguniang panlungsod or sangguniang bayan concerned; governmental organizations that are represented in the council, as
(3) The congressman or his representative; and members;

(4) Representatives of non-governmental organizations operating in (2) The executive committee of the city or municipal development
the city or municipality, as the case may be, who shall constitute not council shall be composed of the mayor as chairman, the chairman of
less than one-fourth (¼) of the members of the fully organized the committee on appropriations of the sangguniang panlalawigan,
council. the president of the city or municipal league of barangays, and a
representative of non-governmental organizations that are
(c) The provincial development council shall be headed by the governor represented in the council, as members; and
and shall be composed of the following members:
(3) The executive committee of the barangay development council
(1) All mayors of component cities and municipalities; shall be composed of the punong barangay as chairman, a
representative of the sangguniang barangay to be chosen from
(2) The chairman of the committee on appropriations of the
sangguniang panlalawigan;
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 among its members, and a representative of non-governmental SECTION 118. Jurisdictional Responsibility for
organizations that are represented in the council, as members. Settlement of Boundary Dispute. – Boundary disputes between and
among local government units shall, as much as possible, be settled
(b) The executive committee shall exercise the following powers and amicably. To this end:
functions:
(a) Boundary disputes involving two (2) or more barangays in the same
(1) Ensure that the decision of the council are faithfully carried out city or municipality shall be referred for settlement to the sangguniang
and implemented; panlungsod or sangguniang bayan concerned.
(2) Act on matters requiring immediate attention or action by the (b) Boundary disputes involving two (2) or more municipalities within the
council; same province shall be referred for settlement to the sangguniang
(3) Formulate policies, plans, and programs based on the general panlalawigan concerned.
principles laid down by the council; and (c) Boundary disputes involving municipalities or component cities of
(4) Act on other matters that may be authorized by the council. different provinces shall be jointly referred for settlement to the
sanggunians of the provinces concerned.
SECTION 112. Sectoral or Functional Committees. –
The local development councils may form sectoral or functional (d) Boundary disputes involving a component city or municipality on the
committees to assist them in the performance of their functions. one hand and a highly urbanized city on the other, or two (2) or more
highly urbanized cities, shall be jointly referred for settlement to the
SECTION 113. Secretariat. – There is hereby constituted respective sanggunians of the parties.
for each local development council a secretariat which shall be
responsible for providing technical support, documentation of (e) In the event the sanggunian fails to effect an amicable settlement
proceedings, preparation of reports and such other assistance as may be within sixty (60) days from the date the dispute was referred thereto, it
required in the discharge of its functions. The local development council shall issue a certification to that effect. Thereafter, the dispute shall be
may avail of the services of any non-governmental organization or formally tried by the sanggunian concerned which shall decide the issue
educational or research institution for this purpose. within sixty (60) days from the date of the certification referred to above.

The secretariats of the provincial, city, and municipal development SECTION 119. Appeal. – Within the time and manner
councils shall be headed by their respective planning and development prescribed by the Rules of Court, any party may elevate the decision of
coordinators. The secretariat of the barangay development council shall the sanggunian concerned to the proper Regional Trial Court having
be headed by the barangay secretary who shall be assisted by the city jurisdiction over the area in dispute. The Regional Trial Court shall decide
or municipal planning and development coordinator concerned. the appeal within one (1) year from the filing thereof. Pending final
resolution of the disputed area prior to the dispute shall be maintained
SECTION 114. Relation of Local Development Councils and continued for all legal purposes.
to the Sanggunian and the Regional Development Council. – (a)
The policies, programs, and projects proposed by local development
councils shall be submitted to the sanggunian concerned for appropriate CHAPTER II
action. LOCAL INITIATIVE AND REFERENDUM
The local development plans approved by their respective sanggunian SECTION 120. Local Initiative Defined. – Local initiative
may be integrated with the development plans of the next higher level is the legal process whereby the registered voters of a local government
of local development council. unit may directly propose, enact, or amend any ordinance.
(b) The approved development plans of provinces, highly-urbanized SECTION 121. Who May Exercise. – The power of local
cities, and independent component cities shall be submitted to the initiative and referendum may be exercised by all registered voters of the
regional development council, which shall be integrated into the regional provinces, cities, municipalities, and barangays.
development plan for submission to the National Economic and
SECTION 122. Procedure in Local Initiative. – (a) Not
Development Authority, in accordance with existing laws.
less than one thousand (1,000) registered voters in case of provinces
SECTION 115. Budget Information. – The Department of and cities, one hundred (100) in case of municipalities, and fifty (50) in
Budget and Management shall furnish the various local development case of barangays, may file a petition with the sanggunian concerned
councils information on financial resources and budgetary allocations proposing the adoption, enactment, repeal, or amendment of an
applicable to their respective jurisdictions to guide them in their planning ordinance.
functions.
(b) If no favorable action thereon is taken by the sanggunian concerned
TITLE VII within thirty (30) days from its presentation, the proponents, through
their duly authorized and registered representatives, may invoke their
Local Peace and Order Council power of initiative, giving notice thereof to the sanggunian concerned.
SECTION 116. Organization. – There is hereby established in every (c) The proposition shall be numbered serially starting from Roman
province, city and municipality a local peace and order council, pursuant numeral I. The COMELEC or its designated representative shall extend
to Executive Order Numbered Three hundred nine (E.O. No. 309), as assistance in the formulation of the proposition.
amended, Series of 1988.
(d) Two (2) or more propositions may be submitted in an initiative.
The local peace and order councils shall have the same composition and
functions as those prescribed by said executive order. (e) Proponents shall have ninety (90) days in case of provinces and cities,
sixty (60) days in case of municipalities, and thirty (30) days in case of
TITLE VIII barangays, from notice mentioned in subsection (b) hereof to collect the
Autonomous Special Economic Zones required number of signatures.

SECTION 117. Establishment of Autonomous Special Economic Zones. – (f) The petition shall be signed before the election registrar, or his
The establishment by law of autonomous special economic zones in designated representatives, in the presence of a representative of the
selected areas of the country shall be subject to concurrence by the local proponent, and a representative of the sanggunian concerned in a public
government units included therein. place in the local government unit, as the case may be. Stations for
collecting signatures may be established in as many places as may be
TITLE IX warranted.
Other Provisions Applicable to Local Government Units (g) Upon the lapse of the period herein provided, the COMELEC, through
its office in the local government unit concerned, shall certify as to
CHAPTER I
whether or not the required number of signatures has been obtained.
Settlement of Boundary Disputes Failure to obtain the required number defeats the proposition.

Page | 16
(h) If the required number of signatures is obtained, the COMELEC shall (a) Taxation shall be uniform in each local government unit;
then set a date for the initiative during which the proposition shall be
submitted to the registered voters in the local government unit (b) Taxes, fees, charges and other impositions shall:
concerned for their approval within sixty (60) days from the date of (1) be equitable and based as far as practicable on the taxpayer’s
certification by the COMELEC, as provided in subsection (g) hereof, in ability to pay;
case of provinces and cities, forty-five (45) days in case of municipalities,
and thirty (30) days in case of barangays. The initiative shall then be (2) be levied and collected only for public purposes;
held on the date set, after which the results thereof shall be certified and
(3) not be unjust, excessive, oppressive, or confiscatory;
proclaimed by the COMELEC.
(4) not be contrary to law, public policy, national economic policy, or
SECTION 123. Effectivity of Local Propositions. – If the
in restraint of trade;
proposition is approved by a majority of the votes cast, it shall take effect
fifteen (15) days after certification by the COMELEC as if affirmative (c) The collection of local taxes, fees, charges and other impositions shall
action thereon had been made by the sanggunian and local chief in no case be let to any private person;
executive concerned. If it fails to obtain said number of votes, the
proposition is considered defeated. (d) The revenue collected pursuant to the provisions of this Code shall
inure solely to the benefit of, and be subject to the disposition by, the
SECTION 124. Limitations on Local Initiative. – (a) The local government unit levying the tax, fee, charge or other imposition
power of local initiative shall not be exercised more than once a year. unless otherwise specifically provided herein; and,
(b) Initiative shall extend only to subjects or matters which are within (e) Each local government unit shall, as far as practicable, evolve a
the legal powers of the sanggunian to enact. progressive system of taxation.
(c) If at any time before the initiative is held, the sanggunian concerned SECTION 131. Definition of Terms. – When used in this
adopts in toto the proposition presented and the local chief executive Title, the term:
approves the same, the initiative shall be cancelled. However, those
against such action may, if they so desire, apply for initiative in the (a) “Agricultural Product” includes the yield of the soil, such as corn, rice,
manner herein provided. wheat, rye, hay, coconuts, sugarcane, tobacco, root crops, vegetables,
fruits, flowers, and their by-products; ordinary salt; all kinds of fish;
SECTION 125. Limitations upon Sanggunians. – Any poultry; and livestock and animal products, whether in their original
proposition or ordinance approved through the system of initiative and form or not.
referendum as herein provided shall not be repealed, modified or
amended by the sanggunian concerned within six (6) months from the The phrase “whether in their original form or not” refers to the
date of the approval thereof, and may be amended, modified or repealed transformation of said products by the farmer, fisherman, producer or
by the sanggunian within three (3) years thereafter by a vote of three- owner through the application of processes to preserve or otherwise to
fourths (3/4) of all its members: Provided, That in case of barangays, the prepare said products for market such as freezing, drying, salting,
period shall be eighteen (18) months after the approval thereof. smoking, or stripping for purposes of preserving or otherwise preparing
said products for market;
SECTION 126. Local Referendum Defined. – Local
referendum is the legal process whereby the registered voters of the local (b) “Amusement” is a pleasurable diversion and entertainment. It is
government units may approve, amend or reject any ordinance enacted synonymous to relaxation, avocation, pastime, or fun;
by the sanggunian. (c) “Amusement Places” include theaters, cinemas, concert halls, circuses
The local referendum shall be held under the control and direction of the and other places of amusement where one seeks admission to entertain
COMELEC within sixty (60) days in case of provinces and cities, forty-five oneself by seeing or viewing the show or performances;
(45) days in case of municipalities and thirty (30) days in case of (d) “Business” means trade or commercial activity regularly engaged in
barangays. as a means of livelihood or with a view to profit;
The COMELEC shall certify and proclaim the results of the said (e) “Banks and other financial institutions” include non-bank financial
referendum. intermediaries, lending investors, finance and investment companies,
SECTION 127. Authority of Courts. – Nothing in this pawnshops, money shops, insurance companies, stock markets, stock
Chapter shall prevent or preclude the proper courts from declaring null brokers and dealers in securities and foreign exchange, as defined under
and void any proposition approved pursuant to this Chapter for violation applicable laws, or rules and regulations thereunder;
of the Constitution or want of capacity of the sanggunian concerned to (f) “Capital Investment” is the capital which a person employs in any
enact the said measure. undertaking, or which he contributes to the capital of a partnership,
corporation, or any other juridical entity or association in a particular
BOOK II taxing jurisdiction;
LOCAL TAXATION AND FISCAL MATTERS (g) “Charges” refers to pecuniary liability, as rents or fees against
persons or property;
TITLE I
(h) “Contractor” includes persons, natural or juridical, not subject to
LOCAL GOVERNMENT TAXATION
professional tax under Section 139 of this Code, whose activity consists
essentially of the sale of all kinds of services for a fee, regardless of
CHAPTER I whether or not the performance of the service calls for the exercise or
GENERAL PROVISIONS use of the physical or mental faculties of such contractor or his
employees.
SECTION 128. Scope. – The provisions herein shall govern
the exercise by provinces, cities, municipalities, and barangays of their As used in this section, the term “contractor” shall include general
taxing and other revenue-raising powers. engineering, general building and specialty contractors as defined under
applicable laws; filling, demolition and salvage works contractors;
SECTION 129. Power to Create Sources of Revenue. –
proprietors or operators of mine drilling apparatus; proprietors or
Each local government unit shall exercise its power to create its own
operators of dockyards; persons engaged in the installation of water
sources of revenue and to levy taxes, fees, and charges subject to the
system, and gas or electric light, heat, or power; proprietors or operators
provisions herein, consistent with the basic policy of local autonomy.
of smelting plants, engraving, plating, and plastic lamination
Such taxes, fees, and charges shall accrue exclusively to the local
establishments; proprietors or operators of establishments for repairing,
government units.
repainting, upholstering, washing or greasing of vehicles, heavy
SECTION 130. Fundamental Principles. – The following equipment, vulcanizing, recapping and battery charging; proprietors or
fundamental principles shall govern the exercise of the taxing and other operators of furniture shops and establishments for planing or surfacing
revenue-raising powers of local government units: and recutting of lumber, and sawmills under contract to saw or cut logs
Page | 17
belonging to others; proprietors or operators of dry cleaning or dyeing or combines the same to produce such finished products for the purpose
establishments, steam laundries, and laundries using washing machines; of their sale or distribution to others and not for his own use or
proprietors or owners of shops for the repair of any kind of mechanical consumption;
and electrical devices, instruments, apparatus, or furniture and shoe
repairing by machine or any mechanical contrivance; proprietors or (p) “Marginal Farmer or Fisherman” refers to an individual engaged in
operators of establishments or lots for parking purposes; proprietors or subsistence farming or fishing which shall be limited to the sale, barter
operators of tailor shops, dress shops, milliners and hatters, beauty or exchange of agricultural or marine products produced by himself and
parlors, barbershops, massage clinics, sauna, Turkish and Swedish baths, his immediate family;
slenderizing and building salons and similar establishments; (q) “Motor Vehicle” means any vehicle propelled by any power other than
photographic studios; funeral parlors; proprietors or operators of hotels, muscular power using the public roads, but excluding road rollers, trolley
motels, and lodging houses; proprietors or operators of arrastre and cars, street-sweepers, sprinklers, lawn mowers, bulldozers, graders,
stevedoring, warehousing, or forwarding establishments; master fork-lifts, amphibian trucks, and cranes if not used on public roads,
plumbers, smiths, and house or sign painters; printers, bookbinders, vehicles which run only on rails or tracks, and tractors, trailers, and
lithographers; publishers except those engaged in the publication or traction engines of all kinds used exclusively for agricultural purposes;
printing of any newspaper, magazine, review or bulletin which appears
at regular intervals with fixed prices for subscription and sale and which (r) “Municipal Waters” includes not only streams, lakes, and tidal waters
is not devoted principally to the publication and advertisements; business within the municipality, not being the subject of private ownership and
agents, private detective or watchman agencies, commercial and not comprised within the national parks, public forest, timber lands,
immigration brokers, and cinematographic film owners, lessors and forest reserves or fishery reserves, but also marine waters included
distributors. between two lines drawn perpendicularly to the general coastline from
points where the boundary lines of the municipality or city touch the sea
(i) “Corporation” includes partnerships, no matter how created or at low tide and a third line parallel with the general coastline and fifteen
organized, joint-stock companies, joint accounts (cuentas en (15) kilometers from it. Where two (2) municipalities are so situated on
participacion), associations or insurance companies but does not include the opposite shores that there is less than fifteen (15) kilometers of
general professional partnerships and a joint venture or consortium marine waters between them, the third line shall be equally distant from
formed for the purpose of undertaking construction projects or engaging opposite shores of their respective municipalities;
in petroleum, coal, geothermal, and other energy operations pursuant to
an operating or consortium agreement under a service contract with the (s) “Operator” includes the owner, manager, administrator, or any other
government. General professional partnerships are partnerships formed person who operates or is responsible for the operation of a business
by persons for the sole purpose of exercising their common profession, establishment or undertaking;
no part of the income of which is derived from engaging in any trade or
(t) “Peddler” means any person who, either for himself or on commission,
business.
travels from place to place and sells his goods or offers to sell and deliver
The term “resident foreign” when applied to a corporation means a the same. Whether a peddler is a wholesale peddler or a retail peddler
foreign corporation not otherwise organized under the laws of the of a particular commodity shall be determined from the definition of
Philippines but engaged in trade or business within the Philippines; wholesale dealer or retail dealer as provided in this Title;

(j) “Countryside and Barangay Business Enterprise” refers to any (u) “Persons” means every natural or juridical being, susceptible of rights
business entity, association, or cooperative registered under the and obligations or of being the subject of legal relations;
provisions of Republic Act Numbered Sixty-eight hundred ten (R.A. No.
(v) “Residents” refer to natural persons who have their habitual residence
6810), otherwise known as “Magna Carta For Countryside And Barangay
in the province, city, or municipality where they exercise their civil rights
Business Enterprises (Kalakalan 20)”;
and fulfill their civil obligations, and to juridical persons for which the law
(k) “Dealer” means one whose business is to buy and sell merchandise, or any other provision creating or recognizing them fixes their residence
goods, and chattels as a merchant. He stands immediately between the in a particular province, city, or municipality. In the absence of such law,
producer or manufacturer and the consumer and depends for his profit juridical persons are residents of the province, city, or municipality where
not upon the labor he bestows upon his commodities but upon the skill they have their legal residence or principal place of business or where
and foresight with which he watches the market; they conduct their principal business or occupation;

(l) “Fee” means a charge fixed by law or ordinance for the regulation or (w) “Retail” means a sale where the purchaser buys the commodity for
inspection of a business or activity; his own consumption, irrespective of the quantity of the commodity sold;

(m) “Franchise” is a right or privilege, affected with public interest which (x) “Vessel” includes every type of boat, craft, or other artificial
is conferred upon private persons or corporations, under such terms and contrivance used, or capable of being used, as a means of transportation
conditions as the government and its political subdivisions may impose on water;
in the interest of public welfare, security, and safety;
(y) “Wharfage” means a fee assessed against the cargo of a vessel
(n) “Gross Sales or Receipts” include the total amount of money or its engaged in foreign or domestic trade based on quantity, weight, or
equivalent representing the contract price, compensation or service fee, measure received and/or discharged by vessel; and
including the amount charged or materials supplied with the services and
(z) “Wholesale” means a sale where the purchaser buys or imports the
deposits or advance payments actually or constructively received during
commodities for resale to persons other than the end user regardless of
the taxable quarter for the services performed or to be performed for
the quantity of the transaction.
another person excluding discounts if determinable at the time of sales,
sales return, excise tax, and value-added tax (VAT); SECTION 132. Local Taxing Authority. – The power to
impose a tax, fee, or charge or to generate revenue under this Code shall
(o) “Manufacturer” includes every person who, by physical or chemical
be exercised by the sanggunian of the local government unit concerned
process, alters the exterior texture or form or inner substance of any raw
through an appropriate ordinance.
material or manufactured or partially manufactured product in such
manner as to prepare it for special use or uses to which it could not have SECTION 133. Common Limitations on the Taxing
been put in its original condition, or who by any such process, alters the Powers of Local Government Units. – Unless otherwise provided
quality of any such raw material or manufactured or partially herein, the exercise of the taxing powers of provinces, cities,
manufactured products so as to reduce it to marketable shape or prepare municipalities, and barangays shall not extend to the levy of the
it for any of the use of industry, or who by any such process, combines following:
any such raw material or manufactured or partially manufactured
products with other materials or products of the same or of different (a) Income tax, except when levied on banks and other financial
kinds and in such manner that the finished products of such process or institutions;
manufacture can be put to a special use or uses to which such raw (b) Documentary stamp tax;
material or manufactured or partially manufactured products in their
original condition could not have been put, and who in addition, alters (c) Taxes on estates, inheritance, gifts, legacies and other acquisitions
such raw material or manufactured or partially manufactured products, morris causa, except as otherwise provided herein;
Page | 18
(d) Customs duties, registration fees of vessel and wharfage on wharves, the date of the execution of the deed or from the date of the decedent’s
tonnage dues, and all other kinds of customs fees, charges and dues death.
except wharfage on wharves constructed and maintained by the local
government unit concerned; SECTION 136. Tax on Business of Printing and
Publication. – The province may impose a tax on the business of
(e) Taxes, fees, and charges and other impositions upon goods carried persons engaged in the printing and/or publication of books, cards,
into or out of, or passing through, the territorial jurisdictions of local posters, leaflets, handbills, certificates, receipts, pamphlets, and others
government units in the guise of charges for wharfage, tolls for bridges of similar nature, at a rate not exceeding fifty percent (50%) of one
or otherwise, or other taxes, fees, or charges in any form whatsoever percent (1%) of the gross annual receipts for the preceding calendar
upon such goods or merchandise; year.
(f) Taxes, fees or charges on agricultural and aquatic products when sold In the case of a newly started business, the tax shall not exceed one-
by marginal farmers or fishermen; twentieth (1/20) of one percent (1%) of the capital investment. In the
succeeding calendar year, regardless of when the business started to
(g) Taxes on business enterprises certified to by the Board of operate, the tax shall be based on the gross receipts for the preceding
Investments as pioneer or non-pioneer for a period of six (6) and four calendar year, or any fraction thereof, as provided herein.
(4) years, respectively from the date of registration;
The receipts from the printing and/or publishing of books or other
(h) Excise taxes on articles enumerated under the National Internal reading materials prescribed by the Department of Education, Culture
Revenue Code, as amended, and taxes, fees or charges on petroleum and Sports as school texts or references shall be exempt from the tax
products; herein imposed.
(i) Percentage or value-added tax (VAT) on sales, barters or exchanges SECTION 137. Franchise Tax. – Notwithstanding any
or similar transactions on goods or services except as otherwise provided exemption granted by any law or other special law, the province may
herein; impose a tax on businesses enjoying a franchise, at a rate not exceeding
(j) Taxes on the gross receipts of transportation contractors and persons fifty percent (50%) of one percent (1%) of the gross annual receipts for
engaged in the transportation of passengers or freight by hire and the preceding calendar year based on the incoming receipt, or realized,
common carriers by air, land or water, except as provided in this Code; within its territorial jurisdiction.

(k) Taxes on premiums paid by way of reinsurance or retrocession; In the case of a newly started business, the tax shall not exceed one-
twentieth (1/20) of one percent (1%) of the capital investment. In the
(l) Taxes, fees or charges for the registration of motor vehicles and for succeeding calendar year, regardless of when the business started to
the issuance of all kinds of licenses or permits for the driving thereof, operate, the tax shall be based on the gross receipts for the preceding
except tricycles; calendar year, or any fraction thereon, as provided herein.
(m) Taxes, fees, or other charges on Philippine products actually SECTION 138. Tax on Sand, Gravel and Other Quarry
exported, except as otherwise provided herein; Resources. – The province may levy and collect not more than ten
percent (10%) of fair market value in the locality per cubic meter of
(n) Taxes, fees, or charges, on Countryside and Barangay Business
ordinary stones, sand, gravel, earth, and other quarry resources, as
Enterprises and cooperatives duly registered under R.A. No. 6810 and
defined under the National Internal Revenue Code, as amended,
Republic Act Numbered Sixty-nine hundred thirty-eight (R.A. No. 6938)
extracted from public lands or from the beds of seas, lakes, rivers,
otherwise known as the “Cooperative Code of the Philippines”
streams, creeks, and other public waters within its territorial jurisdiction.
respectively; and
The permit to extract sand, gravel and other quarry resources shall be
(o) Taxes, fees or charges of any kind on the National Government, its
issued exclusively by the provincial governor, pursuant to the ordinance
agencies and instrumentalities, and local government units.
of the sangguniang panlalawigan.
The proceeds of the tax on sand, gravel and other quarry resources shall
CHAPTER II be distributed as follows:
SPECIFIC PROVISIONS ON THE TAXING AND OTHER
REVENUE-RAISING POWERS OF LOCAL GOVERNMENT UNITS (1) Province – Thirty percent (30%);
(2) Component City or Municipality where the sand, gravel, and other
ARTICLE I quarry resources are extracted – Thirty percent (30%); and
PROVINCES
(3) Barangay where the sand, gravel, and other quarry resources are
SECTION 134. Scope of Taxing Powers. – Except as extracted – Forty percent (40%).
otherwise provided in this Code, the province may levy only the taxes,
fees, and charges as provided in this Article. SECTION 139. Professional Tax. – (a) The province may
levy an annual professional tax on each person engaged in the exercise
SECTION 135. Tax on Transfer of Real Property or practice of his profession requiring government examination at such
Ownership. – (a) The province may impose a tax on the sale , donation, amount and reasonable classification as the sangguniang panlalawigan
barter, or on any other mode of transferring ownership or title of real may determine but shall in no case exceed Three hundred pesos
property at the rate of not more than fifty percent (50%) of the one (P300.00).
percent (1%) of the total consideration involved in the acquisition of the
property or of the fair market value in case the monetary consideration (b) Every person legally authorized to practice his profession shall pay
involved in the transfer is not substantial, whichever is higher. The sale, the professional tax to the province where he practices his profession or
transfer or other disposition of real property pursuant to R.A. No. 6657 where he maintains his principal office in case he practices his profession
shall be exempt from this tax. in several places: Provided, however, That such person who has paid the
corresponding professional tax shall be entitled to practice his profession
(b) For this purpose, the Register of Deeds of the province concerned in any part of the Philippines without being subjected to any other
shall, before registering any deed, require the presentation of the national or local tax, license, or fee for the practice of such profession.
evidence of payment of this tax. The provincial assessor shall likewise
make the same requirement before cancelling an old tax declaration and (c) Any individual or corporation employing a person subject to
issuing a new one in place thereof. Notaries public shall furnish the professional tax shall require payment by that person of the tax on his
provincial treasurer with a copy of any deed transferring ownership or profession before employment and annually thereafter.
title to any real property within thirty (30) days from the date of
(d) The professional tax shall be payable annually, on or before the thirty-
notarization.
first (31st) day of January. Any person first beginning to practice a
It shall be the duty of the seller, donor, transferor, executor or profession after the month of January must, however, pay the full tax
administrator to pay the tax herein imposed within sixty (60) days from before engaging therein. A line of profession does not become exempt
even if conducted with some other profession for which the tax has been

Page | 19
paid. Professionals exclusively employed in the government shall be
exempt from the payment of this tax. 100,000.00 or more but less than 150,000.00 2,200.00

(e) Any person subject to the professional tax shall write in deeds, 150,000.00 or more but less than 200,000.00 2,750.00
receipts, prescriptions, reports, books of account, plans and designs,
surveys and maps, as the case may be, the number of the official receipt 200,000.00 or more but less than 300,000.00 3,850.00
issued to him. 300,000.00 or more but less than 500,000.00 5,500.00
SECTION 140. Amusement Tax. – (a) The province may
500,000.00 or more but less than 750,000.00 8,000.00
levy an amusement tax to be collected from the proprietors, lessees, or
operators of theaters, cinemas, concert halls, circuses, boxing stadia, and 750,000.00 or more but less than 1,000,000.00 10,000.00
other places of amusement at a rate of not more than ten percent (10%)
of the gross receipts from admission fees. 1,000,000.00 or more but less than 2,000,000.00 13,750.00
(b) In the case of theaters or cinemas, the tax shall first be deducted and 2,000,000.00 or more but less than 3,000,000.00 16,500.00
withheld by their proprietors, lessees, or operators and paid to the
provincial treasurer before the gross receipts are divided between said 3,000,000.00 or more but less than 4,000,000.00 19,800.00
proprietors, lessees, or operators and the distributors of the
cinematographic films. 4,000,000.00 or more but less than 5,000,000.00 23,100.00

(c) The holding of operas, concerts, dramas, recitals, painting and art 5,000,000.00 or more but less than 6,500,000.00 24,375.00
exhibitions, flower shows, musical programs, literary and oratorical
presentations, except pop, rock, or similar concerts shall be exempt from 6,500,000.00 or more at a rate
the payment of the tax herein imposed. not
exceeding
(d) The sangguniang panlalawigan may prescribe the time, manner, thirty-seven
terms and conditions for the payment of tax. In case of fraud or failure and a half
to pay the tax, the sangguniang panlalawigan may impose such percent
surcharges, interests and penalties as it may deem appropriate. (37½%) of
one percent
(e) The proceeds from the amusement tax shall be shared equally by the
(1%)
province and the municipality where such amusement places are located.
SECTION 141. Annual Fixed Tax For Every Delivery (b) On wholesalers, distributors, or dealers in any article of commerce
Truck or Van of Manufacturers or Producers, Wholesalers of, of whatever kind or nature in accordance with the following schedule:
Dealers, or Retailers in, Certain Products. – (a) The province may
levy an annual fixed tax for every truck, van or any vehicle used by Amount of
manufacturers, producers, wholesalers, dealers or retailers in the With gross sales or receipts for Tax Per
delivery or distribution of distilled spirits, fermented liquors, soft drinks, thepreceding calendar year in the Annum
cigars and cigarettes, and other products as may be determined by the amount of:
sangguniang panlalawigan, to sales outlets, or consumers, whether
directly or indirectly, within the province in an amount not exceeding Five Less than P1,000.00 P18.00
hundred pesos (P500.00).
P1,000.00 or more but less than P2,000.00 33.00
(b) The manufacturers, producers, wholesalers, dealers and retailers
referred to in the immediately foregoing paragraph shall be exempt from 2,000.00 or more but less than 3,000.00 50.00
the tax on peddlers prescribed elsewhere in this Code.
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

ARTICLE II
Municipalities 5,000.00 or more but less than 6,000.00 121.00
SECTION 142. Scope of Taxing Powers. – Except as 6,000.00 or more but less than 7,000.00 143.00
otherwise provided in this Code, municipalities may levy taxes, fees, and
charges not otherwise levied by provinces. 7,000.00 or more but less than 8,000.00 165.00
SECTION 143. Tax on Business. – The municipality may 8,000.00 or more but less than 10,000.00 187.00
impose taxes on the following businesses:
10,000.00 or more but less than 15,000.00 220.00
(a) On manufacturers, assemblers, repackers, processors, brewers,
distillers, rectifiers, and compounders of liquors, distilled spirits, and 15,000.00 or more but less than 20,000.00 275.00
wines or manufacturers of any article of commerce of whatever kind or
nature, in accordance with the following schedule: 20,000.00 or more but less than 30,000.00 330.00
Amount of
With gross sales or receipts for Tax Per 30,000.00 or more but less than 40,000.00 440.00
thepreceding calendar year in the Annum
amount of: 40,000.00 or more but less than 50,000.00 660.00

Less than P10,000.00 P165.00 50,000.00 or more but less than 75,000.00 990.00

P10,000.00 or more but less than 15,000.00 220.00 75,000.00 or more but less than 100,000.00 1,320.00

15,000.00 or more but less than 20,000.00 302.00 100,000.00 or more but less than 150,000.00 1,870.00

20,000.00 or more but less than 30,000.00 440.00 150,000.00 or more but less than 200,000.00 2,420.00

30,000.00 or more but less than 40,000.00 660.00 200,000.00 or more but less than 300,000.00 3,300.00

40,000.00 or more but less than 50,000.00 825.00 300,000.00 or more but less than 500,000.00 4,400.00

50,000.00 or more but less than 75,000.00 1,320.00 500,000.00 or more but less than 750,000.00 6,600.00

75,000.00 or more but less than 100,000.00 1,650.00 750,000.00 or more but less than 1,000,000.00 8,800.00

Page | 20
 1,000,000.00 or more but less than 2,000,000.00 10,000.00 400,000.00 or more but less than 500,000.00 8,250.00

2,000,000.00 or more at a rate 500,000.00 or more but less than 750,000.00 9,250.00
not
exceeding 750,000.00 or more but less than 1,000,000.00 10,250.00
fifty percent
1,000,000.00 or more but less than 2,000,000.00 11,500.00
(50%) of
one percent 2,000,000.00 or more at a rate
(1 %). not
exceeding
(c) On exporters, and on manufacturers, millers, producers, wholesalers,
fifty percent
distributors, dealers or retailers of essential commodities enumerated
(50%) of
hereunder at a rate not exceeding one-half (½) of the rates prescribed
one percent
under subsection (a), (b) and (d) of this Section:
(1%)
(1) Rice and corn;
(f) On banks and other financial institutions, at a rate not exceeding fifty
(2) Wheat or cassava flour, meat, dairy products, locally percent (50%) of one percent (1%) on the gross receipts of the
manufactured, processed or preserved food, sugar, salt and other preceding calendar year derived from interest, commissions and
agricultural, marine, and fresh water products, whether in their discounts from lending activities, income from financial leasing,
original state or not; dividends, rentals on property and profit from exchange or sale of
property, insurance premium.
(3) Cooking oil and cooking gas;
(g) On peddlers engaged in the sale of any merchandise or article of
(4) Laundry soap, detergents, and medicine;
commerce, at a rate not exceeding Fifty pesos (P50.00) per peddler
(5) Agricultural implements, equipment and post-harvest facilities, annually.
fertilizers, pesticides, insecticides, herbicides and other farm inputs;
(h) On any business, not otherwise specified in the preceding
(6) Poultry feeds and other animal feeds; paragraphs, which the sanggunian concerned may deem proper to tax:
Provided, That on any business subject to the excise, value-added or
(7) School supplies; and percentage tax under the National Internal Revenue Code, as amended,
(8) Cement. the rate of tax shall not exceed two percent (2%) of gross sales or
receipts of the preceding calendar year.
(d) On retailers.
The sanggunian concerned may prescribe a schedule of graduated tax
With gross sales or receiptsfor the Rate of TaxPer rates but in no case to exceed the rates prescribed herein.
preceding calendar year of: Annum
SECTION 144. Rates of Tax within the Metropolitan
P400,000.00 or less 2% Manila Area. – The municipalities within the Metropolitan Manila Area
may levy taxes at rates which shall not exceed by fifty percent (50%)
more than P400,000.00 1% the maximum rates prescribed in the preceding section.

Provided, however, That barangays shall have the exclusive power to SECTION 145. Retirement of Business. – A business
levy taxes, as provided under Section 152 hereof, on gross sales or subject to tax pursuant to the preceding sections shall, upon termination
receipts of the preceding calendar year of Fifty thousand pesos thereof, submit a sworn statement of its gross sales or receipts for the
(P50,000.00) or less, in the case of cities, and Thirty thousand pesos current year. If the tax paid during the year be less than the tax due on
(P30,000.00) or less, in the case of municipalities. said gross sales or receipts of the current year, the difference shall be
paid before the business is considered officially retired.
(e) On contractors and other independent contractors, in accordance
with the following schedule: SECTION 146. Payment of Business Taxes. – (a) The
taxes imposed under Section 143 shall be payable for every separate or
With gross receipts for the distinct establishment or place where business subject to the tax is
preceding calendar year in the Amount of Tax Per Annum conducted and one line of business does not become exempt by being
amount of: conducted with some other businesses for which such tax has been paid.
The tax on a business must be paid by the person conducting the same.
Less than P5,000.00 P27.50
(b) In cases where a person conducts or operates two (2) or more of the
P5,000.00 or more but less than P10,000.00 61.60 businesses mentioned in Section 143 of this Code which are subject to
the same rate of tax, the tax shall be computed on the combined total
10,000.00 or more but less than 15,000.00 104.50 gross sales or receipts of the said two (2) or more related businesses.
15,000.00 or more but less than 20,000.00 165.00 (c) In cases where a person conducts or operates two (2) or more
businesses mentioned in Section 143 of this Code which are subject to
20,000.00 or more but less than 30,000.00 275.00 different rates of tax, the gross sales or receipts of each business shall
be separately reported for the purpose of computing the tax due from
30,000.00 or more but less than 40,000.00 385.00
each business.
40,000.00 or more but less than 50,000.00 550.00 SECTION 147. Fees and Charges. – The municipality may
50,000.00 or more but less than 75,000.00 880.00 impose and collect such reasonable fees and charges on business and
occupation and, except as reserved to the province in Section 139 of this
75,000.00 or more but less than 100,000.00 1,320.00 Code, on the practice of any profession or calling, commensurate with
the cost of regulation, inspection and licensing before any person may
100,000.00 or more but less than 150,000.00 1,980.00 engage in such business or occupation, or practice such profession or
calling.
150,000.00 or more but less than 200,000.00 2,640.00
SECTION 148. Fees for Sealing and Licensing of
200,000.00 or more but less than 250,000.00 3,630.00 Weights and Measures. – (a) The municipality may levy fees for the
sealing and licensing of weights and measures at such reasonable rates
250,000.00 or more but less than 300,000.00 4,620.00 as shall be prescribed by the sangguniang bayan.
300,000.00 or more but less than 400,000.00 6,160.00

Page | 21
(b) The sangguniang bayan shall prescribe the necessary regulations for (2) Forty percent (40%) to the city or municipality where the
the use of such weights and measures, subject to such guidelines as shall plantation is located.
be prescribed by the Department of Science and Technology. The
sanggunian concerned shall, by appropriate ordinance, penalize (d) In cases where a manufacturer, assembler, producer, exporter or
fraudulent practices and unlawful possession or use of instruments of contractor has two (2) or more factories, project offices, plants, or
weights and measures and prescribe the criminal penalty therefor in plantations located in different localities, the seventy percent (70%) sales
accordance with the provisions of this Code. Provided, however, That the allocation mentioned in subparagraph (b) of subsection (2) above shall
sanggunian concerned may authorize the municipal treasurer to settle an be prorated among the localities where the factories, project offices,
offense not involving the commission of fraud before a case therefor is plants, and plantations are located in proportion to their respective
filed in court, upon payment of a compromise penalty of not less than volumes of production during the period for which the tax is due.
Two hundred pesos (P200.00). (e) The foregoing sales allocation shall be applied irrespective of whether
SECTION 149. Fishery Rentals, Fees and Charges. – (a) or not sales are made in the locality where the factory, project office,
Municipalities shall have the exclusive authority to grant fishery privileges plant, or plantation is located.
in the municipal waters and impose rentals, fees or charges therefor in
accordance with the provisions of this section. ARTICLE III
(b) The sangguniang bayan may: Cities

(1) Grant fishery privileges to erect fish corrals, oysters, mussels or SECTION 151. Scope of Taxing Powers. – Except as
other aquatic beds or bangus fry areas, within a definite zone of the otherwise provided in this Code, the city, may levy the taxes, fees, and
municipal waters, as determined by it: Provided, however, That duly charges which the province or municipality may impose: Provided,
registered organizations and cooperatives of marginal fishermen shall however, That the taxes, fees and charges levied and collected by highly
have the preferential right to such fishery privileges: Provided, urbanized and independent component cities shall accrue to them and
further, That the sangguniang bayan may require a public bidding in distributed in accordance with the provisions of this Code.
conformity with and pursuant to an ordinance for the grant of such
The rates of taxes that the city may levy may exceed the maximum rates
privileges: Provided, finally, That in the absence of such organizations
allowed for the province or municipality by not more than fifty percent
and cooperatives or their failure to exercise their preferential right,
(50%) except the rates of professional and amusement taxes.
other parties may participate in the public bidding in conformity with
the above cited procedure.
ARTICLE IV
(2) Grant the privilege to gather, take or catch bangus fry, prawn fry
or kawag-kawag or fry of other species and fish from the municipal BARANGAYS
waters by nets, traps or other fishing gears to marginal fishermen free SECTION 152. Scope of Taxing Powers. – The barangays
of any rental, fee, charge or any other imposition whatsoever. may levy taxes, fees, and charges, as provided in this Article, which shall
(3) Issue licenses for the operation of fishing vessels of three (3) tons exclusively accrue to them:
or less for which purpose the sangguniang bayan shall promulgate (a) Taxes – On stores or retailers with fixed business establishments with
rules and regulations regarding the issuances of such licenses to gross sales of receipts of the preceding calendar year of Fifty thousand
qualified applicants under existing laws; Provided, however, That the pesos (P50,000.00) or less, in the case of cities and Thirty thousand
sanggunian concerned shall, by appropriate ordinance, penalize the pesos (P30,000.00) or less, in the case of municipalities, at a rate not
use of explosives, noxious or poisonous substances, electricity, muro- exceeding one percent (1%) on such gross sales or receipts.
ami, and other deleterious methods of fishing and prescribe a criminal
penalty therefor in accordance with the provisions of this Code: (b) Service Fees or Charges. – Barangays may collect reasonable fees or
Provided, finally, That the sanggunian concerned shall have the charges for services rendered in connection with the regulations or the
authority to prosecute any violation of the provisions of applicable use of barangay-owned properties or service facilities such as palay,
fishery laws. copra, or tobacco dryers.

SECTION 150. Situs of the Tax. – (a) For purposes of (c) Barangay Clearance. – No city or municipality may issue any license
collection of the taxes under Section 143 of this Code, manufacturers, or permit for any business or activity unless a clearance is first obtained
assemblers, repackers, brewers, distillers, rectifiers and compounders of from the barangay where such business or activity is located or
liquor, distilled spirits and wines, millers, producers, exporters, conducted. For such clearance, the sangguniang barangay may impose
wholesalers, distributors, dealers, contractors, banks and other financial a reasonable fee. The application for clearance shall be acted upon within
institutions, and other businesses, maintaining or operating branch or seven (7) working days from the filing thereof. In the event that the
sales outlet elsewhere shall record the sale in the branch or sales outlet clearance is not issued within the said period, the city or municipality
making the sale or transaction, and the tax thereon shall accrue and shall may issue the said license or permit.
be paid to the municipality where such branch or sales outlet is located.
(d) Other fees and Charges. – The barangay may levy reasonable fees
In cases where there is no such branch or sales outlet in the city or
and charges:
municipality where the sale or transaction is made, the sale shall be duly
recorded in the principal office and the taxes due shall accrue and shall (1) On commercial breeding of fighting cocks, cockfights and cockpits;
be paid to such city or municipality.
(2) On places of recreation which charge admission fees; and
(b) The following sales allocation shall apply to manufacturers,
assemblers, contractors, producers, and exporters with factories, project (3) On billboards, signboards, neon signs, and outdoor
offices, plants, and plantations in the pursuit of their business: advertisements.

(1) Thirty percent (30%) of all sales recorded in the principal office
shall be taxable by the city or municipality where the principal office ARTICLE V
is located; and COMMON REVENUE-RAISING POWERS
(2) Seventy percent (70%) of all sales recorded in the principal office SECTION 153. Service Fees and Charges. – Local
shall be taxable by the city or municipality where the factory, project government units may impose and collect such reasonable fees and
office, plant, or plantation is located. charges for services rendered.
(c) In case of a plantation located at a place other than the place where SECTION 154. Public Utility Charges. – Local government
the factory is located, said seventy percent (70%) mentioned in units may fix the rates for the operation of public utilities owned,
subparagraph (b) of subsection (2) above shall be divided as follows: operated and maintained by them within their jurisdiction.
(1) Sixty percent (60%) to the city or municipality where the factory SECTION 155. Toll Fees or Charges. – The sanggunian
is located; and concerned may prescribe the terms and conditions and fix the rates for
the imposition of toll fees or charges for the use of any public road, pier,
Page | 22
or wharf, waterway, bridge, ferry or telecommunication system funded Persons who come to reside in the Philippines or reach the age of
and constructed by the local government unit concerned: Provided, That eighteen (18) years on or after the first (1st) day of July of any year, or
no such toll fees or charges shall be collected from officers and enlisted who cease to belong to an exempt class on or after the same date, shall
men of the Armed Forces of the Philippines and members of the not be subject to the community tax for that year.
Philippine National Police on mission, post office personnel delivering
mail, physically-handicapped, and disabled citizens who are sixty-five (b) Corporations established and organized on or before the last day of
(65) years or older. June shall be liable for the community tax for that year. But corporations
established and organized on or before the last day of March shall have
When public safety and welfare so requires, the sanggunian concerned twenty (20) days within which to pay the community tax without
may discontinue the collection of the tolls, and thereafter the said facility becoming delinquent. Corporations established and organized on or after
shall be free and open for public use. the first day of July shall not be subject to the community tax for that
year.

ARTICLE VI If the tax is not paid within the time prescribed above, there shall be
Community Tax added to the unpaid amount an interest of twenty-four percent (24%)
per annum from the due date until it is paid.
SECTION 156. Community Tax. – Cities or municipalities
may levy a community tax in accordance with the provisions of this SECTION 162. Community Tax Certificate. – A
Article. community tax certificate shall be issued to every person or corporation
upon payment of the community tax. A community tax certificate may
SECTION 157. Individuals Liable to Community Tax. – also be issued to any person or corporation not subject to the community
Every inhabitant of the Philippines eighteen (18) years of age or over tax upon payment of One peso (P1.00).
who has been regularly employed on a wage or salary basis for at least
thirty (30) consecutive working days during any calendar year, or who is SECTION 163. Presentation of Community Tax
engaged in business or occupation, or who owns real property with an Certificate On Certain Occasions. – (a) When an individual subject
aggregate assessed value of One thousand pesos (P1,000.00) or more, to the community tax acknowledges any document before a notary
or who is required by law to file an income tax return shall pay an annual public, takes the oath of office upon election or appointment to any
additional tax of Five pesos (P5.00) and an annual additional tax of One position in the government service; receives any license, certificate, or
peso (P1.00) for every One thousand pesos (P1,000.00) of income permit from any public authority; pays any tax or fee; receives any
regardless of whether from business, exercise of profession or from money from any public fund; transacts other official business; or receives
property which in no case shall exceed Five thousand pesos (P5,000.00). any salary or wage from any person or corporation, it shall be the duty
of any person, officer, or corporation with whom such transaction is
In the case of husband and wife, the additional tax herein imposed shall made or business done or from whom any salary or wage is received to
be based upon the total property owned by them and the total gross require such individual to exhibit the community tax certificate.
receipts or earnings derived by them.
The presentation of community tax certificate shall not be required in
SECTION 158. Juridical Persons Liable to Community connection with the registration of a voter.
Tax. – Every corporation no matter how created or organized, whether
domestic or resident foreign, engaged in or doing business in the (b) When, through its authorized officers, any corporation subject to the
Philippines shall pay an annual community tax of Five hundred pesos community tax receives any license, certificate, or permit from any public
(P500.00) and an annual additional tax, which, in no case, shall exceed authority, pays any tax or fee, receives money from public funds, or
Ten thousand pesos (P10,000.00) in accordance with the following transacts other official business, it shall be the duty of the public official
schedule: with whom such transaction is made or business done, to require such
corporation to exhibit the community tax certificate.
(1) For every Five thousand pesos (P5,000.00) worth of real property
in the Philippines owned by it during the preceding year based on the (c) The community tax certificate required in the two preceding
valuation used for the payment of real property tax under existing paragraphs shall be the one issued for the current year, except for the
laws, found in the assessment rolls of the city or municipality where period from January until the fifteenth (15th) of April each year, in which
the real property is situated – Two pesos (P2.00); and case, the certificate issued for the preceding year shall suffice.

(2) For every Five thousand pesos (P5,000.00) of gross receipts or SECTION 164. Printing of Community Tax Certificates
earnings derived by it from its business in the Philippines during the and Distribution of Proceeds. – (a) The Bureau of Internal Revenue
preceding year – Two pesos (P2.00). shall cause the printing of community tax certificates and distribute the
same to the cities and municipalities through the city and municipal
The dividends received by a corporation from another corporation treasurers in accordance with prescribed regulations.
however shall, for the purpose of the additional tax, be considered as
part of the gross receipts or earnings of said corporation. The proceeds of the tax shall accrue to the general funds of the cities,
municipalities and barangays except a portion thereof which shall accrue
SECTION 159. Exemptions. – The following are exempt to the general fund of the National Government to cover the actual cost
from the community tax: of printing and distribution of the forms and other related expenses. The
city or municipal treasurer concerned shall remit to the national treasurer
(1) Diplomatic and consular representatives; and
the said share of the National Government in the proceeds of the tax
(2) Transient visitors when their stay in the Philippines does not within ten (10) days after the end of each quarter.
exceed three (3) months.
(b) The city or municipal treasurer shall deputize the barangay treasurer
SECTION 160. Place of Payment. – The community tax to collect the community tax in their respective jurisdictions: Provided,
shall be paid in the place of residence of the individual, or in the place however, That said barangay treasurer shall be bonded in accordance
where the principal office of the juridical entity is located. with existing laws.

SECTION 161. Time for Payment; Penalties for (c) The proceeds of the community tax actually and directly collected by
Delinquency. – (a) The community tax shall accrue on the first (1st) the city or municipal treasurer shall accrue entirely to the general fund
day of January of each year which shall be paid not later than the last of the city or municipality concerned. However, proceeds of the
day of February of each year. If a person reaches the age of eighteen community tax collected through the barangay treasurers shall be
(18) years or otherwise loses the benefit of exemption on or before the apportioned as follows:
last day of June, he shall be liable for the community tax on the day he
(1) Fifty percent (50%) shall accrue to the general fund of the city or
reaches such age or upon the day the exemption ends. However, if a
municipality concerned; and
person reaches the age of eighteen (18) years or loses the benefit of
exemption on or before the last day of March, he shall have twenty (20) (2) Fifty percent (50%) shall accrue to the barangay where the tax is
days to pay the community tax without becoming delinquent. collected.

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 CHAPTER III SECTION 172. Application of Chapter. – The provisions of
Collection of Taxes this Chapter and the remedies provided herein may be availed of for the
collection of any delinquent local tax, fee, charge, or other revenue.
SECTION 165. Tax Period and Manner of Payment. –
Unless otherwise provided in this Code, the tax period of all local taxes, SECTION 173. Local Government’s Lien. – Local taxes,
fees and charges shall be the calendar year. Such taxes, fees and charges fees, charges and other revenues constitute a lien, superior to all liens,
may be paid in quarterly installments. charges or encumbrances in favor of any person, enforceable by
appropriate administrative or judicial action, not only upon any property
SECTION 166. Accrual of Tax. – Unless otherwise provided or rights therein which may be subject to the lien but also upon property
in this Code, all local taxes, fees, and charges shall accrue on the first used in business, occupation, practice of profession or calling, or exercise
(1st) day of January of each year. However, new taxes, fees or charges, of privilege with respect to which the lien is imposed. The lien may only
or changes in the rates thereof, shall accrue on the first (1st) day of the be extinguished upon full payment of the delinquent local taxes, fees and
quarter next following the effectivity of the ordinance imposing such new charges including related surcharges and interest.
levies or rates.
SECTION 174. Civil Remedies. – The civil remedies for the
SECTION 167. Time of Payment. – Unless otherwise collection of local taxes, fees, or charges, and related surcharges and
provided in this Code, all local taxes, fees, and charges shall be paid interest resulting from delinquency shall be:
within the first twenty (20) days of January or of each subsequent
quarter, as the case may be. The sanggunian concerned may, for a (a) By administrative action through distraint of goods, chattels, or
justifiable reason or cause, extend the time for payment of such taxes, effects, and other personal property of whatever character, including
fees, or charges without surcharges or penalties, but only for a period stocks and other securities, debts, credits, bank accounts, and interest
not exceeding six (6) months. in and rights to personal property, and by levy upon real property and
interest in or rights to real property; and
SECTION 168. Surcharges and Penalties on Unpaid
Taxes, Fees, or Charges. – The sanggunian may impose a surcharge (b) By judicial action.
not exceeding twenty-five (25%) of the amount of taxes, fees or charges
Either of these remedies or all may be pursued concurrently or
not paid on time and an interest at the rate not exceeding two percent
simultaneously at the discretion of the local government unit concerned.
(2%) per month of the unpaid taxes, fees or charges including
surcharges, until such amount is fully paid but in no case shall the total SECTION 175. Distraint of Personal Property. – The
interest on the unpaid amount or portion thereof exceed thirty-six (36) remedy by distraint shall proceed as follows:
months.
(a) Seizure – Upon failure of the person owing any local tax, fee, or
SECTION 169. Interests on Other Unpaid Revenues. – charge to pay the same at the time required, the local treasurer or his
Where the amount of any other revenue due a local government unit, deputy may, upon written notice, seize or confiscate any personal
except voluntary contributions or donations, is not paid on the date fixed property belonging to that person or any personal property subject to
in the ordinance, or in the contract, expressed or implied, or upon the the lien in sufficient quantity to satisfy the tax, fee, or charge in question,
occurrence of the event which has given rise to its collection, there shall together with any increment thereto incident to delinquency and the
be collected as part of that amount an interest thereon at the rate not expenses of seizure. In such case, the local treasurer or his deputy shall
exceeding two percent (2%) per month from the date it is due until it is issue a duly authenticated certificate based upon the records of his office
paid, but in no case shall the total interest on the unpaid amount or a showing the fact of delinquency and the amounts of the tax, fee, or
portion thereof exceed thirty-six (36) months. charge and penalty due. Such certificate shall serve as sufficient warrant
for the distraint of personal property aforementioned, subject to the
SECTION 170. Collection of Local Revenue by
taxpayer’s right to claim exemption under the provisions of existing laws.
Treasurer. – All local taxes, fees, and charges shall be collected by the
Distrained personal property shall be sold at public auction in the manner
provincial, city, municipal, or barangay treasurer, or their duly authorized
herein provided for.
deputies.
(b) Accounting of distrained goods. – The officer executing the distraint
The provincial, city or municipal treasurer may designate the barangay
shall make or cause to be made an account of the goods, chattels or
treasurer as his deputy to collect local taxes, fees, or charges. In case a
effects distrained, a copy of which signed by himself shall be left either
bond is required for the purpose, the provincial, city or municipal
with the owner or person from whose possession the goods, chattels or
government shall pay the premiums thereon in addition to the premiums
effects are taken, or at the dwelling or place of business of that person
of bond that may be required under this Code.
and with someone of suitable age and discretion, to which list shall be
SECTION 171. Examination of Books of Accounts and added a statement of the sum demanded and a note of the time and
Pertinent Records of Businessmen by Local Treasurer. – The place of sale.
provincial, city, municipal or barangay treasurer may, by himself or
(c) Publication – The officer shall forthwith cause a notification to be
through any of his deputies duly authorized in writing, examine the
exhibited in not less than three (3) public and conspicuous places in the
books, accounts, and other pertinent records of any person, partnership,
territory of the local government unit where the distraint is made,
corporation, or association subject to local taxes, fees and charges in
specifying the time and place of sale, and the articles distrained. The
order to ascertain, assess, and collect the correct amount of the tax, fee,
time of sale shall not be less than twenty (20) days after notice to the
or charge. Such examination shall be made during regular business
owner or possessor of the property as above specified and the publication
hours, only once for every tax period, and shall be certified to by the
or posting of the notice. One place for the posting of the notice shall be
examining official. Such certificate shall be made of record in the books
at the office of the chief executive of the local government unit in which
of accounts of the taxpayer examined.
the property is distrained.
In case the examination herein authorized is made by a duly authorized
(d) Release of distrained property upon payment prior to sale – If at any
deputy of the local treasurer, the written authority of the deputy
time prior to the consummation of the sale, all the proper charges are
concerned shall specifically state the name, address, and business of the
paid to the officer conducting the sale, the goods or effects distrained
taxpayer whose books, accounts, and pertinent records are to be
shall be restored to the owner.
examined, the date and place of such examination and the procedure to
be followed in conducting the same. (e) Procedure of sale – At the time and place fixed in the notice, the
officer conducting the sale shall sell the goods or effects so distrained at
For this purpose, the records of the revenue district office of the Bureau
public auction to the highest bidder for cash. Within five (5) days after
of Internal Revenue shall be made available to the local treasurer, his
the sale, the local treasurer shall make a report of the proceedings in
deputy or duly authorized representative.
writing to the local chief executive concerned.

CHAPTER IV Should the property distrained be not disposed of within one hundred
CIVIL REMEDIES FOR COLLECTION OF REVENUES and twenty (120) days from the date of distraint, the same shall be
considered as sold to the local government unit concerned for the
amount of the assessment made thereon by the Committee on Appraisal

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and to the extent of the same amount, the tax delinquencies shall be local treasurer shall make and deliver to the purchaser a certificate of
cancelled. sale, showing the proceedings of the sale, describing the property sold,
stating the name of the purchaser and setting out the exact amount of
Said Committee on Appraisal shall be composed of the city or municipal all taxes, fees, charges, and related surcharges, interests, or penalties:
treasurer as chairman, with a representative of the Commission on Audit Provided, however, That any excess in the proceeds of the sale over the
and the city or municipal assessor as members. claim and cost of sales shall be turned over to the owner of the property.
(f) Disposition of proceeds – The proceeds of the sale shall be applied to The local treasurer may, by ordinance duly approved, advance an
satisfy the tax, including the surcharges, interest, and other penalties amount sufficient to defray the costs of collection by means of the
incident to delinquency, and the expenses of the distraint and sale. The remedies provided for in this Title, including the preservation or
balance over and above what is required to pay the entire claim shall be transportation in case of personal property, and the advertisement and
returned to the owner of the property sold. The expenses chargeable subsequent sale, in cases of personal and real property including
upon the seizure and sale shall embrace only the actual expenses of improvements thereon.
seizure and preservation of the property pending the sale, and no charge
shall be imposed for the services of the local officer or his deputy. Where SECTION 179. Redemption of Property Sold. – Within
the proceeds of the sale are insufficient to satisfy the claim, other one (1) year from the date of sale, the delinquent taxpayer or his
property may, in like manner, be distrained until the full amount due, representative shall have the right to redeem the property upon payment
including all expenses, is collected. to the local treasurer of the total amount of taxes, fees, or charges, and
related surcharges, interests or penalties from the date of delinquency
SECTION 176. Levy on Real Property. – After the to the date of sale, plus interest of not more than two percent (2%) per
expiration of the time required to pay the delinquent tax, fee, or charge, month on the purchase price from the date of purchase to the date of
real property may be levied on before, simultaneously, or after the redemption. Such payment shall invalidate the certificate of sale issued
distraint of personal property belonging to the delinquent taxpayer. To to the purchaser and the owner shall be entitled to a certificate of
this end, the provincial, city or municipal treasurer, as the case may be, redemption from the provincial, city or municipal treasurer or his deputy.
shall prepare a duly authenticated certificate showing the name of the
taxpayer and the amount of the tax, fee, or charge, and penalty due from The provincial, city or municipal treasurer or his deputy, upon surrender
him. Said certificate shall operate with the force of a legal execution by the purchaser of the certificate of sale previously issued to him, shall
throughout the Philippines. Levy shall be effected by writing upon said forthwith return to the latter the entire purchase price paid by him plus
certificate the description of the property upon which levy is made. At the interest of not more than two percent (2%) per month herein
the same time, written notice of the levy shall be mailed to or served provided for, the portion of the cost of sale and other legitimate expenses
upon the assessor and the Register of Deeds of the province or city where incurred by him, and said property thereafter shall be free from the lien
the property is located who shall annotate the levy on the tax declaration of such taxes, fees, or charges, related surcharges, interests, and
and certificate of title of the property, respectively, and the delinquent penalties.
taxpayer or, if he be absent from the Philippines, to his agent or the
manager of the business in respect to which the liability arose, or if there The owner shall not, however, be deprived of the possession of said
be none, to the occupant of the property in question. property and shall be entitled to the rentals and other income thereof
until the expiration of the time allowed for its redemption.
In case the levy on real property is not issued before or simultaneously
with the warrant of distraint on personal property, and the personal SECTION 180. Final Deed to Purchaser. – In case the
property of the taxpayer is not sufficient to satisfy his delinquency, the taxpayer fails to redeem the property as provided herein, the local
provincial, city or municipal treasurer, as the case may be, shall within treasurer shall execute a deed conveying to the purchaser so much of
thirty (30) days after execution of the distraint, proceed with the levy on the property as has been sold, free from liens of any taxes, fees, charges,
the taxpayer’s real property. related surcharges, interests, and penalties. The deed shall succinctly
recite all the proceedings upon which the validity of the sale depends.
A report on any levy shall, within ten (10) days after receipt of the
warrant, be submitted by the levying officer to the sanggunian SECTION 181. Purchase of Property By the Local
concerned. Government Units for Want of Bidder. – In case there is no bidder
for the real property advertised for sale as provided herein, or if the
SECTION 177. Penalty for Failure to Issue and Execute highest bid is for an amount insufficient to pay the taxes, fees, or
Warrant. – Without prejudice to criminal prosecution under the Revised charges, related surcharges, interests, penalties and costs, the local
Penal Code and other applicable laws, any local treasurer who fails to treasurer conducting the sale shall purchase the property in behalf of the
issue or execute the warrant of distraint or levy after the expiration of local government unit concerned to satisfy the claim and within two (2)
the time prescribed, or who is found guilty of abusing the exercise thereof days thereafter shall make a report of his proceedings which shall be
by competent authority shall be automatically dismissed from the service reflected upon the records of his office. It shall be the duty of the
after due notice and hearing. Registrar of Deeds concerned upon registration with his office of any
such declaration of forfeiture to transfer the title of the forfeited property
SECTION 178. Advertisement and Sale. – Within thirty to the local government unit concerned without the necessity of an order
(30) days after the levy, the local treasurer shall proceed to publicly from a competent court.
advertise for sale or auction the property or a usable portion thereof as
may be necessary to satisfy the claim and cost of sale; and such Within one (1) year from the date of such forfeiture, the taxpayer or any
advertisement shall cover a period of at least thirty (30) days. It shall be of his representative, may redeem the property by paying to the local
effected by posting a notice at the main entrance of the municipal treasurer the full amount of the taxes, fees, charges, and related
building or city hall, and in a public and conspicuous place in the surcharges, interests, or penalties, and the costs of sale. If the property
barangay where the real property is located, and by publication once a is not redeemed as provided herein, the ownership thereof shall be fully
week for three (3) weeks in a newspaper of general circulation in the vested on the local government unit concerned.
province, city or municipality where the property is located. The
advertisement shall contain the amount of taxes, fees or charges, and SECTION 182. Resale of Real Estate Taken for Taxes,
penalties due thereon, and the time and place of sale, the name of the Fees, or Charges. – The sanggunian concerned may, by ordinance duly
taxpayer against whom the taxes, fees, or charges are levied, and a short approved, and upon notice of not less than twenty (20) days, sell and
description of the property to be sold. At any time before the date fixed dispose of the real property acquired under the preceding section at
for the sale, the taxpayer may stay the proceedings by paying the taxes, public auction. The proceeds of the sale shall accrue to the general fund
fees, charges, penalties and interests. If he fails to do so, the sale shall of the local government unit concerned.
proceed and shall be held either at the main entrance of the provincial, SECTION 183. Collection of Delinquent Taxes, Fees,
city or municipal building, or on the property to be sold, or at any other Charges or other Revenues through Judicial Action. – The local
place as determined by the local treasurer conducting the sale and government unit concerned may enforce the collection of delinquent
specified in the notice of sale. taxes, fees, charges or other revenues by civil action in any court of
Within thirty (30) days after the sale, the local treasurer or his deputy competent jurisdiction. The civil action shall be filed by the local treasurer
shall make a report of the sale to the sanggunian concerned, and which within the period prescribed in Section 194 of this Code.
shall form part of his records. After consultation with the sanggunian, the
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 SECTION 184. Further Distraint or Levy. – The remedies tax ordinance or revenue measure after due notice of the disapproval or
by distraint and levy may be repeated if necessary until the full amount suspension thereof shall be sufficient ground for administrative
due, including all expenses, is collected. disciplinary action against the local officials and employees responsible
therefor.
SECTION 185. Personal Property Exempt from
Distraint or Levy. – The following property shall be exempt from SECTION 191. Authority of Local Government Units to
distraint and levy, attachment or execution thereof for delinquency in the Adjust Rates of Tax Ordinances. – Local government units shall have
payment of any local tax, fee or charge, including the related surcharge the authority to adjust the tax rates as prescribed herein not oftener than
and interest: once every five (5) years, but in no case shall such adjustment exceed
ten percent (10%) of the rates fixed under this Code.
(a) Tools and implements necessarily used by the delinquent taxpayer in
his trade or employment; SECTION 192. Authority to Grant Tax Exemption
Privileges. – Local government units may, through ordinances duly
(b) One (1) horse, cow, carabao, or other beast of burden, such as the approved, grant tax exemptions, incentives or reliefs under such terms
delinquent taxpayer may select, and necessarily used by him in his and conditions as they may deem necessary.
ordinary occupation;
SECTION 193. Withdrawal of Tax Exemption
(c) His necessary clothing, and that of all his family; Privileges. – Unless otherwise provided in this Code, tax exemptions or
(d) Household furniture and utensils necessary for housekeeping and incentives granted to, or presently enjoyed by all persons, whether
used for that purpose by the delinquent taxpayer, such as he may select, natural or juridical, including government-owned or -controlled
of a value not exceeding Ten thousand pesos (P10,000.00); corporations, except local water districts, cooperatives duly registered
under R.A. No. 6938, non-stock and non-profit hospitals and educational
(e) Provisions, including crops, actually provided for individual or family institutions, are hereby withdrawn upon the effectivity of this Code.
use sufficient for four (4) months;
(f) The professional libraries of doctors, engineers, lawyers and judges; CHAPTER VI
(g) One fishing boat and net, not exceeding the total value of Ten Taxpayer’s Remedies
thousand pesos (P10,000.00), by the lawful use of which a fisherman SECTION 194. Periods of Assessment and Collection. –
earns his livelihood; and (a) Local taxes, fees, or charges shall be assessed within five (5) years
(h) Any material or article forming part of a house or improvement of from the date they became due. No action for the collection of such
any real property. taxes, fees, or charges, whether administrative or judicial, shall be
instituted after the expiration of such period: Provided, That taxes, fees
or charges which have accrued before the effectivity of this Code may be
CHAPTER V assessed within a period of three (3) years from the date they became
Miscellaneous Provisions due.

SECTION 186. Power To Levy Other Taxes, Fees or (b) In case of fraud or intent to evade the payment of taxes, fees, or
Charges. – Local government units may exercise the power to levy charges, the same may be assessed within ten (10) years from discovery
taxes, fees or charges on any base or subject not otherwise specifically of the fraud or intent to evade payment.
enumerated herein or taxed under the provisions of the National Internal
(c) Local taxes, fees, or charges may be collected within five (5) years
Revenue Code, as amended, or other applicable laws: Provided, That the
from the date of assessment by administrative or judicial action. No such
taxes, fees, or charges shall not be unjust, excessive, oppressive,
action shall be instituted after the expiration of said period: Provided,
confiscatory or contrary to declared national policy: Provided, further,
however, That taxes, fees or charges assessed before the effectivity of
That the ordinance levying such taxes, fees or charges shall not be
this Code may be collected within a period of three (3) years from the
enacted without any prior public hearing conducted for the purpose.
date of assessment.
SECTION 187. Procedure for Approval and Effectivity
(d) The running of the periods of prescription provided in the preceding
of Tax Ordinances and Revenue Measures; Mandatory Public
paragraphs shall be suspended for the time during which:
Hearings. – The procedure for approval of local tax ordinances and
revenue measures shall be in accordance with the provisions of this (1) The treasurer is legally prevented from making the assessment of
Code: Provided, That public hearings shall be conducted for the purpose collection;
prior to the enactment thereof: Provided, further, That any question on
the constitutionality or legality of tax ordinances or revenue measures (2) The taxpayer requests for a reinvestigation and executes a waiver
may be raised on appeal within thirty (30) days from the effectivity in writing before expiration of the period within which to assess or
thereof to the Secretary of Justice who shall render a decision within sixty collect; and
(60) days from the date of receipt of the appeal: Provided, however, That (3) The taxpayer is out of the country or otherwise cannot be located.
such appeal shall not have the effect of suspending the effectivity of the
ordinance and the accrual and payment of the tax, fee, or charge levied SECTION 195. Protest of Assessment. – When the local
therein: Provided, finally, That within thirty (30) days after receipt of the treasurer or his duly authorized representative finds that correct taxes,
decision or the lapse of the sixty-day period without the Secretary of fees, or charges have not been paid, he shall issue a notice of assessment
Justice acting upon the appeal, the aggrieved party may file appropriate stating the nature of the tax, fee, or charge, the amount of deficiency,
proceedings with a court of competent jurisdiction. the surcharges, interests and penalties. Within sixty (60) days from the
receipt of the notice of assessment, the taxpayer may file a written
SECTION 188. Publication of Tax Ordinances and protest with the local treasurer contesting the assessment; otherwise,
Revenue Measures. – Within ten (10) days after their approval, the assessment shall become final and executory. The local treasurer
certified true copies of all provincial, city, and municipal tax ordinances shall decide the protest within sixty (60) days from the time of its filing.
or revenue measures shall be published in full for three (3) consecutive If the local treasurer finds the protest to be wholly or partly meritorious,
days in a newspaper of local circulation: Provided, however, That in he shall issue a notice cancelling wholly or partially the assessment.
provinces, cities and municipalities where there are no newspapers of However, if the local treasurer finds the assessment to be wholly or partly
local circulation, the same may be posted in at least two (2) conspicuous correct, he shall deny the protest wholly or partly with notice to the
and publicly accessible places. taxpayer. The taxpayer shall have thirty (30) days from the receipt of the
SECTION 189. Furnishing of Copies of Tax Ordinances denial of the protest or from the lapse of the sixty (60)-day period
and Revenue Measures. – Copies of all provincial, city, and municipal prescribed herein within which to appeal with the court of competent
and barangay tax ordinances and revenue measures shall be furnished jurisdiction otherwise the assessment becomes conclusive and
the respective local treasurers for public dissemination. unappealable.

SECTION 190. Attempt to Enforce Void or Suspended SECTION 196. Claim for Refund of Tax Credit. – No case
Tax Ordinances and Revenue Measures. – The enforcement of any or proceeding shall be maintained in any court for the recovery of any
tax, fee, or charge erroneously or illegally collected until a written claim
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for refund or credit has been filed with the local treasurer. No case or (n) “Industrial Land” is land devoted principally to industrial activity as
proceeding shall be entertained in any court after the expiration of two capital investment and is not classified as agricultural, commercial,
(2) years from the date of the payment of such tax, fee, or charge, or timber, mineral or residential land;
from the date the taxpayer is entitled to a refund or credit.
(o) “Machinery” embraces machines, equipment, mechanical
contrivances, instruments, appliances or apparatus which may or may
TITLE II not be attached, permanently or temporarily, to the real property. It
REAL PROPERTY TAXATION includes the physical facilities for production, the installations and
CHAPTER I appurtenant service facilities, those which are mobile, self-powered or
self-propelled, and those not permanently attached to the real property
GENERAL PROVISIONS
which are actually, directly, and exclusively used to meet the needs of
SECTION 197. Scope. – This Title shall govern the the particular industry, business or activity and which by their very nature
administration, appraisal, assessment, levy and collection of real property and purpose are designed for, or necessary to its manufacturing, mining,
tax. logging, commercial, industrial or agricultural purposes;
SECTION 198. Fundamental Principles. – The appraisal, (p) “Mineral Lands” are lands in which minerals, metallic or non-metallic,
assessment, levy and collection of real property tax shall be guided by exist in sufficient quantity or grade to justify the necessary expenditures
the following fundamental principles: to extract and utilize such materials;
(a) Real property shall be appraised at its current and fair market value; (q) “Reassessment” is the assigning of new assessed values to property,
particularly real estate, as the result of a general, partial, or individual
(b) Real property shall be classified for assessment purposes on the basis reappraisal of the property;
of its actual use;
(r) “Remaining Economic Life” is the period of time expressed in years
(c) Real property shall be assessed on the basis of a uniform classification from the date of appraisal to the date when the machinery becomes
within each local government unit; valueless;
(d) The appraisal, assessment, levy and collection of real property tax (s) “Remaining Value” is the value corresponding to the remaining useful
shall not be let to any private person; and life of the machinery;
(e) The appraisal and assessment of real property shall be equitable. (t) “Replacement or Reproduction Cost” is the cost that would be incurred
SECTION 199. Definition of Terms. – When used in this on the basis of current prices, in acquiring an equally desirable substitute
Title, the term: property, or the cost of reproducing a new replica of the property on the
basis of current prices with the same or closely similar material; and
(a) “Acquisition Cost” for newly-acquired machinery not yet depreciated
and appraised within the year of its purchase, refers to the actual cost of (u) “Residential Land” is land principally devoted to habitation.
the machinery to its present owner, plus the cost of transportation, SECTION 200. Administration of the Real Property Tax. – The provinces
handling, and installation at the present site; and cities, including the municipalities within the Metropolitan Manila
(b) “Actual Use” refers to the purpose for which the property is principally Area, shall be primarily responsible for the proper, efficient and effective
or predominantly utilized by the person in possession thereof; administration of the real property tax.

(c) “Ad Valorem Tax” is a levy on real property determined on the basis
of a fixed proportion of the value of the property; CHAPTER II
(d) “Agricultural Land” is land devoted principally to the planting of trees, APPRAISAL AND ASSESSMENT OF REAL PROPERTY
raising of crops, livestock and poultry, dairying, salt making, inland
fishing and similar aquacultural activities, and other agricultural activities, SECTION 201. Appraisal of Real Property. – All real
and is not classified as mineral, timber, residential, commercial or property, whether taxable or exempt, shall be appraised at the current
industrial land; and fair market value prevailing in the locality where the property is
situated. The Department of Finance shall promulgate the necessary
(e) “Appraisal” is the act or process of determining the value of property rules and regulations for the classification, appraisal, and assessment of
as of a specified date for a specific purpose; real property pursuant to the provisions of this Code.
(f) “Assessment” is the act or process of determining the value of a SECTION 202. Declaration of Real Property by the
property, or proportion thereof subject to tax, including the discovery, Owner or Administrator. – It shall be the duty of all persons, natural
listing, classification, and appraisal of properties; or juridical, owning or administering real property, including the
(g) “Assessment Level” is the percentage applied to the fair market value improvements therein, within a city or municipality, or their duly
to determine the taxable value of the property; authorized representative, to prepare, or cause to be prepared, and file
with the provincial, city or municipal assessor, a sworn statement
(h) “Assessed Value” is the fair market value of the real property declaring the true value of their property, whether previously declared or
multiplied by the assessment level. It is synonymous to taxable value; undeclared, taxable or exempt, which shall be the current and fair market
value of the property, as determined by the declarant. Such declaration
(i) “Commercial Land” is land devoted principally for the object of profit
shall contain a description of the property sufficient in detail to enable
and is not classified as agricultural, industrial, mineral, timber, or
the assessor or his deputy to identify the same for assessment purposes.
residential land;
The sworn declaration of real property herein referred to shall be filed
(j) “Depreciated Value” is the value remaining after deducting with the assessor concerned once every three (3) years during the period
depreciation from the acquisition cost; from January first (1st) to June thirtieth (30th) commencing with the
calendar year 1992.
(k) “Economic Life” is the estimated period over which it is anticipated
that a machinery or equipment may be profitably utilized; SECTION 203. Duty of Person Acquiring Real Property
or Making Improvement Thereon. – It shall also be the duty of any
(l) “Fair Market Value” is the price at which a property may be sold by a person, or his authorized representative, acquiring at any time real
seller who is not compelled to sell and bought by a buyer who is not property in any municipality or city or making any improvement on real
compelled to buy; property, to prepare, or cause to be prepared, and file with the provincial,
(m) “Improvement” is a valuable addition made to a property or an city or municipal assessor, a sworn statement declaring the true value of
amelioration in its condition, amounting to more than a mere repair or subject property, within sixty (60) days after the acquisition of such
replacement of parts involving capital expenditures and labor, which is property or upon completion or occupancy of the improvement,
intended to enhance its value, beauty or utility or to adapt it for new or whichever comes earlier.
further purposes;

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 SECTION 204. Declaration of Real Property by the alienation, or encumbrance of real property to accompany the same with
Assessor. – When any person, natural or juridical, by whom real a certificate to the effect that the real property subject of the transfer,
property is required to be declared under Section 202 hereof, refuses or alienation, or encumbrance, as the case may be, has been fully paid of
fails for any reason to make such declaration within the time prescribed, all real property taxes due thereon. Failure to provide such certificate
the provincial, city or municipal assessor shall himself declare the shall be a valid cause for the Registrar of Deeds to refuse the registration
property in the name of the defaulting owner, if known, or against an of the document.
unknown owner, as the case may be, and shall assess the property for
taxation in accordance with the provision of this Title. No oath shall be SECTION 210. Duty of Official Issuing Building Permit
required of a declaration thus made by the provincial, city or municipal or Certificate of Registration of Machinery to Transmit Copy to
assessor. Assessor. – Any public official or employee who may now or hereafter
be required by law or regulation to issue to any person a permit for the
SECTION 205. Listing of Real Property in the construction, addition, repair, or renovation of a building, or permanent
Assessment Rolls. – (a) In every province and city, including the improvement on land, or a certificate of registration for any machinery,
municipalities within the Metropolitan Manila Area, there shall be including machines, mechanical contrivances, and apparatus attached or
prepared and maintained by the provincial, city or municipal assessor an affixed on land or to another real property, shall transmit a copy of such
assessment roll wherein shall be listed all real property, whether taxable permit or certificate within thirty (30) days of its issuance, to the assessor
or exempt, located within the territorial jurisdiction of the local of the province, city or municipality where the property is situated.
government unit concerned. Real property shall be listed, valued and
assessed in the name of the owner or administrator, or anyone having SECTION 211. Duty of Geodetic Engineers to Furnish
legal interest in the property. Copy of Plans to Assessor. – It shall be the duty of all geodetic
engineers, public or private, to furnish free of charge to the assessor of
(b) The undivided real property of a deceased person may be listed, the province, city or municipality where the land is located with a white
valued and assessed in the name of the estate or of the heirs and or blue print copy of each of all approved original or subdivision plans or
devisees without designating them individually; and undivided real maps of surveys executed by them within thirty (30) days from receipt
property other than that owned by a deceased may be listed, valued and of such plans from the Lands Management Bureau, the Land Registration
assessed in the name of one or more co-owners: Provided, however, Authority, or the Housing and Land Use Regulatory Board, as the case
That such heir, devisee, or co-owner shall be liable severally and may be.
proportionately for all obligations imposed by this Title and the payment
of the real property tax with respect to the undivided property. SECTION 212. Preparation of Schedule of Fair Market
Values. – Before any general revision of property assessment is made
(c) The real property of a corporation, partnership, or association shall pursuant to the provisions of this Title, there shall be prepared a schedule
be listed, valued and assessed in the same manner as that of an of fair market values by the provincial, city and municipal assessors of
individual. the municipalities within the Metropolitan Manila Area for the different
classes of real property situated in their respective local government
(d) Real property owned by the Republic of the Philippines, its units for enactment by ordinance of the sanggunian concerned. The
instrumentalities and political subdivisions, the beneficial use of which schedule of fair market values shall be published in a newspaper of
has been granted, for consideration or otherwise, to a taxable person, general circulation in the province, city or municipality concerned, or in
shall be listed, valued and assessed in the name of the possessor, the absence thereof, shall be posted in the provincial capitol, city or
grantee or of the public entity if such property has been acquired or held municipal hall and in two (2) other conspicuous public places therein.
for resale or lease.
SECTION 213. Authority of Assessor to Take Evidence.
SECTION 206. Proof of Exemption of Real Property – For the purpose of obtaining information on which to base the market
from Taxation. – Every person by or for whom real property is declared, value of any real property, the assessor of the province, city or
who shall claim tax exemption for such property under this Title shall file municipality or his deputy may summon the owners of the properties to
with the provincial, city or municipal assessor within thirty (30) days from be affected or persons having legal interest therein and witnesses,
the date of the declaration of real property sufficient documentary administer oaths, and take deposition concerning the property, its
evidence in support of such claim including corporate charters, title of ownership, amount, nature, and value.
ownership, articles of incorporation, by-laws, contracts, affidavits,
certifications and mortgage deeds, and similar documents. SECTION 214. Amendment of Schedule of Fair Market
Values. – The provincial, city or municipal assessor may recommend to
If the required evidence is not submitted within the period herein the sanggunian concerned amendments to correct errors in valuation in
prescribed, the property shall be listed as taxable in the assessment roll. the schedule of fair market values. The sanggunian concerned shall, by
However, if the property shall be proven to be tax exempt, the same ordinance, act upon the recommendation within ninety (90) days from
shall be dropped from the assessment roll. receipt thereof.
SECTION 207. Real Property Identification System. – SECTION 215. Classes of Real Property for Assessment
All declarations of real property made under the provisions of this Title Purposes. – For purposes of assessment, real property shall be
shall be kept and filed under a uniform classification system to be classified as residential, agricultural, commercial, industrial, mineral,
established by the provincial, city or municipal assessor. timberland or special.
SECTION 208. Notification of Transfer of Real Property Ownership. – Any The city or municipality within the Metropolitan Manila Area, through
person who shall transfer real property ownership to another shall notify their respective sanggunian, shall have the power to classify lands as
the provincial, city or municipal assessor concerned within sixty (60) days residential, agricultural, commercial, industrial, mineral, timberland, or
from the date of such transfer. The notification shall include the mode of special in accordance with their zoning ordinances.
transfer, the description of the property alienated, the name and address
of the transferee. SECTION 216. Special Classes of Real Property. – All
lands, buildings, and other improvements thereon actually, directly and
SECTION 209. Duty of Registrar of Deeds to Apprise exclusively used for hospitals, cultural, or scientific purposes, and those
Assessor of Real Property Listed in Registry. – (a) To ascertain owned and used by local water districts, and government-owned or -
whether or not any real property entered in the Registry of Property has controlled corporations rendering essential public services in the supply
escaped discovery and listing for the purpose of taxation, the Registrar and distribution of water and/or generation and transmission of electric
of Deeds shall prepare and submit to the provincial, city or municipal power shall be classified as special.
assessor, within six (6) months from the date of effectivity of this Code
and every year thereafter, an abstract of his registry, which shall include SECTION 217. Actual Use of Real Property as Basis for
brief but sufficient description of the real properties entered therein, their Assessment. – Real property shall be classified, valued and assessed
present owners, and the dates of their most recent transfer or alienation on the basis of its actual use regardless of where located, whoever owns
accompanied by copies of corresponding deeds of sale, donation, or it, and whoever uses it.
partition or other forms of alienation.
SECTION 218. Assessment Levels. – The assessment
(b) It shall also be the duty of the Registrar of Deeds to require every levels to be applied to the fair market value of real property to determine
person who shall present for registration a document of transfer, its assessed value shall be fixed by ordinances of the sangguniang
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panlalawigan, sangguniang panlungsod or sangguniang bayan of a (4) Timberland
municipality within the Metropolitan Manila Area, at the rates not
exceeding the following: Fair Market Value Not Over Assessment
(a) On Lands: Over Levels

P300,000.00 45%
CLASS ASSESSMENT LEVELS
P300,000.00 500,000.00 50%
Residential 20%
500,000.00 750,000.00 55%
Agricultural 40%
750,000.00 1,000,000.00 60%
Commercial 50%
1,000,000.00 2,000,000.00 65%
Industrial 50%
2,000,000.00 70%
Mineral 50%
(c) On Machineries
Timberland 20%

(b) On Buildings and Other Structures: Class Assessment Levels

(1) Residential Agricultural 40%

Residential 50%
Fair Market Not Over Assessment
Value Over Levels Commercial 80%
P175,000.00 0% Industrial 80%
P175,000.00 300,000.00 10% (d) On Special Classes: The assessment levels for all lands, buildings,
machineries and other improvements;
300,000.00 500,000.00 20%

500,000.00 750,000.00 25% Actual Use Assessment Level

750,000.00 1,000,000.00 30% Cultural 15%

1,000,000.00 2,000,000.00 35% Scientific 15%

2,000,000.00 5,000,000.00 40% Hospital 15%

5,000,000.00 10,000,000.00 50% Local water districts 10%

10,000,000.00 60% Government-owned or -controlled 10%

corporations engaged in the supply and
(2) Agricultural distribution of water and/or generation
and transmission of electric power
Fair Market Not Over Assessment
Value Over Levels
SECTION 219. General Revision of Assessments and
P300,000.00 25% Property Classification. – The provincial, city or municipal assessor
shall undertake a general revision of real property assessments within
P300,000.00 500,000.00 30% two (2) years after the effectivity of this Code and every three (3) years
thereafter.
500,000.00 750,000.00 35%
SECTION 220. Valuation of Real Property. – In cases
750,000.00 1,000,000.00 40% where (a) real property is declared and listed for taxation purposes for
the first time; (b) there is an ongoing general revision of property
1,000,000.00 2,000,000.00 45% classification and assessment; or (c) a request is made by the person in
whose name the property is declared, the provincial, city or municipal
2,000,000.00 50% assessor or his duly authorized deputy shall, in accordance with the
(3) Commercial / Industrial provisions of this Chapter, make a classification, appraisal and
assessment of the real property listed and described in the declaration
irrespective of any previous assessment or taxpayer’s valuation thereon:
Fair Market Not Over Assessment Provided, however, That the assessment of real property shall not be
Value Over Levels increased oftener than once every three (3) years except in case of new
improvements substantially increasing the value of said property or of
P300,000.00 30% any change in its actual use.
P300,000.00 500,000.00 35% SECTION 221. Date of Effectivity of Assessment or
Reassessment. – All assessments or reassessments made after the first
500,000.00 750,000.00 40% (1st) day of January of any year shall take effect on the first (1st) day of
January of the succeeding year: Provided, however, That the
750,000.00 1,000,000.00 50%
reassessment of real property due to its partial or total destruction, or to
1,000,000.00 2,000,000.00 60% a major change in its actual use, or to any great and sudden inflation or
deflation of real property values, or to the gross illegality of the
2,000,000.00 5,000,000.00 70% assessment when made or to any other abnormal cause, shall be made
within ninety (90) days from the date any such cause or causes occurred,
5,000,000.00 10,000,000.00 75% and shall take effect at the beginning of the quarter next following the
reassessment.
10,000,000.00 80%

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 SECTION 222. Assessment of Property Subject to Back provincial or city engineer, or the district engineer, the persons
Taxes. – Real property declared for the first time shall be assessed for performing their duties, whether in an acting capacity or as a duly
taxes for the period during which it would have been liable but in no case designated officer-in-charge, shall automatically become the chairman or
for more than ten (10) years prior to the date of initial assessment: member, respectively, of the said Board, as the case may be.
Provided, however, That such taxes shall be computed on the basis of
the applicable schedule of values in force during the corresponding SECTION 228. Meetings and Expenses of the Local
period. Board of Assessment Appeals. – (a) The Board of Assessment
Appeals of the province or city shall meet once a month and as often as
If such taxes are paid on or before the end of the quarter following the may be necessary for the prompt disposition of appealed cases. No
date the notice of assessment was received by the owner or his member of the Board shall be entitled to per diems or traveling expenses
representative, no interest for delinquency shall be imposed thereon; for his attendance in Board meetings, except when conducting an ocular
otherwise, such taxes shall be subject to an interest at the rate of two inspection in connection with a case under appeal.
percent (2%) per month or a fraction thereof from the date of the receipt
of the assessment until such taxes are fully paid. (b) All expenses of the Board shall be charged against the general fund
of the province or city, as the case may be. The sanggunian concerned
SECTION 223. Notification of New or Revised shall appropriate the necessary funds to enable the Board in their
Assessment. – When real property is assessed for the first time or when respective localities to operate effectively.
an existing assessment is increased or decreased, the provincial, city or
municipal assessor shall within thirty (30) days give written notice of such SECTION 229. Action by the Local Board of Assessment
new or revised assessment to the person in whose name the property is Appeals. – (a) The Board shall decide the appeal within one hundred
declared. The notice may be delivered personally or by registered mail twenty (120) days from the date of receipt of such appeal. The Board,
or through the assistance of the punong barangay to the last known after hearing, shall render its decision based on substantial evidence or
address of the person to be served. such relevant evidence on record as a reasonable mind might accept as
adequate to support the conclusion.
SECTION 224. Appraisal and Assessment of Machinery.
– (a) The fair market value of a brand-new machinery shall be the (b) In the exercise of its appellate jurisdiction, the Board shall have the
acquisition cost. In all other cases, the fair market value shall be power to summon witnesses, administer oaths, conduct ocular
determined by dividing the remaining economic life of the machinery by inspection, take depositions, and issue subpoena and subpoena duces
its estimated economic life and multiplied by the replacement or tecum. The proceedings of the Board shall be conducted solely for the
reproduction cost. purpose of ascertaining the facts without necessarily adhering to
technical rules applicable in judicial proceedings.
(b) If the machinery is imported, the acquisition cost includes freight,
insurance, bank and other charges, brokerage, arrastre and handling, (c) The secretary of the Board shall furnish the owner of the property or
duties and taxes, plus cost of inland transportation, handling, and the person having legal interest therein and the provincial or city assessor
installation charges at the present site. The cost in foreign currency of with a copy of the decision of the Board. In case the provincial or city
imported machinery shall be converted to peso cost on the basis of assessor concurs in the revision or the assessment, it shall be his duty to
foreign currency exchange rates as fixed by the Central Bank. notify the owner of the property or the person having legal interest
therein of such fact using the form prescribed for the purpose. The owner
SECTION 225. Depreciation Allowance for Machinery. – of the property or the person having legal interest therein or the assessor
For purposes of assessment, a depreciation allowance shall be made for who is not satisfied with the decision of the Board, may, within thirty
machinery at a rate not exceeding five percent (5%) of its original cost (30) days after receipt of the decision of said Board, appeal to the Central
or its replacement or reproduction cost, as the case may be, for each Board of Assessment Appeals, as herein provided. The decision of the
year of use: Provided, however, That the remaining value for all kinds of Central Board shall be final and executory.
machinery shall be fixed at not less than twenty percent (20%) of such
original, replacement, or reproduction cost for so long as the machinery SECTION 230. Central Board of Assessment Appeals. –
is useful and in operation. The Central Board of Assessment Appeals shall be composed of a
chairman and two (2) members to be appointed by the President, who
shall serve for a term of seven (7) years, without reappointment. Of
CHAPTER III those first appointed, the chairman shall hold office for seven (7) years,
Assessment Appeals one member for five (5) years, and the other member for three (3) years.
Appointment to any vacancy shall be only for the unexpired portion of
SECTION 226. Local Board of Assessment Appeals. – the term of the predecessor. In no case shall any member be appointed
Any owner or person having legal interest in the property who is not or designated in a temporary or acting capacity. The chairman and the
satisfied with the action of the provincial, city or municipal assessor in members of the Board shall be Filipino citizens, at least forty (40) years
the assessment of his property may, within sixty (60) days from the date old at the time of their appointment, and members of the Bar or Certified
of receipt of the written notice of assessment, appeal to the Board of Public Accountants for at least ten (10) years immediately preceding their
Assessment Appeals of the province or city by filing a petition under oath appointment. The chairman of the Board of Assessment Appeals shall
in the form prescribed for the purpose, together with copies of the tax have the salary grade equivalent to the rank of Director III under the
declarations and such affidavits or documents submitted in support of Salary Standardization Law exclusive of allowances and other
the appeal. emoluments. The members of the Board shall have the salary grade
equivalent to the rank of Director II under the Salary Standardization
SECTION 227. Organization, Powers, Duties, and
Law exclusive of allowances and other emoluments. The Board shall have
Functions of the Local Board of Assessment Appeals. – (a) The
appellate jurisdiction over all assessment cases decided by the Local
Board of Assessment Appeals of the province or city shall be composed
Board of Assessment Appeals.
of the Registrar of Deeds, as Chairman, the provincial or city prosecutor
and the provincial, or city engineer as members, who shall serve as such There shall be Hearing Officers to be appointed by the Central Board of
in an ex officio capacity without additional compensation. Assessment Appeals pursuant to civil service laws, rules and regulations,
one each for Luzon, Visayas and Mindanao, who shall hold office in
(b) The chairman of the Board shall have the power to designate any
Manila, Cebu City and Cagayan de Oro City, respectively, and who shall
employee of the province or city to serve as secretary to the Board also
serve for a term of six (6) years, without reappointment until their
without additional compensation.
successors have been appointed and qualified. The Hearing Officers shall
(c) The chairman and members of the Board of Assessment Appeals of have the same qualifications as that of the Judges of the Municipal Trial
the province or city shall assume their respective positions without need Courts.
of further appointment or special designation immediately upon
The Hearing Officers shall each have the salary grade equivalent to the
effectivity of this Code. They shall take oath or affirmation of office in
rank of Director I under the Salary Standardization Law exclusive of
the prescribed form.
allowances and other emoluments. The Hearing Officers shall try and
(d) In provinces and cities without a provincial or city engineer, the receive evidences on the appealed assessment cases as may be directed
district engineer shall serve as member of the Board. In the absence of by the Board.
the Registrar of Deeds, or the provincial or city prosecutor, or the
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The Central Board Assessment Appeals, in the performance of its powers SECTION 237. Idle Lands, Coverage. – For purposes of
and duties, may establish and organize staffs, offices, units, prescribe real property taxation, idle lands shall include the following: (a)
the titles, functions and duties of their members and adopt its own rules Agricultural lands, more than one (1) hectare in area, suitable for
and regulations. cultivation, dairying, inland fishery, and other agricultural uses, one-half
(1/2) of which remain uncultivated or unimproved by the owner of the
Unless otherwise provided by law, the annual appropriations for the property or person having legal interest therein. Agricultural lands
Central Board of Assessment Appeals shall be included in the budget of planted to permanent or perennial crops with at least fifty (50) trees to
the Department of Finance in the corresponding General Appropriations a hectare shall not be considered idle lands. Lands actually used for
Act. grazing purposes shall likewise not be considered idle lands.
SECTION 231. Effect of Appeal on the Payment of Real (b) Lands, other than agricultural, located in a city or municipality, more
Property Tax. – Appeal on assessments of real property made under than one thousand (1,000) square meters in area one-half (1/2) of which
the provisions of this Code shall, in no case, suspend the collection of the remain unutilized or unimproved by the owner of the property or person
corresponding realty taxes on the property involved as assessed by the having legal interest therein.
provincial or city assessor, without prejudice to subsequent adjustment
depending upon the final outcome of the appeal. Regardless of land area, this section shall likewise apply to residential
lots in subdivisions duly approved by proper authorities, the ownership
of which has been transferred to individual owners, who shall be liable
CHAPTER IV for the additional tax: Provided, however, That individual lots of such
Imposition of Real Property Tax subdivisions, the ownership of which has not been transferred to the
buyer shall be considered as part of the subdivision, and shall be subject
SECTION 232. Power to Levy Real Property Tax. – A
to the additional tax payable by subdivision owner or operator.
province or city or a municipality within the Metropolitan Manila Area my
levy an annual ad valorem tax on real property such as land, building, SECTION 238. Idle Lands Exempt from Tax. – A province
machinery, and other improvement not hereinafter specifically or city or a municipality within the Metropolitan Manila Area may exempt
exempted. idle lands from the additional levy by reason of force majeure, civil
disturbance, natural calamity or any cause or circumstance which
SECTION 233. Rates of Levy. – A province or city or a
physically or legally prevents the owner of the property or person having
municipality within the Metropolitan Manila Area shall fix a uniform rate
legal interest therein from improving, utilizing or cultivating the same.
of basic real property tax applicable to their respective localities as
follows: SECTION 239. Listing of Idle Lands by the Assessor. –
The provincial, city or municipal assessor shall make and keep an
(a) In the case of a province, at the rate not exceeding one percent (1%)
updated record of all idle lands located within his area of jurisdiction. For
of the assessed value of real property; and
purposes of collection, the provincial, city or municipal assessor shall
(b) In the case of a city or a municipality within the Metropolitan Manila furnish a copy thereof to the provincial or city treasurer who shall notify,
Area, at the rate not exceeding two percent (2%) of the assessed value on the basis of such record, the owner of the property or person having
of real property. legal interest therein of the imposition of the additional tax.

SECTION 234. Exemptions from Real Property Tax. – SECTION 240. Special Levy by Local Government Units.
The following are exempted from payment of the real property tax: – A province, city or municipality may impose a special levy on the lands
comprised within its territorial jurisdiction specially benefited by public
(a) Real property owned by the Republic of the Philippines or any of its works projects or improvements funded by the local government unit
political subdivisions except when the beneficial use thereof has been concerned: Provided, however, That the special levy shall not exceed
granted, for consideration or otherwise, to a taxable person; sixty percent (60%) of the actual cost of such projects and
(b) Charitable institutions, churches, parsonages or convents improvements, including the costs of acquiring land and such other real
appurtenant thereto, mosques, non-profit or religious cemeteries and all property in connection therewith: Provided, further, That the special levy
lands, buildings, and improvements actually, directly, and exclusively shall not apply to lands exempt from basic real property tax and the
used for religious, charitable or educational purposes; remainder of the land portions of which have been donated to the local
government unit concerned for the construction of such projects or
(c) All machineries and equipment that are actually, directly and improvements.
exclusively used by local water districts and government-owned or -
controlled corporations engaged in the supply and distribution of water SECTION 241. Ordinance Imposing a Special Levy. – A
and/or generation and transmission of electric power; tax ordinance imposing a special levy shall describe with reasonable
accuracy the nature, extent, and location of the public works projects or
(d) All real property owned by duly registered cooperatives as provided improvements to be undertaken, state the estimated cost thereof, specify
for under R.A. No. 6938; and the metes and bounds by monuments and lines and the number of
annual installments for the payment of the special levy which in no case
(e) Machinery and equipment used for pollution control and
shall be less than five (5) nor more than ten (10) years. The sanggunian
environmental protection.
concerned shall not be obliged, in the apportionment and computation
Except as provided herein, any exemption from payment of real property of the special levy, to establish a uniform percentage of all lands subject
tax previously granted to, or presently enjoyed by, all persons, whether to the payment of the tax for the entire district, but it may fix different
natural or juridical, including all government-owned or -controlled rates for different parts or sections thereof, depending on whether such
corporations are hereby withdrawn upon the effectivity of this Code. land is more or less benefited by the proposed work.
SECTION 242. Publication of Proposed Ordinance
CHAPTER V Imposing a Special Levy. – Before the enactment of an ordinance
Special Levies on Real Property imposing a special levy, the sanggunian concerned shall conduct a public
hearing thereon; notify in writing the owners of the real property to be
SECTION 235. Additional Levy on Real Property for the affected or the persons having legal interest therein as to the date and
Special Education Fund (SEF). – A province or city, or a municipality place thereof and afford the latter the opportunity to express their
within the Metropolitan Manila Area, may levy and collect an annual tax positions or objections relative to the proposed ordinance.
of one percent (1%) on the assessed value of real property which shall
be in addition to the basic real property tax. The proceeds thereof shall SECTION 243. Fixing the Amount of Special Levy. – The
exclusively accrue to the Special Education Fund (SEF). special levy authorized herein shall be apportioned, computed, and
assessed according to the assessed valuation of the lands affected as
SECTION 236. Additional Ad Valorem Tax on Idle shown by the books of the assessor concerned, or its current assessed
Lands. – A province or city, or a municipality within the Metropolitan value as fixed by said assessor if the property does not appear of record
Manila Area, may levy an annual tax on idle lands at the rate not in his books. Upon the effectivity of the ordinance imposing special levy,
exceeding five percent (5%) of the assessed value of the property which the assessor concerned shall forthwith proceed to determine the annual
shall be in addition to the basic real property tax. amount of special levy assessed against each parcel of land comprised
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within the area especially benefited and shall send to each landowner a SECTION 252. Payment Under Protest. – (a) No protest
written notice thereof by mail, personal service or publication in shall be entertained unless the taxpayer first pays the tax. There shall be
appropriate cases. annotated on the tax receipts the words “paid under protest”. The protest
in writing must be filed within thirty (30) days from payment of the tax
SECTION 244. Taxpayer’s Remedies Against Special to the provincial, city treasurer or municipal treasurer, in the case of a
Levy. – Any owner of real property affected by a special levy or any municipality within Metropolitan Manila Area, who shall decide the
person having a legal interest therein may, upon receipt of the written protest within sixty (60) days from receipt.
notice of assessment of the special levy, avail of the remedies provided
for in Chapter 3, Title Two, Book II of this Code. (b) The tax or a portion thereof paid under protest shall be held in trust
by the treasurer concerned.
SECTION 245. Accrual of Special Levy. – The special levy
shall accrue on the first day of the quarter next following the effectivity (c) In the event that the protest is finally decided in favor of the taxpayer,
of the ordinance imposing such levy. the amount or portion of the tax protested shall be refunded to the
protestant, or applied as tax credit against his existing or future tax
liability.
CHAPTER VI
Collection of Real Property Tax (d) In the event that the protest is denied or upon the lapse of the sixty-
day period prescribed in subparagraph (a), the taxpayer may avail of the
SECTION 246. Date of Accrual of Tax. – The real property remedies as provided for in Chapter 3, Title II, Book II of this Code.
tax for any year shall accrue on the first (1st) day of January and from
that date it shall constitute a lien on the property which shall be superior SECTION 253. Repayment of Excessive Collections. –
to any other lien, mortgage, or encumbrance of any kind whatsoever, When an assessment of basic real property tax, or any other tax levied
and shall be extinguished only upon the payment of the delinquent tax. under this Title, is found to be illegal or erroneous and the tax is
accordingly reduced or adjusted, the taxpayer may file a written claim
SECTION 247. Collection of Tax. – The collection of the for refund or credit for taxes and interests with the provincial or city
real property tax with interest thereon and related expenses, and the treasurer within two (2) years from the date the taxpayer is entitled to
enforcement of the remedies provided for in this Title or any applicable such reduction or adjustment.
laws, shall be the responsibility of the city or municipal treasurer
concerned. 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
The city or municipal treasurer may deputize the barangay treasurer to tax refund or credit is denied, the taxpayer may avail of the remedies as
collect all taxes on real property located in the barangay: Provided, That provided in Chapter 3, Title II, Book II of this Code.
the barangay treasurer is properly bonded for the purpose: Provided,
further, That the premium on the bond shall be paid by the city or SECTION 254. Notice of Delinquency in the Payment of
municipal government concerned. the Real Property Tax. – (a) When the real property tax or any other
tax imposed under this Title becomes delinquent, the provincial, city or
SECTION 248. Assessor to Furnish Local Treasurer with municipal treasurer shall immediately cause a notice of the delinquency
Assessment Roll. – The provincial, city or municipal assessor shall to be posted at the main entrance of the provincial capitol, or city or
prepare and submit to the treasurer of the local government unit, on or municipal hall and in a publicly accessible and conspicuous place in each
before the thirty-first (31st) day of December each year, an assessment barangay of the local government unit concerned. The notice of
roll containing a list of all persons whose real properties have been newly delinquency shall also be published once a week for two (2) consecutive
assessed or reassessed and the values of such properties. weeks, in a newspaper of general circulation in the province, city, or
municipality.
SECTION 249. Notice of Time for Collection of Tax. –
The city or municipal treasurer shall, on or before the thirty-first (31st) (b) Such notice shall specify the date upon which the tax became
day of January each year, in the case of the basic real property tax and delinquent and shall state that personal property may be distrained to
the additional tax for the Special Education Fund (SEF) or any other date effect payment. It shall likewise state that at any time before the distraint
to be prescribed by the sanggunian concerned in the case of any other of personal property, payment of the tax with surcharges, interests and
tax levied under this Title, post the notice of the dates when the tax may penalties may be made in accordance with the next following section,
be paid without interest at a conspicuous and publicly accessible place at and unless the tax, surcharges and penalties are paid before the
the city or municipal hall. Said notice shall likewise be published in a expiration of the year for which the tax is due, except when the notice
newspaper of general circulation in the locality once a week for two (2) of assessment or special levy is contested administratively or judicially
consecutive weeks. pursuant to the provisions of Chapter 3, Title II, Book II of this Code, the
delinquent real property will be sold at public auction, and the title to the
SECTION 250. Payment of Real Property Taxes in
property will be vested in the purchaser, subject, however, to the right
Installments. – The owner of the real property or the person having
of the delinquent owner of the property or any person having legal
legal interest therein may pay the basic real property tax and the
interest therein to redeem the property within one (1) year from the date
additional tax for Special Education Fund (SEF) due thereon without
of sale.
interest in four (4) equal installments: the first installment to be due and
payable on or before the thirty-first (31st) of March; the second SECTION 255. Interests on Unpaid Real Property Tax.
installment, on or before the thirty (30th) of June; the third installment, – In case of failure to pay the basic real property tax or any other tax
on or before the thirtieth (30th) of September; and the last installment levied under this Title upon the expiration of the periods as provided in
on or before the thirty-first (31st) of December, except the special levy Section 250, or when due, as the case may be, shall subject the taxpayer
the payment of which shall be governed by ordinance of the sanggunian to the payment of interest at the rate of two percent (2%) per month on
concerned. the unpaid amount or a fraction thereof, until the delinquent tax shall
have been fully paid: Provided, however, That in no case shall the total
The date for the payment of any other tax imposed under this Title
interest on the unpaid tax or portion thereof exceed thirty-six (36)
without interest shall be prescribed by the sanggunian concerned.
months.
Payments of real property taxes shall first be applied to prior years
SECTION 256. Remedies For The Collection Of Real
delinquencies, interests, and penalties, if any, and only after said
Property Tax. – For the collection of the basic real property tax and any
delinquencies are settled may tax payments be credited for the current
other tax levied under this Title, the local government unit concerned
period.
may avail of the remedies by administrative action through levy on real
SECTION 251. Tax Discount for Advanced Prompt property or by judicial action.
Payment. – If the basic real property tax and the additional tax accruing
SECTION 257. Local Government’s Lien. – The basic real
to the Special Education Fund (SEF) are paid in advance in accordance
property tax and any other tax levied under this Title constitute a lien on
with the prescribed schedule of payment as provided under Section 250,
the property subject to tax, superior to all liens, charges or
the sanggunian concerned may grant a discount not exceeding twenty
encumbrances in favor of any person, irrespective of the owner or
percent (20%) of the annual tax due.
possessor thereof, enforceable by administrative or judicial action, and

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may only be extinguished upon payment of the tax and the related thereon, and the expenses of sale from the date of delinquency to the
interests and expenses. date of sale, plus interest of not more than two percent (2%) per month
on the purchase price from the date of sale to the date of redemption.
SECTION 258. Levy on Real Property. – After the Such payment shall invalidate the certificate of sale issued to the
expiration of the time required to pay the basic real property tax or any purchaser and the owner of the delinquent real property or person having
other tax levied under this Title, real property subject to such tax may legal interest therein shall be entitled to a certificate of redemption which
be levied upon through the issuance of a warrant on or before, or shall be issued by the local treasurer or his deputy.
simultaneously with, the institution of the civil action for the collection of
the delinquent tax. The provincial or city treasurer, or a treasurer of a From the date of sale until the expiration of the period of redemption,
municipality within the Metropolitan Manila Area, as the case may be, the delinquent real property shall remain in the possession of the owner
when issuing a warrant of levy shall prepare a duly authenticated or person having legal interest therein who shall be entitled to the income
certificate showing the name of the delinquent owner of the property or and other fruits thereof.
person having legal interest therein, the description of the property, the
amount of the tax due and the interest thereon. The warrant shall The local treasurer or his deputy, upon receipt from the purchaser of the
operate with the force of a legal execution throughout the province, city certificate of sale, shall forthwith return to the latter the entire amount
or a municipality within the Metropolitan Manila Area. The warrant shall paid by him plus interest of not more than two percent (2%) per month.
be mailed to or served upon the delinquent owner of the real property Thereafter, the property shall be free from the lien of such delinquent
or person having legal interest therein, or in case he is out of the country tax, interest due thereon and expenses of sale.
or cannot be located, the administrator or occupant of the property. At SECTION 262. Final Deed to Purchaser. – In case the
the same time, written notice of the levy with the attached warrant shall owner or person having legal interest therein fails to redeem the
be mailed to or served upon the assessor and the Registrar of Deeds of delinquent property as provided herein, the local treasurer shall execute
the province, city or municipality within the Metropolitan Manila Area a deed conveying to the purchaser said property, free from lien of the
where the property is located, who shall annotate the levy on the tax delinquent tax, interest due thereon and expenses of sale. The deed shall
declaration and certificate of title of the property, respectively. briefly state the proceedings upon which the validity of the sale rests.
The levying officer shall submit a report on the levy to the sanggunian SECTION 263. Purchase of Property By the Local
concerned within ten (10) days after receipt of the warrant by the owner Government Units for Want of Bidder. – In case there is no bidder
of the property or person having legal interest therein. for the real property advertised for sale as provided herein, or if the
SECTION 259. Penalty for Failure to Issue and Execute highest bid is for an amount insufficient to pay the real property tax and
Warrant. – Without prejudice to criminal prosecution under the Revised the related interest and costs of sale the local treasurer conducting the
Penal Code and other applicable laws, any local treasurer or his deputy sale shall purchase the property in behalf of the local government unit
who fails to issue or execute the warrant of levy within one (1) year from concerned to satisfy the claim and within two (2) days thereafter shall
the time the tax becomes delinquent or within thirty (30) days from the make a report of his proceedings which shall be reflected upon the
date of the issuance thereof, or who is found guilty of abusing the records of his office. It shall be the duty of the Registrar of Deeds
exercise thereof in an administrative or judicial proceeding shall be concerned upon registration with his office of any such declaration of
dismissed from the service. forfeiture to transfer the title of the forfeited property to the local
government unit concerned without the necessity of an order from a
SECTION 260. Advertisement and Sale. – Within thirty (30) days after competent court.
service of the warrant of levy, the local treasurer shall proceed to publicly
advertise for sale or auction the property or a usable portion thereof as Within one (1) year from the date of such forfeiture, the taxpayer or any
may be necessary to satisfy the tax delinquency and expenses of sale. of his representative, may redeem the property by paying to the local
The advertisement shall be effected by posting a notice at the main treasurer the full amount of the real property tax and the related interest
entrance of the provincial, city or municipal building, and in a publicly and the costs of sale. If the property is not redeemed as provided herein,
accessible and conspicuous place in the barangay where the real the ownership thereof shall be vested on the local government unit
property is located, and by publication once a week for two (2) weeks in concerned.
a newspaper of general circulation in the province, city or municipality SECTION 264. Resale of Real Estate Taken for Taxes,
where the property is located. The advertisement shall specify the Fees, or Charges. – The sanggunian concerned may, by ordinance duly
amount of the delinquent tax, the interest due thereon and expenses of approved, and upon notice of not less than twenty (20) days, sell and
sale, the date and place of sale, the name of the owner of the real dispose of the real property acquired under the preceding section at
property or person having legal interest therein, and a description of the public auction. The proceeds of the sale shall accrue to the general fund
property to be sold. At any time before the date fixed for the sale, the of the local government unit concerned.
owner of the real property or person having legal interest therein may
stay the proceedings by paying the delinquent tax, the interest due SECTION 265. Further Distraint or Levy. – Levy may be
thereon and the expenses of sale. The sale shall be held either at the repeated if necessary until the full amount due, including all expenses, is
main entrance of the provincial, city or municipal building, or on the collected.
property to be sold, or at any other place as specified in the notice of the
SECTION 266. Collection of Real Property Tax Through
sale.
the Courts. – The local government unit concerned may enforce the
Within thirty (30) days after the sale, the local treasurer or his deputy collection of the basic real property tax or any other tax levied under this
shall make a report of the sale to the sanggunian concerned, and which Title by civil action in any court of competent jurisdiction. The civil action
shall form part of his records. The local treasurer shall likewise prepare shall be filed by the local treasurer within the period prescribed in Section
and deliver to the purchaser a certificate of sale which shall contain the 270 of this Code.
name of the purchaser, a description of the property sold, the amount of
SECTION 267. Action Assailing Validity of Tax Sale. –
the delinquent tax, the interest due thereon, the expenses of sale and a
No court shall entertain any action assailing the validity of any sale at
brief description of the proceedings: Provided, however, That proceeds
public auction of real property or rights therein under this Title until the
of the sale in excess of the delinquent tax, the interest due thereon, and
taxpayer shall have deposited with the court the amount for which the
the expenses of sale shall be remitted to the owner of the real property
real property was sold, together with interest of two percent (2%) per
or person having legal interest therein.
month from the date of sale to the time of the institution of the action.
The local treasurer may, by ordinance duly approved, advance an The amount so deposited shall be paid to the purchaser at the auction
amount sufficient to defray the costs of collection through the remedies sale if the deed is declared invalid but it shall be returned to the depositor
provided for in this Title, including the expenses of advertisement and if the action fails.
sale.
Neither shall any court declare a sale at public auction invalid by reason
SECTION 261. Redemption of Property Sold. – Within of irregularities or informalities in the proceedings unless the substantive
one (1) year from the date of sale, the owner of the delinquent real rights of the delinquent owner of the real property or the person having
property or person having legal interest therein, or his representative, legal interest therein have been impaired.
shall have the right to redeem the property upon payment to the local
treasurer of the amount of the delinquent tax, including the interest due
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 SECTION 268. Payment of Delinquent Taxes on (2) Municipality – Thirty-five percent (35%) shall accrue to the
Property Subject of Controversy. – In any action involving the general fund of the municipality where the property is located;
ownership or possession of, or succession to, real property, the court
may, motu proprio or upon representation of the provincial, city, or (3) Barangays – Thirty percent (30%) shall be distributed among the
municipal treasurer or his deputy, award such ownership, possession, or component barangays of the municipality where the property is
succession to any party to the action upon payment to the court of the located in the following manner:
taxes with interest due on the property and all other costs that may have (i) Fifty percent (50%) shall accrue to the barangay where the
accrued, subject to the final outcome of the action. property is located; and
SECTION 269. Treasurer to Certify Delinquencies (ii) Fifty percent (50%) shall accrue equally to all component
Remaining Uncollected. – The provincial, city or municipal treasurer barangays of the municipality.
or his deputy shall prepare a certified list of all real property tax
delinquencies which remained uncollected or unpaid for at least one (1) (d) The share of each barangay shall be released, without need of any
year in his jurisdiction, and a statement of the reason or reasons for such further action, directly to the barangay treasurer on a quarterly basis
non-collection or non-payment, and shall submit the same to the within five (5) days after the end of each quarter and shall not be subject
sanggunian concerned on or before the thirty-first (31st) of December of to any lien or holdback for whatever purpose.
the year immediately succeeding the year in which the delinquencies
SECTION 272. Application of Proceeds of the Additional
were incurred, with a request for assistance in the enforcement of the
One Percent SEF Tax. – The proceeds from the additional one percent
remedies for collection provided herein.
(1%) tax on real property accruing to the Special Education Fund (SEF)
SECTION 270. Periods Within Which to Collect Real shall be automatically released to the local school boards: Provided, That,
Property Taxes. – The basic real property tax and any other tax levied in case of provinces, the proceeds shall be divided equally between the
under this Title shall be collected within five (5) years from the date they provincial and municipal school boards: Provided, however, That the
become due. No action for the collection of the tax, whether proceeds shall be allocated for the operation and maintenance of public
administrative or judicial, shall be instituted after the expiration of such schools, construction and repair of school buildings, facilities and
period. In case of fraud or intent to evade payment of the tax, such equipment, educational research, purchase of books and periodicals, and
action may be instituted for the collection of the same within ten (10) sports development as determined and approved by the local school
years from the discovery of such fraud or intent to evade payment. board.

The period of prescription within which to collect shall be suspended for SECTION 273. Proceeds of the Tax on Idle Lands. – The
the time during which: proceeds of the additional real property tax on idle lands shall accrue to
the respective general fund of the province or city where the land is
(1) The local treasurer is legally prevented from collecting the tax; located. In the case of a municipality within the Metropolitan Manila Area,
(2) The owner of the property or the person having legal interest therein the proceeds shall accrue equally to the Metropolitan Manila Authority
requests for reinvestigation and executes a waiver in writing before the and the municipality where the land is located.
expiration of the period within which to collect; and SECTION 274. Proceeds of the Special Levy. – The
(3) The owner of the property or the person having legal interest therein proceeds of the special levy on lands benefited by public works, projects
is out of the country or otherwise cannot be located. and other improvements shall accrue to the general fund of the local
government unit which financed such public works, projects or other
improvements.
CHAPTER VII
Disposition of Proceeds
CHAPTER VIII
SECTION 271. Distribution of Proceeds. – The proceeds Special Provisions
of the basic real property tax, including interest thereon, and proceeds
from the use, lease or disposition, sale or redemption of property SECTION 275. General Assessment Revision; Expenses
acquired at a public auction, in accordance with the provisions of this Incident Thereto. – The sanggunian of provinces, cities and
Title, by the province or city or a municipality within the Metropolitan municipalities within the Metropolitan Manila Area shall provide the
Manila Area shall be distributed as follows: necessary appropriations to defray the expenses incident to the general
revision of real property assessment.
(a) In the case of provinces:
All expenses incident to a general revision of real property assessments
(1) Province – Thirty-five percent (35%) shall accrue to the general shall, by ordinance of the sangguniang panlalawigan, be apportioned
fund; between the province and the municipality on the basis of the taxable
area of the municipality concerned.
(2) Municipality – Forty percent (40%) to the general fund of the
municipality where the property is located; and SECTION 276. Condonation or Reduction of Real
Property Tax and Interest. – In case of a general failure of crops or
(3) Barangay – Twenty-five percent (25%) shall accrue to the substantial decrease in the price of agricultural or agribased products, or
barangay where the property is located. calamity in any province, city or municipality, the sanggunian concerned,
(b) In the case of cities: by ordinance passed prior to the first (1st) day of January of any year
and upon recommendation of the Local Disaster Coordinating
(1) City – Seventy percent (70%) shall accrue to the general fund of Council, may condone or reduce, wholly or partially, the taxes and
the city; and interest thereon for the succeeding year or years in the city or
municipality affected by the calamity.
(2) Barangay – Thirty percent (30%) shall be distributed among the
component barangays of the cities where the property is located in SECTION 277. Condonation or Reduction of Tax by the
the following manner: President of the Philippines. – The President of the Philippines may,
when public interest so requires, condone or reduce the real property tax
(i) Fifty percent (50%) shall accrue to the barangay where the
and interest for any year in any province or city or a municipality within
property is located;
the Metropolitan Manila Area.
(ii) Fifty percent (50%) shall accrue equally to all component
SECTION 278. Duty of Registrar of Deeds and Notaries
barangays of the city; and
Public to Assist the Provincial, City or Municipal Assessor. – It
(c) In the case of a municipality within the Metropolitan Manila Area: shall be the duty of the Registrar of Deeds and notaries public to furnish
the provincial, city or municipal assessor with copies of all contracts
(1) Metropolitan Manila Authority – Thirty-five percent (35%) shall selling, transferring, or otherwise conveying, leasing, or mortgaging real
accrue to the general fund of the Authority; property received by, or acknowledged before them.

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 SECTION 279. Insurance Companies to Furnish Provided, further, That the share of each barangay with a population of
Information. – Insurance companies are hereby required to furnish the not less than one hundred (100) inhabitants shall not be less than Eighty
provincial, city or municipal assessor copies of any contract or policy thousand (P80,000.00) per annum chargeable against the twenty
insurance on buildings, structures, and improvements insured by them percent (20%) share of the barangay from the internal revenue
or such other documents which may be necessary for the proper allotment, and the balance to be allocated on the basis of the following
assessment thereof. formula:
SECTION 280. Fees in Court Actions. – All court actions, (a) On the first year of the effectivity of this Code:
criminal or civil, instituted at the instance of the provincial, city or
municipal treasurer or assessor under the provisions of this Code, shall (1) Population – Forty percent (40%); and
be exempt from the payment of court and sheriff’s fees. (2) Equal Sharing – Sixty percent (60%)
SECTION 281. Fees in Registration of Papers or (b) On the second year:
Documents on Sale of Delinquent Real Property to Province, City
or Municipality. – All certificates, documents, and papers covering the (1) Population – Fifty percent (50%); and
sale of delinquent property to the province, city or municipality, if
(2) Equal Sharing – Fifty percent (50%)
registered in the Registry of Property, shall be exempt from the
documentary stamp tax and registration fees. (c) On the third year and thereafter:
SECTION 282. Real Property Assessment Notices or (1) Population – Sixty percent (60%); and
Owner’s Copies of Tax Declarations to be Exempt from Postal
Charges or Fees. – All real property assessment notices or owner’s (2) Equal sharing – Forty percent (40%).
copies of tax declaration sent through the mails by the assessor shall be Provided, finally, That the financial requirements of barangays created
exempt from the payment of postal charges or fees. by local government units after the effectivity of this Code shall be the
SECTION 283. Sale and Forfeiture Before Effectivity of responsibility of the local government unit concerned.
Code. – Tax delinquencies incurred, and sales and forfeitures of SECTION 286. Automatic Release of Shares. – (a) The
delinquent real property effected, before the effectivity of this Code shall share of each local government unit shall be released, without need of
be governed by the provisions of applicable laws then in force. any further action, directly to the provincial, city, municipal or barangay
treasurer, as the case may be, on a quarterly basis within five (5) days
TITLE III after the end of each quarter, and which shall not be subject to any lien
or holdback that may be imposed by the National Government for
Shares of Local Government Units in the Proceeds of National
whatever purpose.
Taxes
CHAPTER I (b) Nothing in this Chapter shall be understood to diminish the share of
Allotment of Internal Revenue local government units under existing laws.

SECTION 284. Allotment of Internal Revenue Taxes. – SECTION 287. Local Development Projects. – Each local
Local government units shall have a share in the national internal government unit shall appropriate in its annual budget no less than
revenue taxes based on the collection of the third fiscal year preceding twenty percent (20%) of its annual internal revenue allotment for
the current fiscal year as follows: development projects. Copies of the development plans of local
government units shall be furnished the Department of Interior and Local
(a) On the first year of the effectivity of this Code, thirty percent (30%); Government.
(b) On the second year, thirty-five percent (35%); and SECTION 288. Rules and Regulations. – The Secretary of
(c) On the third year and thereafter, forty percent (40%). Finance, in consultation with the Secretary of Budget and Management,
shall promulgate the necessary rules and regulations for a simplified
Provided, That in the event that the National Government incurs an disbursement scheme designed for the speedy and effective enforcement
unmanageable public sector deficit, the President of the Philippines is of the provisions of this Chapter.
hereby authorized, upon the recommendation of Secretary of Finance,
Secretary of Interior and Local Government, and Secretary of Budget and
Management, and subject to consultation with the presiding officers of CHAPTER II
both Houses of Congress and the presidents of the “liga”, to make the Share of Local Government Units in the National Wealth
necessary adjustments in the internal revenue allotment of local
SECTION 289. Share in the Proceeds from the
government units but in no case shall the allotment be less than thirty
Development and Utilization of the National Wealth. – Local
percent (30%) of the collection of national internal revenue taxes of the
government units shall have an equitable share in the proceeds derived
third fiscal year preceding the current fiscal year: Provided, further, That
from the utilization and development of the national wealth within their
in the first year of the effectivity of this Code, the local government units
respective areas, including sharing the same with the inhabitants by way
shall, in addition to the thirty percent (30%) internal revenue allotment
of direct benefits.
which shall include the cost of devolved functions for essential public
services, be entitled to receive the amount equivalent to the cost of SECTION 290. Amount of Share of Local Government
devolved personal services. Units. – Local government units shall, in addition to the internal revenue
allotment, have a share of forty percent (40%) of the gross collection
SECTION 285. Allocation to Local Government Units. –
derived by the national government from the preceding fiscal year from
The share of local government units in the internal revenue allotment
mining taxes, royalties, forestry and fishery charges, and such other
shall be allocated in the following manner:
taxes, fees, or charges, including related surcharges, interests, or fines,
(a) Provinces – Twenty-three percent (23%); and from its share in any co-production, joint venture or production
sharing agreement in the utilization and development of the national
(b) Cities – Twenty-three percent (23%); wealth within their territorial jurisdiction.
(c) Municipalities – Thirty-four percent (34%); and SECTION 291. Share of the Local Governments from
(d) Barangays – Twenty percent (20%) any Government Agency or Government-Owned or -Controlled
Corporation. – Local government units shall have a share based on the
Provided, however, That the share of each province, city, and preceding fiscal year from the proceeds derived by any government
municipality shall be determined on the basis of the following formula: agency or government-owned or -controlled corporation engaged in the
utilization and development of the national wealth based on the following
(a) Population – Fifty percent (50%); formula whichever will produce a higher share for the local government
(b) Land Area – Twenty-five percent (25%); and unit:

(c) Equal sharing – Twenty-five percent (25%)

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(a) One percent (1%) of the gross sales or receipts of the preceding infrastructure facilities, housing projects, the acquisition of real property,
calendar year; or and the implementation of other capital investment projects, subject to
such terms and conditions as may be agreed upon by the local
(b) Forty percent (40%) of the mining taxes, royalties, forestry and government unit and the lender. The proceeds from such transactions
fishery charges and such other taxes, fees or charges, including related shall accrue directly to the local government unit concerned.
surcharges, interests, or fines the government agency or government-
owned or -controlled corporation would have paid if it were not otherwise (b) A local government unit may likewise secure from any government
exempt. bank and lending institution short-, medium- and long-term loans and
advances against security of real estate or other acceptable assets for
SECTION 292. Allocation of Shares. – The share in the preceding section the establishment, development, or expansion of agricultural, industrial,
shall be distributed in the following manner: commercial, house financing and livelihood projects, and other economic
(a) Where the natural resources are located in the province: enterprises.

(1) Province – Twenty percent (20%); (c) Government financial and other lending institutions are hereby
authorized to grant loans, credits, and other forms of indebtedness out
(2) Component City/Municipality – Forty-five percent (45%); and of their loanable funds to local government units for purposes specified
above.
(3) Barangay – Thirty-five percent (35%)
SECTION 298. Deferred-Payment and other Financial
Provided, however, That where the natural resources are located in two
Schemes. – Provincial, city and municipal governments may likewise
(2) or more provinces, or in two (2) or more component cities or
acquire property, plant, machinery, equipment, and such necessary
municipalities or in two (2) or more barangays, their respective shares
accessories under a supplier’s credit, deferred payment plan, or other
shall be computed on the basis of:
financial scheme.
(1) Population – Seventy percent (70%); and
SECTION 299. Bonds and Other Long-Term
(2) Land area – Thirty percent (30%) Securities. – Subject to the rules and regulations of the Central Bank
and the Securities and Exchange Commission, provinces, cities, and
(b) Where the natural resources are located in a highly urbanized or municipalities are hereby authorized to issue bonds, debentures,
independent component city: securities, collaterals, notes and other obligations to finance self-
(1) City – Sixty-five percent (65%); and liquidating, income-producing development or livelihood projects
pursuant to the priorities established in the approved local development
(2) Barangay – Thirty-five percent (35%) plan or the public investment program. The sanggunian concerned shall,
through an ordinance approved by a majority of all its members, declare
Provided, however, That where the natural resources are located in such and state the terms and conditions of the bonds and the purpose for
two (2) or more cities, the allocation of shares shall be based on the
which the proposed indebtedness is to be incurred.
formula on population and land area as specified in paragraph (a) of this
section. SECTION 300. Inter-Local Government Loans, Grants,
and Subsidies. – Provinces, cities, and municipalities may, upon
SECTION 293. Remittance of the Share of Local approval of the majority of all members of the sanggunian concerned
Government Units. – The share of local government units from the and in amounts not exceeding their surplus funds, extend loans, grants,
utilization and development of national wealth shall be remitted in or subsidies to other local government units under such terms and
accordance with Section 286 of this Code: Provided, however, That in
conditions as may be agreed upon by the contracting parties.
the case of any government agency or government-owned or -controlled
corporation engaged in the utilization and development of the national Local government units may, upon approval of their respective
wealth, such share shall be directly remitted to the provincial, city, sanggunians, jointly or severally contract loans, credits, and other forms
municipal or barangay treasurer concerned within five (5) days after the of indebtedness for purposes mutually beneficial to them.
end of each quarter.
SECTION 301. Loans from Funds Secured by the
SECTION 294. Development and Livelihood Projects. – National Government from Foreign Sources. – (a) The President
The proceeds from the share of local government units pursuant to this or his duly authorized representative may, through any government
chapter shall be appropriated by their respective sanggunian to finance financial or other lending institution, relend to any province, city,
local development and livelihood projects: Provided, however, That at municipality, or barangay, the proceeds of loans contracted with foreign
least eighty percent (80%) of the proceeds derived from the financial institutions or other international funding agencies for the
development and utilization of hydrothermal. geothermal, and other purpose of financing the construction, installation, improvement,
sources of energy shall be applied solely to lower the cost of electricity expansion, operation, or maintenance of public utilities and facilities,
in the local government unit where such a source of energy is located. infrastructure facilities, or housing projects, the acquisition of real
property, and the implementation of other capital investment projects,
subject to such terms and conditions as may be agreed upon by the
TITLE IV President and the local government unit. The proceeds from such loans
Credit Financing shall accrue directly to the local government concerned.
SECTION 295. Scope. – This Title shall govern the power of (b) The President may likewise authorize the relending to local
local government units to create indebtedness and to enter into credit government units the proceeds of grants secured from foreign sources,
and other financial transactions. subject to the provisions of existing laws and the applicable grant
SECTION 296. General Policy. – (a) It shall be the basic agreements.
policy that any local government unit may create indebtedness, and avail (c) Repayment or amortization of loans, including accrued interest
of credit facilities to finance local infrastructure and other socio-economic thereon, may be financed partly from the income of the projects or
development projects in accordance with the approved local services and from the regular income of the local government unit, which
development plan and public investment program. must be provided for and appropriated regularly in its annual budget until
(b) A local government unit may avail of credit lines from government or the loan and the interest thereon shall have been fully paid.
private banks and lending institutions for the purpose of stabilizing local SECTION 302. Financing, Construction, Maintenance,
finances. Operation, and Management of Infrastructure Projects by the
Private Sector. – (a) Local government units may enter into contracts
SECTION 297. Loans, Credits, and Other Forms of
with any duly prequalified individual contractor, for the financing,
Indebtedness of Local Government Units. – (a) A local
construction, operation, and maintenance of any financially viable
government unit may contract loans, credits, and other forms of
infrastructure facilities, under the build-operate-transfer agreement,
indebtedness with any government or domestic private bank and other
subject to the applicable provisions of Republic Act Numbered Sixty-nine
lending institutions to finance the construction, installation,
hundred fifty-seven (R.A. No. 6957) authorizing the financing,
improvement, expansion, operation, or maintenance of public facilities,
construction, operation and maintenance of infrastructure projects by the
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private sector and the rules and regulations issued thereunder and such In case of land reclamation or construction of industrial estates, the
terms and conditions provided in this section. repayment plan may consist of the grant of a portion or percentage of
the reclaimed land or the industrial estate constructed.
(b) Local government units shall include in their respective local
development plans and public investment programs priority projects that (5) Every infrastructure project undertaken under this section shall be
may be financed, constructed, operated and maintained by the private constructed, operated, and maintained by the contractor under the
sector under this section. It shall be the duty of the local government technical supervision of the local government unit and in accordance with
unit concerned to disclose to the public all projects eligible for financing the plans, specifications, standards, and costs approved by it.
under this section, including official notification of duly registered
contractors and publication in newspapers of general or local circulation (d) The provincial, city, or municipal legal officer shall, as the case may
and in conspicuous and accessible public places. Local projects under the be, review the contracts executed pursuant to this section to determine
build-operate-and-transfer agreement shall be confirmed by the local their legality, validity, enforceability and correctness of form.
development councils. SECTION 303. Remedies and Sanctions. – Local government unit shall
(c) Projects implemented under this section shall be subject to the appropriate in their respective annual budgets such amounts as are
following terms and conditions: sufficient to pay the loans and other indebtedness incurred or redeem or
retire bonds, debentures, securities, notes and other obligations issued
(1) The provincial, city or municipal engineer, as the case may be, upon under this Title: Provided, That failure to provide the appropriations
formal request in writing by the local chief executive, shall prepare the herein required shall render their annual budgets inoperative.
plans and specifications for the proposed projects, which shall be
submitted to the sanggunian for approval.
TITLE V
(2) Upon approval by the sanggunian of the project plans and Local Fiscal Administration
specifications, the provincial, city, or municipal engineer shall, as the case CHAPTER I
may be, cause to be published once every week, for two (2) consecutive
General Provisions
weeks in at least one (1) local newspaper which is circulated in the
region, province, city or municipality in which the project is to be SECTION 304. Scope. – This Title shall govern the conduct
implemented, a notice inviting all duly qualified contractors to participate and management of financial affairs, transactions, and operations of
in a public bidding for the projects so approved. The conduct of public provinces, cities, municipalities, and barangays.
bidding and award of contracts for local government projects under this
section shall be in accordance with this Code and other applicable laws, SECTION 305. Fundamental Principles. – The financial
rules and regulations. affairs, transactions, and operations of local government units shall be
governed by the following fundamental principles:
In the case of a build-operate-and-transfer agreement, the contract shall
be awarded to the lowest complying bidder whose offer is deemed most (a) No money shall be paid out of the local treasury except in pursuance
advantageous to the local government and based on the present value of an appropriations ordinance or law;
of its proposed tolls, fees, rentals, and charges over a fixed term for the (b) Local government funds and monies shall be spent solely for public
facility to be constructed, operated, and maintained according to the purposes;
prescribed minimum design and performance standards, plans, and
specifications. For this purpose, the winning contractor shall be (c) Local revenue is generated only from sources expressly authorized by
automatically granted by the local government unit concerned the law or ordinance, and collection thereof shall at all times be
franchise to operate and maintain the facility, including the collection of acknowledged properly;
tolls, fees, rentals, and charges in accordance with subsection (c-4)
(d) All monies officially received by a local government officer in any
hereof.
capacity or on any occasion shall be accounted for as local funds, unless
In the case of a build-operate-and-transfer agreement, the contract shall otherwise provided by law;
be awarded to the lowest complying bidder based on the present value
(e) Trust funds in the local treasury shall not be paid out except in
of its proposed schedule of amortization payments for the facility to be
fulfillment of the purpose for which the trust was created or the funds
constructed according to the prescribed minimum design and
received;
performance standards, plans, and specifications.
(f) Every officer of the local government unit whose duties permit or
(3) Any contractor who shall undertake the prosecution of any project
require the possession or custody of local funds shall be properly bonded,
under this section shall post the required bonds to protect the interest of
and such officer shall be accountable and responsible for said funds and
the province, city, or municipality, in such amounts as may be fixed by
for the safekeeping thereof in conformity with the provisions of law;
the sanggunian concerned and the provincial, city or municipal engineer
shall not, as the case may be, allow any contractor to initiate the (g) Local governments shall formulate sound financial plans, and local
prosecution of projects under this section unless such contractor budgets shall be based on functions, activities, and projects, in terms of
presents proof or evidence that he has posted the required bond. expected results;
(4) The contractor shall be entitled to a reasonable return of its (h) Local budget plans and goals shall, as far as practicable, be
investment in accordance with its bid proposal as accepted by the local harmonized with national development plans, goals, and strategies in
government unit concerned. order to optimize the utilization of resources and to avoid duplication in
the use of fiscal and physical resources;
In the case of a build-operate-and-transfer agreement, the repayment
shall be made by authorizing the contractor to charge and collect (i) Local budgets shall operationalize approved local development plans;
reasonable tolls, fees, rentals, and charges for the use of the project
facility not exceeding those proposed in the bid and incorporated in the (j) Local government units shall ensure that their respective budgets
contract: Provided, That the local government unit concerned shall, incorporate the requirements of their component units and provide for
based on reasonableness and equity, approve the tolls, fees, rentals and equitable allocation of resources among these component units;
charges: Provided, further, That the imposition and collection of tolls, (k) National planning shall be based on local planning to ensure that the
fees, rentals and charges shall be for a fixed period as proposed in the needs and aspirations of the people as articulated by the local
bid and incorporated in the contract which shall in no case exceed fifty government units in their respective local development plans are
(50) years: Provided, finally, That during the lifetime of the contract, the considered in the formulation of budgets of national line agencies or
contractor shall undertake the necessary maintenance and repair of the offices;
facility in accordance with standards prescribed in the bidding documents
and in the contract. (l) Fiscal responsibility shall be shared by all those exercising authority
over the financial affairs, transactions, and operations of the local
In the case of a build-operate-and-transfer agreement, the repayment government units; and
shall be made through amortization payments in accordance with the
schedule proposed in the bid and incorporated in the contract. (m) The local government unit shall endeavor to have a balanced budget
in each fiscal year of operation.
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 SECTION 306. Definition of Terms. – When used in this SECTION 309. Special Funds. – There shall be maintained
Title, the term: in every provincial, city, or municipal treasury the following special funds:
(a) “Annual Budget” refers to a financial plan embodying the estimates (a) Special Education Fund (SEF) which shall consist of the respective
of income and expenditures for one (1) fiscal year; shares of provinces, cities, municipalities and barangays in the proceeds
of the additional tax on real property to be appropriated for purposes
(b) “Appropriation” refers to an authorization made by ordinance, prescribed in Section 272 of this Code; and
directing the payment of goods and services from local government funds
under specified conditions or for specific purposes; (b) Trust funds shall consist of private and public monies which have
officially come into the possession of the local government or of a local
(c) “Budget Document” refers to the instrument used by the local chief government official as trustee, agent or administrator, or which have
executive to present a comprehensive financial plan to the sanggunian been received as a guaranty for the fulfillment of some obligation. A trust
concerned; fund shall only be used for the specific purpose for which it was created
(d) “Capital Outlays” refers to appropriations for the purchase of goods or for which it came into the possession of the local government unit.
and services, the benefits of which extend beyond the fiscal year and SECTION 310. Separation of Books and Depository
which add to the assets of the local government unit concerned, including Accounts. – Local accountants and treasurers shall maintain separate
investments in public utilities such as public markets and books and depository accounts, respectively, for each fund in their
slaughterhouses; custody or administration under such rules and regulations as the
(e) “Continuing Appropriation” refers to an appropriation available to Commission on Audit may prescribe.
support obligations for a specified purpose or projects, such as those for SECTION 311. Depository Accounts. – Local treasurers
the construction of physical structures or for the acquisition of real shall maintain depository accounts in the name of their respective local
property or equipment, even when these obligations are incurred beyond government units with banks, preferably government-owned, located in
the budget year; or nearest to their respective areas of jurisdiction. Earnings of each
(f) “Current Operating Expenditures” refers to appropriations for the depository account shall accrue exclusively thereto.
purchase of goods and services for the conduct of normal local SECTION 312. Separation of Personal Money from
government operations within the fiscal year, including goods and Public Funds. – Local treasurers and other accountable officers shall
services that will be used or consumed during the budget year; keep personal monies separate and distinct from local public funds in
(g) “Expected Results” refers to the services, products, or benefits that their custody and shall not make profit out of public money or otherwise
shall accrue to the public, estimated in terms of performance measures apply the same to any use not authorized by law or ordinance.
or physical targets;
(h) “Fund” refers to a sum of money, or other assets convertible to cash, ARTICLE II
set aside for the purpose of carrying out specific activities or attaining Special Accounts
certain objectives in accordance with special regulations, restrictions, or
SECTION 313. Special Accounts to be Maintained in the
limitations, and constitutes an independent fiscal and accounting entity;
General Fund. – Local government units shall maintain special accounts
(i) “Income” refers to all revenues and receipts collected or received in the general fund for the following:
forming the gross accretions of funds of the local government unit;
(a) Public utilities and other economic enterprises;
(j) “Obligations” refers to an amount committed to be paid by the local
government unit for any lawful act made by an accountable officer for (b) Loans, interests, bond issues, and other contributions for specific
and in behalf of the local government unit concerned; purposes; and

(k) “Personal Services” refers to appropriations for the payment of (c) Development projects funded from the share of the local government
salaries, wages and other compensation of permanent, temporary, unit concerned in the internal revenue allotment and such other special
accounts which may be created by law or ordinance.
contractual, and casual employees of the local government unit;
Receipts, transfers, and expenditures involving the foregoing special
(l) “Receipts” refers to income realized from operations and activities of
the local government or are received by it in the exercise of its corporate accounts shall be properly taken up thereunder.
functions, consisting of charges for services rendered, conveniences Profits or income derived from the operation of public utilities and other
furnished, or the price of a commodity sold, as well as loans, economic enterprises, after deduction for the cost of improvement, repair
contributions or aids from other entities, except provisional advances for and other related expenses of the public utility or economic enterprise
budgetary purposes; and concerned, shall first be applied for the return of the advances or loans
(m) “Revenue” refers to income derived from the regular system of made therefor. Any excess shall form part of the general fund of the local
taxation enforced under authority of law or ordinance, and, as such, government unit concerned.
accrue more or less regularly every year. CHAPTER III
Budgeting
ARTICLE I
CHAPTER II Local Government Budgets
Local and Other Special Funds
ARTICLE I SECTION 314. Form and Content. – (a) Local government
budgets shall primarily consists of two (2) parts:
Receipts, Safekeeping Article and Disposition of Local Funds
(1) The estimates of income; and
SECTION 307. Remittance of Government Monies to
the Local Treasury. – Officers of the local government authorized to (2) The total appropriations covering the current operating
receive and collect monies arising from taxes, revenues, or receipts of expenditures and capital outlays.
any kind shall remit the full amount received and collected to the treasury (b) The budget document shall contain:
of such local government unit which shall be credited to the particular
account or accounts to which the monies in question properly belong. (1) A budget message of the local chief executive setting forth in brief
the significance of the executive budget, particularly in relation to the
SECTION 308. Local Funds. – Every local government unit approved local development plan;
shall maintain a General Fund which shall be used to account for such
monies and resources as may be received by and disbursed from the (2) A brief summary of the functions, projects, and activities to be
local treasury. The General Fund shall consist of monies and resources accomplished in pursuit of the goals and objectives of the local
of the local government which are available for the payment of government unit for the ensuing fiscal year, specifically the delivery
expenditures, obligations or purposes not specifically declared by law as of basic services or facilities enumerated under Section 17 of this
accruing and chargeable to, or payable from, any other fund. Code;
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 (3) Summary of financial statements setting forth: Provided, further, That each service shall be covered by the budget of at
least one (1) department or office of the local government unit
(i) The actual income and expenditures during the immediately concerned.
preceding year;
The said budget proposal shall be prepared in accordance with such
(ii) The actual income and expenditures of the first two (2) policy and program guidelines as the local chief executive concerned may
quarters and the estimates of income and expenditures for the last issue in conformity with the local development plan, the budgetary
two (2) quarters of the current fiscal year; ceilings prescribed by the local finance committee, and the general
(iii) The estimates of income for the ensuing fiscal year from requirements prescribed in this Title.
ordinances and laws existing at the time the proposed budget is (b) Budget proposals of departments or offices shall be divided
transmitted, together with other revenue-raising proposals; into two (2) primary categories, namely: the current operating
(iv) The estimated expenditures necessary to carry out the expenditures and the capital outlays. Such budget proposals shall contain
functions, projects, and activities of the local government unit for the following information:
the ensuing fiscal year; (1) Objectives, functions, and projects showing the general character
(v) All essential facts regarding the bonded and other long-term and relative importance of the work to be accomplished or the
obligations and indebtedness of the local government unit, if any; services to be rendered, and the cost thereof;

(vi) Summary statement of all statutory and contractual (2) Organizational charts and staffing patterns indicating the list of
obligations due; and plantilla positions with their corresponding salaries, and proposals for
reclassification of positions and salary changes, as well as the creation
(vii) Such other financial statements and data as are deemed of new positions with their proposed salary grade, duly supported by
necessary or desirable in order to disclose in all practicable detail proper justification;
the financial condition of the local government unit.
(3) Brief description of the functions, projects and activities for the
SECTION 315. Submission of Detailed Statements of ensuing fiscal year, expected results for each function, project and
Income and Expenditures. – (a) On or before the fifteenth (15th) day activity, and the nature of work to be performed, including the objects
of July of each year, local treasurers shall submit to their respective local of expenditure for each function, project and activity;
chief executives a certified statement covering the income and
expenditures of the preceding fiscal year, the actual income and (4) Relation of the work and financial proposals to approved local
expenditures of the first two (2) quarters of the current year, and the development plans;
estimated income and expenditures for the last two (2) quarters of the (5) Estimated current operating expenditures and capital outlays with
current year. comparative data for the last two (2) preceding, current, and ensuing
SECTION 316. Local Finance Committee. – There is fiscal years; and
hereby created in every province, city or municipality a local finance (6) Accomplishment reports for the last two (2) preceding and current
committee to be composed of the local planning and development officer, fiscal years.
the local budget officer, and the local treasurer. It shall exercise the
following functions: SECTION 318. Preparation of the Budget by the Local
Chief Executive. – Upon receipt of the statements of income and
(a) Determine the income reasonably projected as collectible for the expenditures from the treasurer, the budget proposals of the heads of
ensuing fiscal year; departments and offices, and the estimates of income and budgetary
(b) Recommend the appropriate tax and other revenue measures or ceilings from the local finance committee, the local chief executive shall
borrowings which may be appropriate to support the budget; prepare the executive budget for the ensuing fiscal year in accordance
with the provisions of this Title.
(c) Recommend to the local chief executive concerned the level of the
annual expenditures and the ceilings of spending for economic, social, The local chief executive shall submit the said executive budget to the
and general services based on the approved local development plans; sanggunian concerned not later than the sixteenth (16th) of October of
the current fiscal year. Failure to submit such budget on the date
(d) Recommend to the local chief executive concerned the proper prescribed herein shall subject the local chief executive to such criminal
allocation of expenditures for each development activity between current and administrative penalties as provided for under this Code and other
operating expenditures and capital outlays; applicable laws.
(e) Recommend to the local chief executive concerned the amount to be SECTION 319. Legislative Authorization of the Budget.
allocated for capital outlay under each development activity or – On or before the end of the current fiscal year, the sanggunian
infrastructure project; concerned shall, through an ordinance, the annual budget of the local
government unit for the ensuing fiscal year on the basis of the estimates
(f) Assist the sangguniang panlalawigan in the review and evaluation of
of income and expenditures submitted by the local chief executive.
budget of component cities and municipalities in the case of provincial
finance committee, the barangay budgets in the case of city or municipal SECTION 320. Effectivity of Budgets. – The ordinance
finance committee, and recommend the appropriate action thereon; enacting the annual budget shall take effect at the beginning of the
ensuing calendar year. An ordinance enacting a supplemental budget,
(g) Assist the sanggunian concerned in the analysis and review of annual
however, shall take effect upon its approval or on the date fixed therein.
regular and supplemental budgets of the respective local government
unit to determine compliance with statutory and administrative The responsibility for the execution of the annual and supplemental
requirements; and budgets and the accountability therefor shall be vested primarily in the
local chief executive concerned.
(h) Conduct semi-annual review and general examination of cost and
accomplishments against performance standards applied in undertaking SECTION 321. Changes in the Annual Budget. – All
development projects. budgetary proposals shall be included and considered in the budget
preparation process. After the local chief executive concerned shall have
A copy of this report shall be furnished the local chief executive and the
submitted the executive budget to the sanggunian, no ordinance
sanggunian concerned, and shall be posted in conspicuous and publicly
providing for a supplemental budget shall be enacted, except when
accessible places in the provinces, cities, municipalities and barangays.
supported by funds actually available as certified by the local treasurer
SECTION 317. Submission of Budget Proposals by or by new revenue sources.
Heads of Departments or Offices. – (a) Each head of department or
A supplemental budget may also be enacted in times of public calamity
office shall submit a budget proposal for his department or office to the
by way of budgetary realignment to set aside appropriations for the
local chief executive on or before the fifteenth (15th) of July of each
purchase of supplies and materials or the payment of services which are
year: Provided, That the budget proposal of each department of office
exceptionally urgent or absolutely indispensable to prevent imminent
shall be categorized under either economic, social or general services:
danger to, or loss of, life or property, in the jurisdiction of the local
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government unit or in other areas declared in a state of calamity by the Calamity shall be defined as a state of extreme distress or misfortune,
President. Such ordinance shall clearly indicate the sources of funds produced by some adverse circumstance or event or any great
available for appropriations, as certified under oath by the local treasurer misfortune or cause or loss or misery caused by natural forces.
and local accountant and attested to by the local chief executive, and the
various items of appropriations affected and the reasons for the change. In case of fire or conflagration, the calamity fund shall be utilized only
for relief operations.
SECTION 322. Reversion of Unexpended Balances of
Appropriations, Continuing Appropriations. – Unexpended The local development council shall more monitor the use and
balances of appropriations authorized in the annual appropriations disbursement of the calamity fund.
ordinance shall revert to the unappropriated surplus of the general fund SECTION 325. General Limitations. – The use of the
at the end of the fiscal year and shall not thereafter be available for the provincial, city, and municipal funds shall be subject to the following
expenditure except by subsequent enactment. However, appropriations limitations:
for capital outlays shall continue and remain valid until fully spent,
reverted or the project is completed. Reversions of continuing (a) The total appropriations, whether annual or supplemental, for
appropriations shall not be allowed unless obligations therefor have been personal services of a local government unit for one (1) fiscal year shall
fully paid or otherwise settled. not exceed forty-five percent (45%) in the case of first to third class
provinces, cities and municipalities, and fifty-five percent (55%) in the
The balances of continuing appropriations shall be reviewed as part of case of fourth class or lower, of the total annual income from regular
the annual budget preparation and the sanggunian concerned may sources realized in the next preceding fiscal year. The appropriations for
approve, upon recommendation of the local chief executive, the salaries, wages, representation and transportation allowances of officials
reversion of funds no longer needed in connection with the activities and employees of the public utilities and economic enterprises owned,
funded by said continuing appropriations subject to the provisions of this operated, and maintained by the local government unit concerned shall
section. not be included in the annual budget or in the computation of the
SECTION 323. Failure to Enact the Annual maximum amount for personal services. The appropriations for the
Appropriations. – In case the sanggunian concerned fails to pass the personal services of such economic enterprises shall be charged to their
ordinance authorizing the annual appropriations at the beginning of the respective budgets;
ensuing fiscal year, it shall continue to hold sessions, without additional (b) No official or employee shall be entitled to a salary rate higher than
remuneration for its members, until such ordinance is approved, and no the maximum fixed for his position or other positions of equivalent rank
other business may be taken up during such sessions. If the sanggunian by applicable laws or rules and regulations issued thereunder;
still fails to enact such ordinance after ninety (90) days from the
beginning of the fiscal year, the ordinance authorizing the appropriations (c) No local fund shall be appropriated to increase or adjust salaries or
of the preceding year shall be deemed reenacted and shall remain in wages of officials and employees of the national government, except as
force and effect until the ordinance authorizing the proposed may be expressly authorized by law;
appropriations is passed by the sanggunian concerned. However, only
(d) In cases of abolition of positions and the creation of new ones
the annual appropriations for salaries and wages of existing positions,
resulting from the abolition of existing positions in the career service,
statutory and contractual obligations, and essential operating expenses
such abolition or creation shall be made in accordance with pertinent
authorized in the annual and supplemental budgets for the preceding
provisions of this Code and the civil service law, rules and regulations;
year shall be deemed reenacted and disbursement of funds shall be in
accordance therewith. (e) Positions in the official plantilla for career positions which are
occupied by incumbents holding permanent appointments shall be
In the implementation of such reenacted ordinance, the local treasurer
covered by adequate appropriations;
concerned shall exclude from the estimates of income for the preceding
fiscal year those realized from nonrecurring sources, like national aids, (f) No changes in designation or nomenclature of positions resulting in a
proceeds from loans, sale of assets, prior year adjustments, and other promotion or demotion in rank or increase or decrease in compensation
analogous sources of income. No ordinance authorizing supplemental shall be allowed, except when the position is actually vacant, and the
appropriations shall be passed in place of the annual appropriations. filling of such positions shall be strictly made in accordance with the civil
service law, rules and regulations;
In case the revised income estimates be less than the aggregate
reenacted appropriations, the local treasurer concerned shall accordingly (g) The creation of new positions and salary increases or adjustments
advise the sanggunian concerned which shall, within ten (10) days from shall in no case be made retroactive; and
the receipt of such advice, make the necessary adjustments or
reductions. The revised appropriations authorized by the sanggunian (h) The annual appropriations for discretionary purposes of the local chief
concerned shall then be the basis for disbursements. executive shall not exceed two percent (2%) of the actual receipts
derived from basic real property tax in the next preceding calendar year.
SECTION 324. Budgetary Requirements. – The budgets Discretionary funds shall be disbursed only for public purposes to be
of local government units for any fiscal year shall comply with the supported by appropriate vouchers and subject to such guidelines as may
following requirements: be prescribed by law. No amount shall be appropriated for the same
purpose except as authorized under this section.
(a) The aggregate amount appropriated shall not exceed the estimates
of income; SECTION 326. Review of Appropriation Ordinances of
Provinces, Highly-Urbanized Cities, Independent Component
(b) Full provision shall be made for all statutory and contractual
Cities, and Municipalities within the Metropolitan Manila Area. –
obligations of the local government unit concerned: Provided, however,
The Department of Budget and Management shall review ordinances
That the amount of appropriations for debt servicing shall not exceed
authorizing the annual or supplemental appropriations of provinces,
twenty percent (20%) of the regular income of the local government unit
highly-urbanized cities, independent component cities, and municipalities
concerned;
within the Metropolitan Manila Area in accordance with the immediately
(c) In the case of provinces, cities, and municipalities, aid to component succeeding section.
barangays shall be provided in amounts of not less than One thousand
SECTION 327. Review of Appropriation Ordinances of
pesos (P1,000.00) per barangay; and
Component Cities and Municipalities. – The sangguniang
(d) Five percent (5%) of the estimated revenue from regular sources panlalawigan shall review the ordinance authorizing annual or
shall be set aside as annual lump sum appropriations for relief, supplemental appropriations of component cities and municipalities in
rehabilitation, reconstruction and other works or services in connection the same manner and within the same period prescribed for the review
with calamities which may occur during the budget year. Provided, of other ordinances.
however, That such fund shall be used only in the area, or a portion
If within ninety (90) days from receipt of copies of such ordinance, the
thereof, of the local government unit or other areas affected by a disaster
sangguniang panlalawigan takes no action thereon, the same shall be
or calamity, as determined and declared by the local sanggunian
deemed to have been reviewed in accordance with law and shall continue
concerned.
to be in full force and effect. If within the same period, the sangguniang
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panlalawigan shall have ascertained that the ordinance authorizing shall be declared inoperative in its entirety or in part. Items of
annual or supplemental appropriations has not complied with the appropriation contrary to, or in excess of, any of the general limitations
requirements set forth in this Title, the sangguniang panlalawigan shall, or the maximum amount prescribed in this Title shall be disallowed or
within the ninety-day period hereinabove prescribed, declare such reduced accordingly.
ordinance inoperative in its entirety or in part. Items of appropriation
contrary to limitations prescribed in this Title or in excess of the amounts (b) Within the period hereinabove fixed, the sangguniang panlungsod or
prescribed herein shall be disallowed or reduced accordingly. sangguniang bayan concerned shall return the barangay ordinance,
through the city or municipal budget officer, to the punong barangay
The sangguniang panlalawigan shall, within the same period, advise the with the advice of action thereon for proper adjustments, in which event,
sangguniang panlungsod or sangguniang bayan concerned, through the the barangay shall operate on the ordinance authorizing annual
local chief executive, of any action on the ordinance under review. Upon appropriations of the preceding fiscal year until such time that the new
receipt of such advice, the city or municipal treasurer concerned shall not ordinance authorizing annual appropriations shall have met the
make further disbursements of funds from any of the items of objections raised. Upon receipt of such advice, the barangay treasurer or
appropriation declared inoperative, disallowed or reduced. the city or municipal treasurer who has custody of the funds shall not
make further disbursement from any item of appropriation declared
SECTION 328. Duration of Appropriation. – inoperative, disallowed, or reduced.
Appropriations for ordinary administrative purposes not duly obligated
shall terminate with the fiscal year and all unexpended balances thereof SECTION 334. Barangay Financial Procedures. – (a) The
shall be automatically reverted on the thirty-first (31st) day of December barangay treasurer shall collect all taxes, fees, and other charges due
of each year to the general fund of the local government unit. and contributions accruing to the barangay for which he shall issue
official receipts, and shall deposit all collections with the city or municipal
treasury or in the depository account maintained in the name of the
ARTICLE II barangay within five (5) days after receipt thereof. He may collect real
Barangay Budgets property taxes and such other taxes as may be imposed by a province,
SECTION 329. Barangay Funds. – Unless otherwise city or municipality that are due in his barangay only after being
provided in this Title, all the income of the barangay from whatever deputized by the local treasurer concerned for the purpose.
source shall accrue to its general fund and shall, at the option of the (b) The barangay treasurer may be authorized by the sangguniang
barangay concerned, be kept as trust fund in the custody of the city or barangay to make direct purchases amounting to not more than One
municipal treasurer or be deposited in a bank, preferably government- thousand pesos (P1,000.00) at any time for the ordinary and essential
owned, situated in or nearest to its area of jurisdiction. Such funds shall needs of the barangay. The petty cash that the barangay treasurer may
be disbursed in accordance with the provisions of this Title. Ten percent be authorized to hold for the purpose shall not exceed twenty percent
(10%) of the general fund of the barangay shall be set aside for the (20%) of the funds available and to the credit of the barangay treasury.
sangguniang kabataan.
(c) The financial records of the barangay shall be kept in the office of the
SECTION 330. Submission of Detailed Statements of city or municipal accountant in simplified manner as prescribed by the
Income and Expenditures for the Barangay Budgets. – On or Commission on Audit (COA). Representatives of the COA shall audit such
before the fifteenth (15th) day of September of each year, the barangay accounts annually or as often as may be necessary and make a report of
treasurer shall submit to the punong barangay a statement covering the the audit to the sangguniang panlungsod or sangguniang bayan, as the
estimates of income and expenditures for the ensuing fiscal year, based case may be. The COA shall prescribe and put into effect simplified
on a certified statement issued by the city or municipal treasurer covering procedures for barangay finances within six (6) months following the
the estimates of income from local sources for the barangay concerned. effectivity of this Code.
SECTION 331. Preparation of the Barangay Budget. –
(a) Upon receipt of the statement of income and expenditures from the CHAPTER IV
barangay treasurer, the punong barangay shall prepare the barangay
Expenditures, Disbursements, Accounting and Accountability
budget for the ensuing fiscal year in the manner and within the period
prescribed in this Title and submit the annual barangay budget to the SECTION 335. Prohibitions Against Expenditures for
sangguniang barangay for legislative enactment. Religious or Private Purposes. – No public money or property shall
be appropriated or applied for religious or private purposes.
(b) The total annual appropriations for personal services of a barangay
for one (1) fiscal year shall not exceed fifty-five percent (55%) of the SECTION 336. Use of Appropriated Funds and Savings.
total annual income actually realized from local sources during the next – Funds shall be available exclusively for the specific purpose for which
preceding fiscal year. they have been appropriated. No ordinance shall be passed authorizing
any transfer of appropriations from one item to another. However, the
(c) The barangay budget shall likewise be subject to the same budgetary
local chief executive or the presiding officer of the sanggunian concerned
requirements and limitations hereinabove prescribed.
may, by ordinance, be authorized to augment any item in the approved
SECTION 332. Effectivity of Barangay Budgets. – The annual budget for their respective offices from savings in other items
ordinance enacting the annual budget shall take effect at the beginning within the same expense class of their respective appropriations.
of the ensuing calendar year. An ordinance enacting a supplemental
SECTION 337. Restriction Upon Limit of
budget, however, shall take effect upon its approval or on the date fixed
Disbursements. – Disbursements in accordance with appropriations in
therein.
the approved annual budget may be made from any local fund in the
The responsibility for the execution of the annual and supplemental custody of the treasurer, but the total disbursements from any local fund
budgets and the accountability therefor shall be vested primarily in the shall in no case exceed fifty percent (50%) of the uncollected estimated
punong barangay concerned. revenue accruing to such local fund in addition to the actual collections:
Provided, however, That no cash overdraft in any local fund shall be
SECTION 333. Review of the Barangay Budget. – (a) incurred at the end of the fiscal year.
Within ten (10) days from its approval, copies of the barangay ordinance
authorizing the annual appropriations shall be furnished the sangguniang In case of emergency arising from a typhoon, earthquake, or any other
panlungsod or the sangguniang bayan, as the case may be, through the calamity, the sanggunian concerned may authorize the local treasurer to
city or municipal budget officer. The sanggunian concerned shall have continue making disbursements from any local fund in his possession in
the power to review such ordinance in order to ensure that the provisions excess of the limitations herein provided, but only for such purposes and
of this Title are complied with. If within sixty (60) days after the receipt amounts included in the approved annual budgets.
of the ordinance, the sanggunian concerned takes no action thereon, the
Any overdraft which may be incurred at the end of the year in any local
same shall continue to be in full force and effect. If within the same
fund by virtue of the provisions hereof shall be covered with the first
period, the sanggunian concerned shall have ascertained that the
collections of the immediately succeeding fiscal year accruing to such
ordinance contains appropriations in excess of the estimates of the
local fund.
income duly certified as collectible, or that the same has not complied
with the budgetary requirements set forth in this Title, the said ordinance
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 SECTION 338. Prohibitions Against Advance Payments. without the prior approval of the sanggunian concerned. Within thirty
– No money shall be paid on account of any contract under which no (30) days after the close of each month, the local accountant shall furnish
services have been rendered or goods delivered. the sanggunian with such financial statements as may be prescribed by
the COA. In the case of the year-end statement of accounts, the period
SECTION 339. Cash Advances. – No cash advance shall be shall be sixty (60) days after the thirty-first (31st) of December.
granted to any local official or employee, elective or appointive, unless
made in accordance with the rules and regulations as the COA may SECTION 347. Rendition of Accounts. – Local treasurers,
prescribe. accountants and other local accountable officers shall render their
accounts within such time, in such form, style, and content and under
SECTION 340. Persons Accountable for Local such regulations as the COA may prescribe.
Government Funds. – Any officer of the local government unit whose
duty permits or requires the possession or custody of local government Provincial, city, and municipal auditors shall certify the balances arising
funds shall be accountable and responsible for the safekeeping thereof in the accounts settled by them to the Chairman of the COA and to the
in conformity with the provisions of this Title. Other local officers who, local treasurer, accountant, and other accountable officers. Copies of the
though not accountable by the nature of their duties, may likewise be certification shall be prepared and furnished other local officers who may
similarly held accountable and responsible for local government funds be held jointly and severally liable for any loss or illegal, improper or
through their participation in the use or application thereof. unauthorized use or misappropriation of local funds or property.
SECTION 341. Prohibitions Against Pecuniary Interest. SECTION 348. Auditorial Visitation. – The books,
– Without prejudice to criminal prosecution under applicable laws, any accounts, papers, and cash of local treasurer, accountant, budget officer,
local treasurer, accountant, budget officer, or other accountable local or other accountable officers shall at all times be open for inspection of
officer having any pecuniary interest, direct or indirect, in any contract, the COA or its duly authorized representative.
work or other business of the local government unit of which he is an
accountable officer shall be administratively liable therefor. In case an examination of the accounts of a local treasurer discloses a
shortage in cash which should be on hand, it shall be the duty of the
SECTION 342. Liability for Acts Done Upon Direction of examining officer to seize the office and its contents and notify the COA,
Superior Officer, or Upon Participation of Other Department the local chief executive concerned, and the local accountant.
Heads or Officers of Equivalent Rank. – Unless he registers his Thereupon, the examining officer shall immediately turn over to the
objection in writing, the local treasurer, accountant, budget officer, or accountable officer next-in-rank in the local treasury service, unless the
other accountable officer shall not be relieved of liability for illegal or said officer is likewise under investigation, the office of the treasurer and
improper use or application or deposit of government funds or property its contents, and close and render his accounts on the date of turnover.
by reason of his having acted upon the direction of a superior officer, In case the accountable officer next in rank is under investigation, the
elective or appointive, or upon participation of other department heads auditor shall take full possession of the office and its contents, close and
or officers of equivalent rank. The superior officer directing, or the render his accounts on the date of taking possession, and temporarily
department head participating in such illegal or improper use or continue the public business of such office until such time that the local
application or deposit of government funds or property, shall be jointly treasurer is restored or a successor has been duly designated. The local
and severally liable with the local treasurer, accountant, budget officer, treasurer or accountable officer found with such shortage shall be
or other accountable officer for the sum or property so illegally or automatically suspended from office.
improperly used, applied or deposited.
SECTION 349. Accounting for Revenues. – Estimated
SECTION 343. Prohibition Against Expenses for revenues which remain unrealized at the close of the fiscal year shall not
Reception and Entertainment. – No money shall be appropriated, be booked or credited to the unappropriated surplus or any other
used, or paid for entertainment or reception except to the extent of the account.
representation allowances authorized by law or for the reception of
visiting dignitaries of foreign governments or foreign missions, or when SECTION 350. Accounting for Obligations. – All lawful
expressly authorized by the President in specific cases. expenditures and obligations incurred during a fiscal year shall be taken
up in the accounts of that year.
SECTION 344. Certification on, and Approval of,
Vouchers. – No money shall be disbursed unless the local budget officer SECTION 351. General Liability for Unlawful
certifies to the existence of appropriation that has been legally made for Expenditures. – Expenditures of funds or use of property in violation
the purpose, the local accountant has obligated said appropriation, and of this Title and other laws shall be a personal liability of the official or
the local treasurer certifies to the availability of funds for the purpose. employee responsible therefor.
Vouchers and payrolls shall be certified to and approved by the head of SECTION 352. Posting of the Summary of Income and
the department or office who has administrative control of the fund Expenditures. – Local treasurers, accountants, budget officers, and
concerned, as to validity, propriety, and legality of the claim involved. other accountable officers shall, within thirty (30) days from the end of
Except in cases of disbursements involving regularly recurring each fiscal year, post in at least three (3) publicly accessible and
administrative expenses such as payrolls for regular or permanent conspicuous places in the local government unit a summary of all
employees, expenses for light, water, telephone and telegraph services, revenues collected and funds received including the appropriations and
remittances to government creditor agencies such as GSIS, SSS, LBP, disbursements of such funds during the preceding fiscal year.
DBP, National Printing Office, Procurement Service of the DBM and
others, approval of the disbursement voucher by the local chief executive SECTION 353. The Official Fiscal Year. – The official fiscal
himself shall be required whenever local funds are disbursed. year of local government units shall be the period beginning with the first
(1st) day of January and ending with the thirty-first (31st) day of
In cases of special or trust funds, disbursements shall be approved by December of the same year.
the administrator of the fund.
SECTION 354. Administrative Issuances; Budget
In case of temporary absence or incapacity of the department head or Operations Manual. – The Secretary of Budget and Management
chief of office, the officer next-in-rank shall automatically perform his jointly with the Chairman of the COA shall, within one (1) year from the
function and he shall be fully responsible therefor. effectivity of this Code, promulgate a Budget Operations Manual for local
SECTION 345. Officials Authorized to Draw Checks in government units to improve and systematize methods, techniques, and
Settlement of Obligations. – Checks in settlement of obligations shall procedures employed in budget preparation, authorization, execution,
be drawn by the local treasurer and countersigned by the local and accountability.
administrator. TITLE VI
Property and Supply Management in the Local Government
In case of temporary absence or incapacity of the foregoing officials, Units
these duties shall devolve upon their immediate assistants.
SECTION 355. Scope. – This Title shall govern the
SECTION 346. Disbursements of Local Funds and procurement, care, utilization, custody, and disposal of supplies, as
Statement of Accounts. – Disbursements shall be made in accordance defined herein, by local government units and the other aspects of supply
with the ordinance authorizing the annual or supplemental appropriations management at the local levels.
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 SECTION 356. General Rule in Procurement or accessible and conspicuous places in the provincial capitol or city,
Disposal. – Except as otherwise provided herein, acquisition of supplies municipal, or barangay hall, as the case may be.
by local government units shall be through competitive public bidding.
Supplies which have become unserviceable or no longer needed shall be The notice of the bidding may likewise be published in a newspaper of
sold, whenever applicable, at public auction, subject to applicable rules general circulation in the territorial jurisdiction of the local government
and regulations. unit concerned when the provincial or city general services officer or the
municipal or barangay treasurer, as the case may be, deems it necessary
SECTION 357. Definition of Terms. – When used in this in order to obtain the lowest responsible and complying bid.
Title, the term:
The opening of bids shall only be made in the presence of the provincial
(a) “Lowest Complying and Responsible Bid” refers to the proposal of or city auditor or his duly authorized representative who shall initial and
one who offers the lowest price, meets all the technical specifications secure copies of the bids and certify the abstract of the bidding.
and requirements of the supplies desired and, as a dealer in the line of
supplies involved, maintains a regular establishment, and has complied SECTION 364. The Committee on Awards. – There shall
consistently with previous commitments; be in every province, city or municipality a Committee on Awards to
decide the winning bids and questions of awards on procurement and
(b) “Suitable Substitute” refers to that kind of article which would serve disposal of property.
substantially the same purpose or produce substantially the same results
as the brand, type, or make of article originally desired or requisitioned; The Committee on Awards shall be composed of the local chief executive
as chairman, the local treasurer, the local accountant, the local budget
(c) “Supplies” includes everything, except real property, which may be officer, the local general services officer, and the head of office or
needed in the transaction of public business or in the pursuit of any department for whose use the supplies are being procured, as members.
undertaking, project, or activity, whether in the nature of equipment, In case a head of office or department would sit in a dual capacity, a
furniture, stationary materials for construction or personal property of member of the sanggunian elected from among its members shall sit as
any sort, including non-personal or contractual services such as the a member. The Committee on Awards at the barangay level shall be the
repair and maintenance of equipment and furniture, as well as trucking, sangguniang barangay. No national official shall sit as a member of the
hauling, janitorial, security, and related services; and Committee on Awards.
(d) “Terms and Conditions” refer to other requirements not affecting the The results of the bidding shall be made public by conspicuously posting
technical specifications and requirements of the required supplies desired the same in the provincial capitol or city, municipal, or barangay hall.
such as bonding, terms of delivery and payment, and related
preferences. SECTION 365. Rule on Awards. – Awards in the
procurement of supplies shall be given to the lowest complying and
SECTION 358. Requirement of Requisition. – Any order responsible bid which meets all the terms and conditions of the contract
for supplies shall be filled by the provincial or city general services officer or undertaking.
or the municipal or barangay treasurer concerned, as the case may be,
for any office or department of a local government unit only upon written SECTION 366. Procurement Without Public Bidding. –
requisition as hereinafter provided. Procurement of supplies may be made without the benefit of public
bidding under any of the following modes:
SECTION 359. Officers Having Authority to Draw
Requisitions. – Requisitions shall be prepared by the head of office or (a) Personal canvass of responsible merchants;
department needing the supplies, who shall certify as to their necessity (b) Emergency purchase;
for official use and specify the project or activity where the supplies are
to be used. (c) Negotiated purchase;

SECTION 360. Certification by the Local Budget Officer, (d) Direct purchase from manufacturers or exclusive distributors; and
Accountant, and Treasurer. – Every requisition must be accompanied
(e) Purchase from other government entities.
by a certificate signed by the local budget officer, the local accountant,
and the local treasurer showing that an appropriation therefor exists, the SECTION 367. Procurement through Personal
estimated amount of such expenditure has been obligated, and the funds Canvass. – Upon approval by the Committee on Awards, procurement
are available for the purpose, respectively. of supplies may be effected after personal canvass of at least three (3)
responsible suppliers in the locality by a committee of three (3)
SECTION 361. Approval of Requisitions. – Approval of the
composed of the local general services officer or the municipal or
requisition by the head of office or department concerned who has
barangay treasurer, as the case may be, the local accountant, and the
administrative control of the appropriation against which the proposed
head of office or department for whose use the supplies are being
expenditure is chargeable is deemed sufficient, except in case of
procured. The award shall be decided by the Committee on Awards.
requisition for supplies to be carried in stock which shall be approved by
the local chief executive concerned: Provided, That such supplies are Purchases under this section shall not exceed the amounts specified
listed or included in the annual procurement plan and the maximum hereunder for all items in any one (1) month for each local government
quantity thereof does not exceed the estimated consumption unit:
corresponding to a programmed three-month period: Provided, further,
That nothing herein contained shall be held as authorizing the purchase Provinces and Cities and Municipalities within the Metropolitan Manila
of furniture and equipment for stock purposes. Area:

SECTION 362. Call for Bids. – When procurement is to be First and Second Class – One hundred fifty thousand pesos
made by local government units, the provincial or city general services (P150,000.00)
officer or the municipal or barangay treasurer shall call bids for open
public competition. The call for bids shall show the complete Third and Fourth Class – One hundred thousand pesos
specifications and technical descriptions of the required supplies and (P100,000.00)
shall embody all terms and conditions of participation and award, terms
Fifth and Sixth Class – Fifty thousand pesos (P50,000.00)
of delivery and payment, and all other covenants affecting the
transaction. In all calls for bids, the right to waive any defect in the tender Municipalities:
as well as the right to accept the bid most advantageous to the
government shall be reserved. In no case, however, shall failure to meet First Class – Sixty thousand pesos
the specifications or technical requirements of the supplies desired be (P60,000.00)
waived.
Second and Third Class – Forty thousand pesos
SECTION 363. Publication of Call for Bids. – The call for (P40,000.00)
bids shall be given the widest publicity possible, sending, by mail or
otherwise, any known prospective participant in the locality, of copies of Fourth Class and Below – Twenty thousand pesos
the call and by posting copies of the same in at least three (3) publicly (P20,000.00)
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 SECTION 368. Emergency Purchase. – In cases of Provided, further, That the same terms and conditions of sale are
emergency where the need for the supplies is exceptionally urgent or obtained for the said repeat order.
absolutely indispensable and only to prevent imminent danger to, or loss
of, life or property, local government units may, through the local chief SECTION 370. Procurement from Duly Licensed
executive concerned, make emergency purchases or place repair orders, Manufacturer. – Procurement may be made directly from duly licensed
regardless of amount, without public bidding. Delivery of purchase orders manufacturers in cases of supplies of Philippine manufacture or origin
or utilization of repair orders pursuant to this section shall be made within and in case there are two (2) or more manufacturers of the required
ten (10) days after placement of the same. Immediately after the supplies, canvass of the known manufacturers shall be conducted to
emergency purchase or repair order is made, the chief of office or obtain the lowest price for the quality of the said supplies.
department making the emergency purchase or repair order shall draw SECTION 371. Procurement from Exclusive Philippine
a regular requisition to cover the same which shall contain the following: Agents or Distributors. – Procurement may, in the case of supplies of
(a) A complete description of the supplies acquired or the work done or foreign origin, preferably be made directly from the exclusive or
to be performed; reputable Philippine distributors or agents, subject to the following
conditions:
(b) By whom furnished or executed;
(a) That the Philippine distributor has no subdealers selling at lower
(c) Date of placing the order and the date and time of delivery or prices; and
execution;
(b) That no suitable substitutes of substantially the same quality are
(d) The unit price and the total contract price; available at lower prices.
(e) A brief and concise explanation of the circumstances why SECTION 372. Procurement from Government
procurement was of such urgency that the same could not be done Entities. – Procurement may be made directly from the government
through the regular course without involving danger to, or loss of, life or entities producing the required supplies, including units or agencies of
property; foreign governments with which the Philippines maintains diplomatic
relations. In the latter case, prior authority from the Office of the
(f) A certification of the provincial or city general services or the municipal President shall be required.
or barangay treasurer, as the case may be, to the effect that the price
paid or contracted for was the lowest at the time of procurement; and SECTION 373. Annual Procurement Program. – (a) On
or before the fifteenth (15th) day of July each year, the local chief
(g) A certification of the local budget officer as to the existence of executive shall prepare an annual procurement program for the ensuing
appropriations for the purpose, the local accountant as to the obligation fiscal year which shall contain an itemized list of the estimated quantity
of the amount involved, and the local treasurer as to the availability of of supplies needed for such year, a complete description thereof as to
funds. kind, quality, estimated cost, and balance on hand: Provided, however,
The goods or services procured under this section must be utilized or That the total estimated cost of the approved annual procurement
availed of within fifteen (15) days from the date of delivery or availability. program shall not exceed the total appropriations authorized for the
acquisition of supplies. The local government units may augment the
Without prejudice to criminal prosecution under applicable laws, the local supplies and equipment provided by the Supreme Court to the lower
chief executive, the head of department, or the chief of office making courts located in their respective jurisdictions.
the procurement shall be administratively liable for any violation of this
section and shall be a ground for suspension or dismissal from service. (b) Except in emergency cases or where urgent indispensable needs
could not have been reasonably anticipated, no purchase of supplies shall
SECTION 369. Negotiated Purchase. – (a) In cases where be made unless included in, or covered by, the approved procurement
public biddings have failed for two (2) consecutive times and no suppliers program.
have qualified to participate or win in the biddings, local government
units may, through the local chief executive concerned, undertake the (c) The conversion of excess cash into supplies stock is hereby prohibited
procurement of supplies by negotiated purchase, regardless of amount, except to the extent of the kind and quantity specified in the approved
without public bidding: Provided, however, That the contract covering annual procurement plan.
the negotiated purchase shall be approved by the sanggunian concerned. A violation of this section shall be a ground for suspension or dismissal
Delivery of purchase orders or utilization of repair orders pursuant to this of any official or employee responsible therefor.
section shall be made within seven (7) days after placement of the same.
Immediately after the negotiated purchase or repair order is made, the SECTION 374. Establishment of an Archival System. –
local chief executive concerned shall draw a regular requisition to cover Every local government unit shall provide for the establishment of an
the same which shall contain the following: archival system to ensure the safety and protection of all government
property, public documents or records such as records of births,
(1) A complete description of the supplies acquired or the work done marriages, property inventory, land assessments, land ownership, tax
or to be performed; payments, tax accounts, and business permits, and such other records
(2) By whom furnished or executed; or documents of public interest in the various departments and offices of
the provincial, city, or municipal government concerned.
(3) Date of placing the order and the date and time of delivery or
execution; SECTION 375. Primary and Secondary Accountability
for Government Property. – (a) Each head of department or office of
(4) The unit price and the total contract price; a province, city, municipality or barangay shall be primarily accountable
for all government property assigned or issued to his department or
(5) A certification of the provincial or city general services of the
office. The person or persons entrusted with the possession or custody
municipal or barangay treasurer, as the case may be, to the effect
of government property under the accountability of any head of
that the price paid or contracted for was the lowest at the time of
department or office shall be immediately accountable to such officer.
procurement;
(b) The head of a department or office primarily accountable for
(6) A certification to the effect that the price paid or contracted for
government property may require any person in possession of the
was the lowest at the time of procurement; and
property or having custody and control thereof under him to keep such
(7) A certification of the local budget officer as to the existence of records and make reports as may be necessary for his own information
appropriations for the purpose, the local accountant as to the and protection.
obligation of the amount involved, and the local treasurer as to the
(c) Buildings and other physical structures shall be under the
availability of funds.
accountability and responsibility of the provincial or city general services
(b) In case of repeat orders for regular supplies, procurement may be officer or the municipal mayor or punong barangay, as the case may be.
made by negotiated purchase: Provided, That the repeat order is made
(d) Every officer primarily accountable for government property shall
within three (3) months from the last procurement of the same item:
keep a complete record of all properties under his charge and render his
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accounts therefor semiannually to the provincial or city general services SECTION 381. Transfer Without Cost. – Property which
officer or the municipal mayor or punong barangay, as the case may be. has become unserviceable or is no longer needed may be transferred
without cost to another office, agency, subdivision or instrumentality of
SECTION 376. Responsibility for Proper Use and Care the national government or another local government unit at an
of Government Property. – The person in actual physical possession appraised valuation determined by the local Committee on Awards. Such
of government property or entrusted with its custody and control shall transfer shall be subject to the approval of the sanggunian concerned
be responsible for its proper use and care and shall exercise due diligence making the transfer and by the head of the office, agency, subdivision,
in the utilization and safekeeping thereof. instrumentality or local government unit receiving the property.
SECTION 377. Measure of Liability of Persons SECTION 382. Tax Exemption Privileges of Local
Accountable for Government Property. – (a) The person Government Units. – Local government units shall be exempt from the
immediately accountable for government property shall be liable for its payment of duties and taxes for the importation of heavy equipment or
money value in case of the illegal, improper or unauthorized use or machineries which shall be used for the construction, improvement,
misapplication thereof, by himself or any other person for whose acts he repair, and maintenance of roads, bridges and other infrastructure
may be responsible, and he shall be liable for all loss, damage, or projects, as well as garbage trucks, fire trucks, and other similar
deterioration occasioned by negligence in the keeping or use of such equipment: Provided, however, That such equipment or machineries
property unless it is proved that he has exercised due diligence and care shall not be disposed of, either by public auction or negotiated sale as
in the utilization and safekeeping thereof. hereinabove provided, within five (5) years from the importation thereof.
(b) Unless he registers his objection in writing, an accountable person In case the machinery or equipment is sold within the five-year period,
shall not be relieved from liability by reason of his having acted under the purchasers or recipients shall be considered the importers thereof,
the direction of a superior officer in using property with which he is and shall be liable for duties and taxes computed on the book value of
chargeable; but the officer directing any illegal, unauthorized or improper such importation.
use of property shall first be required to answer therefor. SECTION 383. Implementing Rules and Regulations. –
(c) In cases of loss, damage, or deterioration of government property The Chairman of the Commission on Audit shall promulgate the rules and
arising from, or attributable to, negligence in security, the head of the regulations necessary to effectively implement the provisions of this Title,
security agency shall be held liable therefor. including requirements as to testing, inspection, and standardization of
supply and property.
SECTION 378. Credit for Loss Occurring in Transit or
Due to Casualty. – When a loss of government property occurs while
the same is in transit or is caused by fire, theft, force majeure, or other BOOK III
casualty, the officer accountable therefor or having custody thereof shall LOCAL GOVERNMENT UNITS
immediately notify the provincial or city auditor concerned within thirty
TITLE I
(30) days from the date the loss occurred or for such longer period as
the provincial, city or municipal auditor, as the case may be, may in the THE BARANGAY
particular case allow, and he shall present his application for relief, with CHAPTER I
the available evidence in support thereof. An officer who fails to comply ROLE AND CREATION OF THE BARANGAY
with this requirement shall not be relieved of liability or allowed credit for
any such loss in the settlement of his accounts. 384. Role of the Barangay. – As the basic political unit, the
barangay serves as the primary planning and implementing unit of
A provincial, city or municipal auditor shall not allow credit for these government policies, plans, programs, projects, and activities in the
losses unless so expressly authorized by the Chairman of the Commission community, and as a forum wherein the collective views of the people
on Audit, to be exercised only if the loss is not in excess of Fifty thousand may be expressed, crystallized and considered, and where disputes may
pesos (P50,000.00). In any case when the allowance of credit is not be amicably settled.
within the competence of the provincial, city or municipal auditor, the
application and evidence, with the recommendation of the auditor SECTION 385. Manner of Creation. – A barangay may be
concerned, shall be forwarded to the Chairman of the Commission on created, divided, merged, abolished, or its boundary substantially
Audit for his appropriate action. altered, by law or by an ordinance of the sangguniang panlalawigan or
sangguniang panlungsod, subject to approval by a majority of the votes
SECTION 379. Property Disposal. – When property of any cast in a plebiscite to be conducted by the COMELEC in the local
local government unit has become unserviceable for any cause or is no government unit or units directly affected within such period of time as
longer needed, it shall, upon application of the officer accountable may be determined by the law or ordinance creating said barangay. In
therefor, be inspected and appraised by the provincial, city or municipal the case of the creation of barangays by the sangguniang panlalawigan,
auditor, as the case may be, or his duly authorized representative or that the recommendation of the sangguniang bayan concerned shall be
of the Commission on Audit and, if found valueless or unusable, shall be necessary.
destroyed in the presence of the inspecting officer.
SECTION 386. Requisites for Creation. – (a) A barangay
If found valuable, the same shall be sold at public auction to the highest may be created out of a contiguous territory which has a population of
bidder under the supervision of the Committee on Awards and in the at least two thousand (2,000) inhabitants as certified by the National
presence of the provincial, city or municipal auditor or his duly authorized Statistics Office except in cities and municipalities within Metro Manila
representative. Notice of the public auction shall be posted in at least and other metropolitan political subdivisions or in highly urbanized cities
three (3) publicly accessible and conspicuous places, and if the where such territory shall have a certified population of at least five
acquisition cost exceeds One hundred thousand pesos (P100,000.00) in thousand (5,000) inhabitants: Provided, That the creation thereof shall
the case of provinces and cities, and Fifty thousand pesos (P50,000.00) not reduce the population of the original barangay or barangays to less
in the case of municipalities, notice of auction shall be published at least than the minimum requirement prescribed herein.
two (2) times within a reasonable period in a newspaper of general
circulation in the locality. To enhance the delivery of basic services in the indigenous cultural
communities, barangays may be created in such communities by an act
SECTION 380. Negotiated Sale of Property. – Property of Congress, notwithstanding the above requirement.
no longer needed may also be disposed of at a private sale at such price
as may be determined by the Committee on Awards, subject to the (b) The territorial jurisdiction of the new barangay shall be properly
approval of the Commission on Audit or its duly authorized representative identified by metes and bounds or by more or less permanent natural
when the acquisition or transfer cost of the property exceeds Fifty boundaries. The territory need not be contiguous if it comprises two (2)
thousand pesos (P50,000.00) in the case of provinces and cities, and or more islands.
Twenty-five thousand pesos (P25,000.00) in the case of municipalities (c) The governor or city mayor may prepare a consolidation plan for
and barangays. barangays, based on the criteria prescribed in this section, within his
In case of real property, the disposal shall be subject to the approval of territorial jurisdiction. The plan shall be submitted to the sangguniang
the Commission on Audit regardless of the value or cost involved. panlalawigan or sangguniang panlungsod concerned for appropriate
action.
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In the case of municipalities within the Metropolitan Manila Area and games, in coordination with the Department of Education, Culture and
other metropolitan political subdivisions, the barangay consolidation plan Sports;
shall be prepared and approved by the sangguniang bayan concerned.
(14) Promote the general welfare of the barangay; and
(15) Exercise such other powers and perform such other duties and
CHAPTER II
functions as may be prescribed by law or ordinance.
BARANGAY OFFICIALS AND OFFICES
(b) In the performance of his peace and order functions, the punong
SECTION 387. Chief Officials and Offices. – (a) There barangay shall be entitled to possess and carry the necessary firearm
shall be in each barangay a punong barangay, seven (7) sangguniang within his territorial jurisdiction, subject to appropriate rules and
barangay members, the sangguniang kabataan chairman, a barangay
regulations.
secretary, and a barangay treasurer.
CHAPTER IV
(b) There shall also be in every barangay a lupong tagapamayapa. The THE SANGGUNIANG BARANGAY
sangguniang barangay may form community brigades and create such
SECTION 390. Composition. – The sangguniang barangay,
other positions or offices as may be deemed necessary to carry out the
the legislative body of the barangay, shall be composed of the punong
purposes of the barangay government in accordance with the needs of
barangay as presiding officer, and the seven (7) regular sangguniang
public service, subject to the budgetary limitations on personal services
barangay members elected at large and sangguniang kabataan
prescribed under Title Five, Book II of this Code.
chairman, as members.
SECTION 388. Persons in Authority. – For purposes of
SECTION 391. Powers, Duties, and Functions. – (a) The
the Revised Penal Code, the punong barangay, sangguniang barangay
sangguniang barangay, as the legislative body of the barangay, shall:
members, and members of the lupong tagapamayapa in each barangay
shall be deemed as persons in authority in their jurisdictions, while other (1) Enact ordinances as may be necessary to discharge the
barangay officials and members who may be designated by law or responsibilities conferred upon it by law or ordinance and to promote
ordinance and charged with the maintenance of public order, protection the general welfare of the inhabitants therein;
and security of life and property, or the maintenance of a desirable and
balanced environment, and any barangay member who comes to the aid (2) Enact tax and revenue ordinances, subject to the limitations
of persons in authority, shall be deemed agents of persons in authority. imposed in this Code;
(3) Enact annual and supplemental budgets in accordance with the
CHAPTER III provisions of this Code;
The Punong Barangay (4) Provide for the construction and maintenance of barangay
facilities and other public works projects chargeable to the general
SECTION 389. Chief Executive: Powers, Duties, and
fund of the barangay or such other funds actually available for the
Functions. – (a) The punong barangay, as the chief executive of the
purpose;
barangay government, shall exercise such powers and perform such
duties and functions, as provided by this Code and other laws. (5) Submit to the sangguniang panlungsod or sangguniang bayan
such suggestions or recommendations as it may see fit for the
(b) For efficient, effective and economical governance, the purpose of
improvement of the barangay or for the welfare of the inhabitants
which is the general welfare of the barangay and its inhabitants pursuant
thereof;
to Section 16 of this Code, the punong barangay shall:
(6) Assist in the establishment, organization, and promotion of
(1) Enforce all laws and ordinances which are applicable within the
cooperative enterprises that will improve the economic condition and
barangay;
well-being of the residents;
(2) Negotiate, enter into, and sign contracts for and in behalf of the
(7) Regulate the use of multi-purpose halls, multi-purpose
barangay, upon authorization of the sangguniang barangay;
pavements, grain or copra dryers, patios and other post-harvest
(3) Maintain public order in the barangay and, in pursuance thereof, facilities, barangay waterworks, barangay markets, parking areas or
assist the city or municipal mayor and the sanggunian members in other similar facilities constructed with government funds within the
the performance of their duties and functions; jurisdiction of the barangay and charge reasonable fees for the use
thereof;
(4) Call and preside over the sessions of the sangguniang barangay
and the barangay assembly, and vote only to break a tie; (8) Solicit or accept monies, materials and voluntary labor for specific
public works and cooperative enterprises of the barangay from
(5) Upon approval by a majority of all the members of the residents, land owners, producers and merchants in the barangay;
sangguniang barangay, appoint or replace the barangay treasurer, monies from grants-in-aid, subsidies, contributions, and revenues
the barangay secretary, and other appointive barangay officials; made available to the barangays from national, provincial, city or
(6) Organize and lead an emergency group whenever the same may municipal funds; and monies from other private agencies and
be necessary for the maintenance of peace and order or on occasions individuals: Provided, however, That monies or properties donated by
of emergency or calamity within the barangay; private agencies and individuals for specific purposes shall accrue to
the barangay as trust fund;
(7) In coordination with the barangay development council, prepare
the annual executive and supplemental budgets of the barangay; (9) Solicit or accept, in any or all the foregoing public works and
cooperative enterprises, such cooperation as is made available by
(8) Approve vouchers relating to the disbursement of barangay funds; national, provincial, city, or municipal agencies established by law to
render financial, technical, and advisory assistance to barangays and
(9) Enforce laws and regulations relating to pollution control and
to barangay residents: Provided, however, That in soliciting or
protection of the environment;
accepting such cooperation, the sangguniang barangay need not
(10) Administer the operation of the katarungang pambarangay in pledge any sum of money for expenditure in excess of amounts
accordance with the provisions of this Code; currently in the barangay treasury or encumbered for other purposes;

(11) Exercise general supervision over the activities of the (10) Provide compensation, reasonable allowances or per diems as
sangguniang kabataan; well as travel expenses for sangguniang barangay members and other
barangay officials, subject to the budgetary limitations prescribed
(12) Ensure the delivery of basic services as mandated under Section under Title Five, Book II of this Code: Provided, however, That no
17 of this Code; increase in the compensation or honoraria of the sangguniang
barangay members shall take effect until after the expiration of the
(13) Conduct an annual palarong barangay which shall feature
traditional sports and disciplines included in national and international full term of all members of the sangguniang barangay approving such
increase;

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 (11) Hold fund-raising activities for barangay projects without the (b) The punong barangay, the sangguniang barangay members, the
need of securing permits from any national or local office or agency. barangay treasurer, and the barangay secretary shall also:
The proceeds from such activities shall be tax-exempt and shall
accrue to the general fund of the barangay: Provided, That in the (1) Be entitled to Christmas bonus of at least One thousand pesos
appropriation thereof, the specific purpose for which such fund- (P1,000.00) each, the funds for which shall be taken from the general
raising activity has been held shall be first satisfied: Provided, further, fund of the barangay or from such other funds appropriated by the
That no fund-raising activities shall be held within a period of sixty National Government for the purpose;
(60) days immediately preceding and after a national or local election, (2) Be entitled, during their incumbency, to insurance coverage which
recall, referendum, or plebiscite: Provided, finally, That said fund- shall include, but shall not be limited to temporary and permanent
raising activities shall comply with national policy standards and disability, double indemnity, accident insurance, death and burial
regulations on morals, health, and safety of the persons participating benefits, in accordance with Republic Act Numbered Sixty-nine
therein. The sangguniang barangay, through the punong barangay, hundred forty-two (R.A. No. 6942), entitled “An Act Increasing the
shall render a public accounting of the funds raised at the completion Insurance Benefits of Local Government Officials and Providing Funds
of the project for which the fund-raising activity was undertaken; Therefor”;
(12) Authorize the punong barangay to enter into contracts in behalf (3) Be entitled to free medical care including subsistence, medicines,
of the barangay, subject to the provisions of this Code; and medical attendance in any government hospital or institution:
(13) Authorize the barangay treasurer to make direct purchases in an Provided, That such hospital care shall include surgery or surgical
amount not exceeding One thousand pesos (P1,000.00) at any one expenses, medicines, X-rays, laboratory fees, and other hospital
time for the ordinary and essential administrative needs of the expenses;
barangay; In case of extreme urgency where there is no available government
(14) Prescribe fines in amounts not exceeding One thousand pesos hospital or institution, the barangay official concerned may submit
(P1,000.00) for violation of barangay ordinances; himself for immediate medical attendance to the nearest private
clinic, hospital or institution and the expenses not exceeding Five
(15) Provide for the administrative needs of the lupong thousand pesos (P5,000.00) that may be incurred therein shall be
tagapamayapa and the pangkat ng tagapagkasundo; chargeable against the funds of the barangay concerned;
(16) Provide for the organization of community brigades, barangay (4) Be exempted during their incumbency from paying tuition and
tanod, or community service units as may be necessary; matriculation fees for their legitimate dependent children attending
state colleges or universities. He may likewise avail of such
(17) Organize regular lectures, programs, or fora on community educational benefits in a state college or university located within the
problems such as sanitation, nutrition, literacy, and drug abuse, and province or city to which the barangay belongs; and
convene assemblies to encourage citizen participation in government;
(5) Be entitled to appropriate civil service eligibility on the basis of the
(18) Adopt measures to prevent and control the proliferation of number of years of service to the barangay, pursuant to the rules and
squatters and mendicants in the barangay; regulations issued by the Civil Service Commission.
(19) Provide for the proper development and welfare of children in (c) Elective barangay officials shall have preference in appointments to
the barangay by promoting and supporting activities for the any government position or in any government-owned or -controlled
protection and total development of children, particularly those below corporations, including their subsidiaries, after their tenure of office,
seven (7) years of age; subject to the requisite qualifications and the provisions of the
(20) Adopt measures towards the prevention and eradication of drug immediately preceding paragraph.
abuse, child abuse, and juvenile delinquency; (d) All duly appointed members of the barangay tanod brigades, or their
(21) Initiate the establishment of a barangay high school, whenever equivalent, which shall number not more than twenty (20) in each
feasible, in accordance with law; barangay, shall be granted insurance or other benefits during their
incumbency, chargeable to the barangay or the city or municipal
(22) Provide for the establishment of a non-formal education center government to which the barangay belongs.
in the barangay whenever feasible, in coordination with the
Department of Education, Culture and Sports;
CHAPTER V
(23) Provide for the delivery of basic services; and Appointive Barangay Officials
(24) Exercise such other powers and perform such other duties and SECTION 394. Barangay Secretary: Appointment,
functions as may be prescribed by law or ordinance. Qualifications, Powers and Duties. – (a) The barangay secretary
SECTION 392. Other Duties of Sangguniang Barangay shall be appointed by the punong barangay with the concurrence of the
Members. – In addition to their duties as members of the sangguniang majority of all the sangguniang barangay members. The appointment of
barangay, sangguniang barangay members may: the barangay secretary shall not be subject to attestation by the Civil
Service Commission.
(a) Assist the punong barangay in the discharge of his duties and
functions; (b) The barangay secretary shall be of legal age, a qualified voter and an
actual resident of the barangay concerned.
(b) Act as peace officers in the maintenance of public order and safety;
and (c) No person shall be appointed barangay secretary if he is a
sangguniang barangay member, a government employee, or a relative
(c) Perform such other duties and functions as the punong barangay may of the punong barangay within the fourth civil degree of consanguinity
delegate. of affinity.
SECTION 393. Benefits of Barangay Officials. – (a) (d) The barangay secretary shall:
Barangay officials, including barangay tanods and members of the
lupong tagapamayapa, shall receive honoraria, allowances, and such (1) Keep custody of all records of the sangguniang barangay and the
other emoluments as may be authorized by law or barangay, municipal barangay assembly meetings;
or city ordinance in accordance with the provisions of this Code, but in (2) Prepare and keep the minutes of all meetings of the sangguniang
no case shall it be less than One thousand pesos (P1,000.00) per month barangay and the barangay assembly;
for the punong barangay and Six hundred pesos (P600.00) per month
for the sangguniang barangay members, barangay treasurer, and (3) Prepare a list of members of the barangay assembly, and have
barangay secretary: Provided, however, That the annual appropriations the same posted in conspicuous places within the barangay;
for personal services shall be subject to the budgetary limitations
prescribed under Title Five, Book II of this Code;

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 (4) Assist in the preparation of all necessary forms for the conduct of activities and finances as well as problems affecting the barangay. Its
barangay elections, initiatives, referenda or plebiscites, in meetings shall be held upon call of the punong barangay or of at least
coordination with the COMELEC; four (4) members of the sangguniang barangay, or upon written petition
of at least five percent (5%) of the assembly members.
(5) Assist the municipal civil registrar in the registration of births,
deaths, and marriages; (c) No meeting of the barangay assembly shall take place unless a written
notice is given one (1) week prior to the meeting except on matters
(6) Keep an updated record of all inhabitants of the barangay involving public safety or security, in which case notice within a
containing the following items of information: name, address, place reasonable time shall be sufficient. The punong barangay, or in his
and date of birth, sex, civil status, citizenship, occupation, and such absence, the sangguniang barangay member acting as punong
other items of information as may be prescribed by law or ordinance; barangay, or any assembly member selected during the meeting, shall
(7) Submit a report on the actual number of barangay residents as act as presiding officer in all the meetings of the assembly. The barangay
often as may be required by the sangguniang barangay; and secretary, or in his absence, any member designated by the presiding
officer to act as secretary, shall discharge the duties of secretary of the
(8) Exercise such other powers and perform such other duties and barangay assembly.
functions as may be prescribed by law or ordinance.
SECTION 398. Powers of the Barangay Assembly. – The
SECTION 395. Barangay Treasurer: Appointment, barangay assembly shall:
Qualifications, Powers and Duties. – (a) The barangay treasurer
shall be appointed by the punong barangay with the concurrence of the (a) Initiate legislative processes by recommending to the sangguniang
majority of all the sangguniang barangay members. The appointment of barangay the adoption of measures for the welfare of the barangay and
the barangay treasurer shall not be subject to attestation by the Civil the city or municipality concerned;
Service Commission. (b) Decide on the adoption of initiative as a legal process whereby the
(b) The barangay treasurer shall be of legal age, a qualified voter, and registered voters of the barangay may directly propose, enact, or amend
an actual resident of the barangay concerned. any ordinance; and

(c) No person shall be appointed barangay treasurer if he is a (c) Hear and pass upon the semestral report of the sangguniang
sangguniang barangay member, a government employee, or a relative barangay concerning its activities and finances.
of the punong barangay within the fourth civil degree of consanguinity
or affinity.
CHAPTER VII
(d) The barangay treasurer shall be bonded in accordance with existing
laws in an amount to be determined by the sangguniang barangay but KATARUNGANG PAMBARANGAY
not exceeding Ten thousand pesos (P10,000.00), premiums for which
shall be paid by the barangay. SECTION 399. Lupong Tagapamayapa. – (a) There is
hereby created in each barangay a lupong tagapamayapa, hereinafter
(e) The barangay treasurer shall: referred to as the lupon, composed of the punong barangay, as chairman
and ten (10) to twenty (20) members. The lupon shall be constituted
(1) Keep custody of barangay funds and properties; every three (3) years in the manner provided herein.
(2) Collect and issue official receipts for taxes, fees, contributions, (b) Any person actually residing or working in the barangay, not
monies, materials, and all other resources accruing to the barangay otherwise expressly disqualified by law, and possessing integrity,
treasury and deposit the same in the account of the barangay as impartiality, independence of mind, sense of fairness, and reputation for
provided under Title Five, Book II of this Code; probity, may be appointed a member of the lupon.
(3) Disburse funds in accordance with the financial procedures (c) A notice to constitute the lupon, which shall include the names of
provided in this Code; proposed members who have expressed their willingness to serve, shall
(4) Submit to the punong barangay a statement covering the actual be prepared by the punong barangay within the first fifteen (15) days
and estimates of income and expenditures for the preceding and from the start of his term of office. Such notice shall be posted in three
ensuing calendar years, respectively, subject to the provisions of Title (3) conspicuous places in the barangay continuously for a period of not
Five, Book II of this Code. less than three (3) weeks;

(5) Render a written accounting report of all barangay funds and (d) The punong barangay, taking into consideration any opposition to
property under his custody at the end of each calendar year, and the proposed appointment or any recommendations for appointment as
ensure that such report shall be made available to the members of may have been made within the period of posting, shall within ten (10)
the barangay assembly and other government agencies concerned; days thereafter, appoint as members those whom he determines to be
suitable therefor. Appointments shall be in writing, signed by the punong
(6) Certify as to the availability of funds whenever necessary; barangay, and attested to by the barangay secretary.
(7) Plan and attend to the rural postal circuit within his jurisdiction; (e) The list of appointed members shall be posted in three (3)
and conspicuous places in the barangay for the entire duration of their term
of office; and
(8) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance. (f) In barangays where majority of the inhabitants are members of
indigenous cultural communities, local systems of settling disputes
SECTION 396. Other Appointive Officials. – The
through their councils of datus or elders shall be recognized without
qualifications, duties, and functions of all other barangay officials
prejudice to the applicable provisions of this Code.
appointed by the punong barangay shall be governed by the provisions
of this Code and other laws or by barangay ordinances. SECTION 400. Oath and Term of Office. – Upon
appointment, each lupon member shall take an oath of office before the
punong barangay. He shall hold office until a new lupon is constituted on
CHAPTER VI the third year following his appointment unless sooner terminated by
BARANGAY ASSEMBLY resignation, transfer of residence or place of work, or withdrawal of
SECTION 397. Composition; Meetings. – (a) There shall appointment by the punong barangay with the concurrence of the
be a barangay assembly composed of all persons who are actual majority of all the members of the lupon.
residents of the barangay for at least six (6) months, fifteen (15) years SECTION 401. Vacancies. – Should a vacancy occur in the
of age or over, citizens of the Philippines, and duly registered in the list lupon for any cause, the punong barangay shall immediately appoint a
of barangay assembly members. qualified person who shall hold office only for the unexpired portion of
(b) The barangay assembly shall meet at least twice a year to hear and the term.
discuss the semestral report of the sangguniang barangay concerning its
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 SECTION 402. Functions of the Lupon. – The lupon shall: (c) Offenses punishable by imprisonment exceeding one (1) year or a
fine exceeding Five thousand pesos (P5,000.00);
(a) Exercise administrative supervision over the conciliation panels
provided herein; (d) Offenses where there is no private offended party;
(b) Meet regularly once a month to provide a forum for exchange of ideas (e) Where the dispute involves real properties located in different cities
among its members and the public on matters relevant to the amicable or municipalities unless the parties thereto agree to submit their
settlement of disputes, and to enable various conciliation panel members differences to amicable settlement by an appropriate lupon;
to share with one another their observations and experiences in effecting
speedy resolution of disputes; and (f) Disputes involving parties who actually reside in barangays of
different cities or municipalities, except where such barangay units adjoin
(c) Exercise such other powers and perform such other duties and each other and the parties thereto agree to submit their differences to
functions as may be prescribed by law or ordinance. amicable settlement by an appropriate lupon;
SECTION 403. Secretary of the Lupon. – The barangay (g) Such other classes of disputes which the President may determine in
secretary shall concurrently serve as the secretary of the lupon. He shall the interest of justice or upon the recommendation of the Secretary of
record the results of mediation proceedings before the punong barangay Justice.
and shall submit a report thereon to the proper city or municipal courts.
He shall also receive and keep the records of proceedings submitted to The court in which non-criminal cases not falling within the authority of
him by the various conciliation panels. the lupon under this Code are filed may, at any time before trial, motu
proprio refer the case to the lupon concerned for amicable settlement.
SECTION 404. Pangkat ng Tagapagkasundo. – (a) There
shall be constituted for each dispute brought before the lupon a SECTION 409. Venue. – (a) Disputes between persons
conciliation panel to be known as the pangkat ng tagapagkasundo, actually residing in the same barangay shall be brought for amicable
hereinafter referred to as the pangkat, consisting of three (3) members settlement before the lupon of said barangay.
who shall be chosen by the parties to the dispute from the list of (b) Those involving actual residents of different barangays within the
members of the lupon. same city or municipality shall be brought in the barangay where the
Should the parties fail to agree on the pangkat membership, the same respondent or any of the respondents actually resides, at the election of
shall be determined by lots drawn by the lupon chairman. the complainant.

(b) The three (3) members constituting the pangkat shall elect from (c) All disputes involving real property or any interest therein shall be
among themselves the chairman and the secretary. The secretary shall brought in the barangay where the real property or the larger portion
prepare the minutes of the pangkat proceedings and submit a copy duly thereof is situated.
attested to by the chairman to the lupon secretary and to the proper city (d) Those arising at the workplace where the contending parties are
or municipal court. He shall issue and cause to be served notices to the employed or at the institution where such parties are enrolled for study,
parties concerned. shall be brought in the barangay where such workplace or institution is
The lupon secretary shall issue certified true copies of any public record located.
in his custody that is not by law otherwise declared confidential. Objections to venue shall be raised in the mediation proceedings before
SECTION 405. Vacancies in the Pangkat. – Any vacancy the punong barangay; otherwise, the same shall be deemed waived. Any
in the pangkat shall be chosen by the parties to the dispute from among legal question which may confront the punong barangay in resolving
the other lupon members. Should the parties fail to agree on a common objections to venue herein referred to may be submitted to the Secretary
choice, the vacancy shall be filled by lot to be drawn by the lupon of Justice or his duly designated representative, whose ruling thereon
chairman. shall be binding.

SECTION 406. Character of Office and Service of Lupon SECTION 410. Procedure for Amicable Settlement. –
Members. – (a) The lupon members, while in the performance of their (a) Who may initiate proceeding – Upon payment of the appropriate
official duties or on the occasion thereof, shall be deemed as persons in filing fee, any individual who has a cause of action against another
authority, as defined in the Revised Penal Code. individual involving any matter within the authority of the lupon may
complain, orally or in writing, to the lupon chairman of the barangay.
(b) The lupon or pangkat members shall serve without compensation,
except as provided for in Section 393 and without prejudice to incentives (b) Mediation by lupon chairman – Upon receipt of the complaint, the
as provided for in this section and in Book IV of this Code. The lupon chairman shall, within the next working day, summon the
Department of the Interior and Local Government shall provide for a respondent(s), with notice to the complainant(s) for them and their
system of granting economic or other incentives to the lupon or pangkat witnesses to appear before him for a mediation of their conflicting
members who adequately demonstrate the ability to judiciously and interests. If he fails in his mediation effort within fifteen (15) days from
expeditiously resolve cases referred to them. While in the performance the first meeting of the parties before him, he shall forthwith set a date
of their duties, the lupon or pangkat members, whether in public or for the constitution of the pangkat in accordance with the provisions of
private employment, shall be deemed to be on official time, and shall not this Chapter.
suffer from any diminution in compensation or allowance from said (c) Suspension of prescriptive period of offenses – While the dispute is
employment by reason thereof. under mediation, conciliation, or arbitration, the prescriptive periods for
SECTION 407. Legal Advice on Matters Involving offenses and cause of action under existing laws shall be interrupted
Questions of Law. – The provincial, city legal officer or prosecutor or upon filing of the complaint with the punong barangay. The prescriptive
the municipal legal officer shall render legal advice on matters involving periods shall resume upon receipt by the complainant of the complaint
questions of law to the punong barangay or any lupon or pangkat or the certificate of repudiation or of the certification to file action issued
member whenever necessary in the exercise of his functions in the by the lupon or pangkat secretary: Provided, however, That such
administration of the katarungang pambarangay. interruption shall not exceed sixty (60) days from the filing of the
complaint with the punong barangay.
SECTION 408. Subject Matter for Amicable Settlement;
Exception Thereto. – The lupon of each barangay shall have authority (d) Issuance of summons; hearing; grounds for disqualification – The
to bring together the parties actually residing in the same city or pangkat shall convene not later than three (3) days from its constitution,
municipality for amicable settlement of all disputes except: on the day and hour set by the lupon chairman, to hear both parties and
their witnesses, simplify issues, and explore all possibilities for amicable
(a) Where one party is the government, or any subdivision or settlement. For this purpose, the pangkat may issue summons for the
instrumentality thereof; personal appearance of parties and witnesses before it. In the event that
a party moves to disqualify any member of the pangkat by reason of
(b) Where one party is a public officer or employee, and the dispute relationship, bias, interest, or any other similar grounds discovered after
relates to the performance of his official functions; the constitution of the pangkat, the matter shall be resolved by the
affirmative vote of the majority of the pangkat whose decision shall be
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final. Should disqualification be decided upon, the resulting vacancy shall upon approval thereof, have the force and effect of a judgment of said
be filled as herein provided for. court.
e) Period to arrive at a settlement – The pangkat shall arrive at a SECTION 417. Execution. – The amicable settlement or
settlement or resolution of the dispute within fifteen (15) days from the arbitration award may be enforced by execution by the lupon within six
day it convenes in accordance with this section. This period shall, at the (6) months from the date of the settlement. After the lapse of such time,
discretion of the pangkat, be extendible for another period which shall the settlement may be enforced by action in the appropriate city or
not exceed fifteen (15) days, except in clearly meritorious cases. municipal court.
SECTION 411. Form of Settlement. – All amicable SECTION 418. Repudiation. – Any party to the dispute
settlements shall be in writing, in a language or dialect known to the may, within ten (10) days from the date of the settlement, repudiate the
parties, signed by them, and attested to by the lupon chairman or the same by filing with the lupon chairman a statement to that effect sworn
pangkat chairman, as the case may be. When the parties to the dispute to before him, where the consent is vitiated by fraud, violence, or
do not use the same language or dialect, the settlement shall be written intimidation. Such repudiation shall be sufficient basis for the issuance of
in the language known to them. the certification for filing a complaint as hereinabove provided.
SECTION 412. Conciliation. – (a) Pre-condition to Filing of SECTION 419. Transmittal of Settlement and
Complaint in Court. – No complaint, petition, action, or proceeding Arbitration Award to the Court. – The secretary of the lupon shall
involving any matter within the authority of the lupon shall be filed or transmit the settlement or the arbitration award to the appropriate city
instituted directly in court or any other government office for or municipal court within five (5) days from the date of the award or from
adjudication, unless there has been a confrontation between the parties the lapse of the ten-day period repudiating the settlement and shall
before the lupon chairman or the pangkat, and that no conciliation or furnish copies thereof to each of the parties to the settlement and the
settlement has been reached as certified by the lupon secretary or lupon chairman.
pangkat secretary as attested to by the lupon or pangkat chairman or
unless the settlement has been repudiated by the parties thereto. SECTION 420. Power to Administer Oaths. – The punong
barangay, as chairman of the lupong tagapamayapa, and the members
(b) Where Parties May Go Directly to Court. – The parties may go directly of the pangkat are hereby authorized to administer oaths in connection
to court in the following instances: with any matter relating to all proceedings in the implementation of the
katarungang pambarangay.
(1) Where the accused is under detention;
SECTION 421. Administration; Rules and Regulations.
(2) Where a person has otherwise been deprived of personal liberty – The city or municipal mayor, as the case may be, shall see to the
calling for habeas corpus proceedings; efficient and effective implementation and administration of the
(3) Where actions are coupled with provisional remedies such as katarungang pambarangay. The Secretary of Justice shall promulgate the
preliminary injunction, attachment, delivery of personal property and rules and regulations necessary to implement this Chapter.
support pendente lite; and SECTION 422. Appropriations. – Such amount as may be
(4) Where the action may otherwise be barred by the statute of necessary for the effective implementation of the katarungang
limitations. pambarangay shall be provided for in the annual budget of the city or
municipality concerned.
(c) Conciliation Among Members of Indigenous Cultural Communities. –
The customs and traditions of indigenous cultural communities shall be
applied in settling disputes between members of the cultural CHAPTER VIII
communities. Sangguniang Kabataan
SECTION 413. Arbitration. – (a) The parties may, at any SECTION 423. Creation and Election. – (a) There shall be
stage of the proceedings, agree in writing that they shall abide by the in every barangay a sangguniang kabataan to be composed of a
arbitration award of the lupon chairman or the pangkat. Such agreement chairman, seven (7) members, a secretary, and a treasurer.
to arbitrate may be repudiated within five (5) days from the date thereof
for the same grounds and in accordance with the procedure hereinafter (b) A sangguniang kabataan official who, during his term of office, shall
prescribed. The arbitration award shall be made after the lapse of the have passed the age of twenty-one (21) years shall be allowed to serve
the remaining portion of the term for which he was elected.
period for repudiation and within ten (10) days thereafter.
(b) The arbitration award shall be in writing in a language or dialect SECTION 424. Katipunan ng Kabataan. – The katipunan
ng kabataan shall be composed of Filipino citizens actually residing in the
known to the parties. When the parties to the dispute do not use the
same language or dialect, the award shall be written in the language or barangay for at least six (6) months, who are fifteen (15) but less than
eighteen (18) years of age on the day of the election, and who are duly
dialect known to them.
registered in the list of the sangguniang kabataan or in the official
SECTION 414. Proceedings Open to the Public; barangay list in the custody of the barangay secretary.
Exception. – All proceedings for settlement shall be public and informal:
Provided, however, That the lupon chairman or the pangkat chairman, SECTION 425. Meetings of the Katipunan ng Kabataan.
as the case may be, may motu proprio or upon request of a party, – The katipunan ng kabataan shall meet at least once every three (3)
exclude the public from the proceedings in the interest of privacy, months, or at the call of the chairman of the sangguniang kabataan or
upon written petition of at least one-twentieth (1/20) of its members, to
decency, or public morals.
decide on important issues affecting the youth of the barangay.
SECTION 415. Appearance of Parties in Person. – In all
katarungang pambarangay proceedings, the parties must appear in SECTION 426. Powers and Functions of the
person without the assistance of counsel or representative, except for Sangguniang Kabataan. – The sangguniang kabataan shall:
minors and incompetents who may be assisted by their next-of-kin who (a) Promulgate resolutions necessary to carry out the objectives of the
are not lawyers. youth in the barangay in accordance with the applicable provisions of this
SECTION 416. Effect of Amicable Settlement and Code;
Arbitration Award. – The amicable settlement and arbitration award (b) Initiate programs designed to enhance the social, political, economic,
shall have the force and effect of a final judgment of a court upon the cultural, intellectual, moral, spiritual, and physical development of the
expiration of ten (10) days from the date thereof, unless repudiation of members;
the settlement has been made or a petition to nullify the award has been
filed before the proper city or municipal court. (c) Hold fund-raising activities, the proceeds of which shall be tax-exempt
and shall accrue to the general fund of the sangguniang kabataan:
However, this provision shall not apply to court cases settled by the lupon Provided, however, That in the appropriation thereof, the specific
under the last paragraph of Section 408 of this Code, in which case the purpose for which such activity has been held shall be first satisfied;
compromise settlement agreed upon by the parties before the lupon
chairman or the pangkat chairman shall be submitted to the court and
Page | 50
(d) Create such bodies or committees as it may deem necessary to (c) Prepare all forms necessary for the conduct of registrations, elections,
effectively carry out its programs and activities; initiatives, referenda, or plebiscites, in coordination with the barangay
secretary and the COMELEC; and
(e) Submit annual and end-of-term reports to the sangguniang barangay
on their projects and activities for the survival and development of the (d) Perform such other duties and discharge such other functions as the
youth in the barangay; chairman of the sangguniang kabataan may prescribe or direct.
(f) Consult and coordinate with all youth organizations in the barangay SECTION 433. Sangguniang Kabataan Treasurer. – The
for policy formulation and program implementation; sangguniang kabataan treasurer shall:
(g) Coordinate with the appropriate national agency for the (a) Take custody of all sangguniang kabataan property and funds not
implementation of youth development projects and programs at the otherwise deposited with the city or municipal treasurer;
national level;
(b) Collect and receive contributions, monies, materials, and all other
(h) Exercise such other powers and perform such other duties and resources intended for the sangguniang kabataan and the katipunan ng
functions as the sangguniang barangay may determine or delegate or as kabataan;
may be prescribed by law or ordinance.
(c) Disburse funds in accordance with an approved budget of the
SECTION 427. Meetings of the Sangguniang Kabataan. sangguniang kabataan;
– The sangguniang kabataan shall meet regularly once a month on the
date, time, and place to be fixed by the said sanggunian. Special (d) Certify to the availability of funds whenever necessary;
meetings may be called by the sangguniang kabataan chairman or any (e) Submit to the sangguniang kabataan and to the sangguniang
three (3) of its members by giving written notice to all members of the barangay certified and detailed statements of actual income and
date, time, place and agenda of the meeting at least one (1) day in expenditures at the end of every month; and
advance. Notices of regular or special meetings shall be furnished the
punong barangay and the sangguniang barangay. (f) Perform such other duties and discharge such other functions as the
chairman of the sangguniang kabataan may direct.
A majority of the members of the sangguniang kabataan shall constitute
a quorum. SECTION 434. Privileges of Sangguniang Kabataan
Officials. – The sangguniang kabataan chairman shall have the same
SECTION 428. Qualifications. – An elective official of the privileges enjoyed by other sangguniang barangay officials under this
sangguniang kabataan must be a Filipino citizen, a qualified voter of the Code subject to such requirements and limitations provided herein.
katipunan ng kabataan, a resident of the barangay for at least one (1) During their incumbency, sangguniang kabataan officials shall be exempt
year immediately prior to election, at least fifteen (15) years but less from payment of tuition and matriculation fees while enrolled in public
than eighteen (18) years of age on the day of the election, able to read tertiary schools, including state colleges and universities. The National
and write Filipino, English, or the local dialect, and must not have been Government shall reimburse said college or university the amount of the
convicted of any crime involving moral turpitude. tuition and matriculation fees: Provided, That, to qualify for the privilege,
SECTION 429. Term of Office. – The sangguniang the said officials shall enroll in a state college or university within or
kabataan chairman and members shall hold office for a period of three nearest their area of jurisdiction.
(3) years, unless sooner removed for cause as provided by law, SECTION 435. Succession and Filling of Vacancies. – (a)
permanently incapacitated, die or resign from office. In case a sangguniang kabataan chairman refuses to assume office, fails
SECTION 430. Sangguniang Kabataan Chairman. – The to qualify, is convicted of a felony, voluntarily resigns, dies, is
registered voters of the katipunan ng kabataan shall elect the chairman permanently incapacitated, is removed from office, or has been absent
of the sangguniang kabataan who shall automatically serve as an ex without leave for more than three (3) consecutive months, the
officio member of the sangguniang barangay upon his assumption to sangguniang kabataan member who obtained the next highest number
office. As such, he shall exercise the same powers, discharge the same of votes in the election immediately preceding shall assume the office of
duties and functions, and enjoy the same privileges as the regular the chairman for the unexpired portion of the term, and shall discharge
sangguniang barangay members, and shall be the chairman of the the powers and duties, and enjoy the rights and privileges appurtenant
committee on youth and sports development in the said sanggunian. to the office. In case the said member refuses to assume the position or
fails to qualify, the sangguniang kabataan member obtaining the next
SECTION 431. Powers and Duties of the Sangguniang highest number of votes shall assume the position of the chairman for
Kabataan Chairman. – In addition to the duties which may be assigned the unexpired portion of the term.
to him by the sangguniang barangay, the sangguniang kabataan
chairman shall: (b) Where two (2) or more sangguniang kabataan members obtained the
same next highest number of votes, the other sangguniang kabataan
(a) Call and preside over all meetings of the katipunan ng kabataan and members shall conduct an election to choose the successor to the
the sangguniang kabataan; chairman from among the said members.
(b) Implement policies, programs, and projects within his jurisdiction in (c) After the vacancy shall have been filled, the sangguniang kabataan
coordination with the sangguniang barangay; chairman shall call a special election to complete the membership of said
sanggunian. Such sangguniang kabataan member shall hold office for
(c) Exercise general supervision over the affairs and activities of the the unexpired portion of the term of the vacant seat.
sangguniang kabataan and the official conduct of its members, and such
other officers of the sangguniang kabataan within his jurisdiction; (d) In case of suspension of the sangguniang kabataan chairman, the
successor, as determined in subsections (a) and (b) of this section shall
(d) With the concurrence of the sangguniang kabataan, appoint from assume the position during the period of such suspension.
among the members of the sangguniang kabataan, the secretary and
treasurer and such other officers as may be deemed necessary; and
CHAPTER IX
(e) Exercise such other powers and perform such other duties and
Pederasyon ng mga Sangguniang Kabataan
functions as may be prescribed by law or ordinance.
SECTION 436. Pederasyon ng mga Sangguniang
SECTION 432. Sangguniang Kabataan Secretary. – The
Kabataan. – (a) There shall be an organization of all the pederasyon ng
sangguniang kabataan secretary shall:
mga sangguniang kabataan to be known as follows:
(a) Keep all records of the katipunan ng kabataan and sangguniang
(1) In municipalities, pambayang pederasyon ng mga sangguniang
kabataan;
kabataan;
(b) Prepare and keep the minutes of all meetings of the katipunan ng
(2) In cities, panlungsod na pederasyon ng mga sangguniang
kabataan and sangguniang kabataan;
kabataan;

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 (3) In provinces, panlalawigang pederasyon ng mga sangguniang SECTION 441. Manner of Creation. – A municipality may
kabataan; be created, divided, merged, abolished, or its boundary substantially
altered only by an Act of Congress and subject to the approval by a
(4) In special metropolitan political subdivisions, pangmetropolitang majority of the votes cast in a plebiscite to be conducted by the COMELEC
pederasyon ng mga sangguniang kabataan; and in the local government unit or units directly affected. Except as may
(5) On the national level, pambansang pederasyon ng mga otherwise be provided in the said Act, the plebiscite shall be held within
sangguniang kabataan. one hundred twenty (120) days from the date of its effectivity.

(b) The pederasyon ng mga sangguniang kabataan shall, at all levels, SECTION 442. Requisites for Creation. – (a) A
elect from among themselves the president, vice-president and such municipality may be created if it has an average annual income, as
other officers as may be necessary and shall be organized in the following certified by the provincial treasurer, of at least Two million five hundred
manner: thousand pesos (P2,500,000.00) for the last two (2) consecutive years
based on the 1991 constant prices; a population of at least twenty-five
(1) The panlungsod and pambayang pederasyon shall be composed thousand (25,000) inhabitants as certified by the National Statistics
of the sangguniang kabataan chairmen of barangays in the city or Office; and a contiguous territory of at least fifty (50) square kilometers
municipality, respectively; as certified by the Lands Management Bureau: Provided, That the
creation thereof shall not reduce the land area, population or income of
(2) The panlalawigang pederasyon shall be composed of presidents
the original municipality or municipalities at the time of said creation to
of the panlungsod and pambayang pederasyon;
less than the minimum requirements prescribed herein.
(3) The pangmetropolitang pederasyon shall be composed of
(b) The territorial jurisdiction of a newly-created municipality shall be
presidents of the panlungsod and pambayang pederasyon;
properly identified by metes and bounds. The requirement on land area
(c) The elected presidents of the pederasyon at the provincial, highly shall not apply where the municipality proposed to be created is
urbanized city, and metropolitan political subdivision levels shall composed of one (1) or more islands. The territory need not be
constitute the pambansang katipunan ng mga sangguniang kabataan. contiguous if it comprises two (2) or more islands.

SECTION 437. Constitution and By-Laws. – The term of (c) The average annual income shall include the income accruing to the
office, manner of election, removal and suspension of the officers of the general fund of the municipality concerned, exclusive of special funds,
pederasyon ng mga sangguniang kabataan at all levels shall be governed transfers and non-recurring income.
by the constitution and by-laws of the pederasyon in conformity with the
(d) Municipalities existing as of the date of the effectivity of this Code
provisions of this Code and national policies on youth.
shall continue to exist and operate as such. Existing municipal districts
SECTION 438. Membership in the Sanggunian. – (a) A organized pursuant to presidential issuances or executive orders and
sangguniang kabataan chairman shall, upon certification of his election which have their respective set of elective municipal officials holding
by the COMELEC and during his tenure of office is elected as pederasyon office at the time of the effectivity of this Code shall henceforth be
president, serve as an ex officio member of the sangguniang considered as regular municipalities.
panlalawigan, sangguniang panlungsod, and sangguniang bayan, as the
case may be, without need of further appointment.
CHAPTER II
(b) The vice-president of the pederasyon whose president has been Municipal Officials in General
elected as president of a higher pederasyon shall serve as ex officio
member of the sanggunian concerned without need of further SECTION 443. Officials of the Municipal Government. –
appointment. (a) There shall be in each municipality a municipal mayor, a municipal
vice-mayor, sangguniang bayan members, a secretary to the
(c) The pederasyon president or vice-president, as the case may be, shall sangguniang bayan, a municipal treasurer, a municipal assessor, a
be the chairman of the committee on youth and sports development of municipal accountant, a municipal budget officer, a municipal planning
the sanggunian concerned. and development coordinator, a municipal engineer/building official, a
municipal health officer and a municipal civil registrar.
CHAPTER X (b) In addition thereto, the mayor may appoint a municipal administrator,
Linggo ng Kabataan a municipal legal officer, a municipal agriculturist, a municipal
environment and natural resources officer, a municipal social welfare and
SECTION 439. Observance of Linggo ng Kabataan. – (a) development officer, a municipal architect, and a municipal information
Every barangay, municipality, city and province shall, in coordination with officer.
the pederasyon ng mga sangguniang kabataan at all levels, conduct an
annual activity to be known as the Linggo ng Kabataan on such date as (c) The sangguniang bayan may:
shall be determined by the Office of the President.
(1) Maintain existing offices not mentioned in subsections (a) and (b)
(b) The observance of the Linggo ng Kabataan shall include the election hereof;
of the counterparts of all local elective and appointive officials, as well as
(2) Create such other offices as may be necessary to carry out the
heads of national offices or agencies stationed or assigned in the
purposes of the municipal government; or
territorial jurisdiction of the local government unit, among in-school and
community youth residing in the local government unit concerned from (3) Consolidate the functions of any office with those of another in
ages thirteen (13) to seventeen (17). During said week, they shall hold the interest of efficiency and economy.
office as boy and girl officials and shall perform such duties and conduct
such activities as may be provided in the ordinance enacted pursuant to (d) Unless otherwise provided herein, heads of departments and offices
this Chapter. shall be appointed by the municipal mayor with the concurrence of the
majority of all the sangguniang bayan members, subject to civil service
law, rules and regulations. The sangguniang bayan shall act on the
TITLE II appointment within fifteen (15) days from the date of its submission;
The Municipality otherwise, the same shall be deemed confirmed.
CHAPTER I
(e) Elective and appointive municipal officials shall receive such
Role and Creation of the Municipality compensation, allowances and other emoluments as may be determined
SECTION 440. Role of the Municipality. – The by law or ordinance, subject to the budgetary limitations on personal
municipality, consisting of a group of barangays, serves primarily as a services as prescribed in Title Five, Book Two of this Code: Provided,
general purpose government for the coordination and delivery of basic, That no increase in compensation of the mayor, vice-mayor, and
regular and direct services and effective governance of the inhabitants sangguniang bayan members shall take effect until after the expiration
within its territorial jurisdiction. of the full term of all the elective local officials approving such increase.

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 CHAPTER III (xiii) Visit component barangays of the municipality at least once
Officials and Offices Common to All Municipalities every six (6) months to deepen his understanding of problems and
ARTICLE I conditions therein, listen and give appropriate counsel to local
The Municipal Mayor officials and inhabitants, inform the component barangay officials
and inhabitants of general laws and ordinances which especially
SECTION 444. The Chief Executive: Powers, Duties, concern them, and otherwise conduct visits and inspections to the
Functions and Compensation. – (a) The municipal mayor, as the chief end that the governance of the municipality will improve the
executive of the municipal government, shall exercise such powers and quality of life of the inhabitants;
performs such duties and functions as provided by this Code and other
laws. (xiv) Act on leave applications of officials and employees appointed
by him and the commutation of the monetary value of leave credits
(b) For efficient, effective and economical governance the purpose of according to law;
which is the general welfare of the municipality and its inhabitants
pursuant to Section 16 of this Code, the municipal mayor shall: (xv) Authorize official trips outside of the municipality of municipal
officials and employees for a period not exceeding thirty (30) days;
(1) Exercise general supervision and control over all programs,
projects, services, and activities of the municipal government, and in (xvi) Call upon any national official or employee stationed in or
this connection, shall: assigned to the municipality to advise him on matters affecting the
municipality and to make recommendations thereon, or to
(i) Determine the guidelines of municipal policies and be coordinate in the formulation and implementation of plans,
responsible to the sangguniang bayan for the program of programs and projects, and when appropriate, initiate an
government; administrative or judicial action against a national government
official or employee who may have committed an offense in the
(ii) Direct the formulation of the municipal development plan, with
performance of his official duties while stationed in or assigned to
the assistance of the municipal development council, and upon
the local government unit concerned;
approval thereof by the sangguniang bayan, implement the same;
(xvii) Subject to availability of funds, authorize payment of medical
(iii) At the opening of the regular session of the sangguniang
care, necessary transportation, subsistence, hospital or medical
bayan for every calendar year and, as may be deemed necessary,
fees of municipal officials and employees who are injured while in
present the program of government and propose policies and
the performance of their official duties and functions;
projects for the consideration of the sangguniang bayan as the
general welfare of the inhabitants and the needs of the municipal (xviii) Solemnize marriages, any provision of law to the contrary
government may require; notwithstanding;
(iv) Initiate and propose legislative measures to the sangguniang (xix) Conduct a palarong bayan, in coordination with the
bayan and, from time to time as the situation may require, provide Department of Education, Culture and Sports, as an annual activity
such information and data needed or requested by said which shall feature traditional sports and disciplines included in
sanggunian in the performance of its legislative functions; national and international games; and
(v) Appoint all officials and employees whose salaries and wages (xx) Submit to the provincial governor the following reports: an
are wholly or mainly paid out of municipal funds and whose annual report containing a summary of all matters pertaining to
appointments are not otherwise provided for in this Code, as well the management, administration and development of the
as those he may be authorized by law to appoint; municipality and all information and data relative to its political,
social and economic conditions; and supplemental reports when
(vi) Upon authorization by the sangguniang bayan, represent the
unexpected events and situations arise at any time during the
municipality in all its business transactions and sign on its behalf
year, particularly when man-made or natural disasters or
all bonds, contracts, and obligations, and such other documents
calamities affect the general welfare of the municipality, province,
made pursuant to law or ordinance;
region or country. Mayors of municipalities of the Metropolitan
(vii) Carry out such emergency measures as may be necessary Manila Area and other metropolitan political subdivisions shall
during and in the aftermath of man-made and natural disasters submit said reports to their respective metropolitan council
and calamities; chairmen and to the Office of the President;

(viii) Determine, according to law or ordinance, the time, manner (2) Enforce all laws and ordinances relative to the governance of the
and place of payment of salaries or wages of the officials and municipality and the exercise of its corporate powers provided for
employees of the municipality; under Section 22 of this Code, implement all approved policies,
programs, projects, services and activities of the municipality and, in
(ix) Allocate and assign office space to municipal and other officials addition to the foregoing, shall:
and employees who, by law or ordinance, are entitled to such
space in the municipal hall and other buildings owned or leased by (i) Ensure that the acts of the municipality’s component barangays
the municipal government; and of its officials and employees are within the scope of their
prescribed powers, functions, duties and responsibilities;
(x) Ensure that all executive officials and employees of the
municipality faithfully discharge their duties and functions as (ii) Call conventions, conferences, seminars or meetings of any
provided by law and this Code, and cause to be instituted elective and appointive officials of the municipality, including
administrative or judicial proceedings against any official or provincial officials and national officials and employees stationed
employee of the municipality who may have committed an offense in or assigned to the municipality at such time and place and on
in the performance of his official duties; such subject as he may deem important for the promotion of the
general welfare of the local government unit and its inhabitants;
(xi) Examine the books, records and other documents of all offices,
officials, agents or employees of the municipality and in aid of his (iii) Issue such executive orders as are necessary for the proper
executive powers and authority, require all national officials and enforcement and execution of laws and ordinances;
employees stationed in or assigned to the municipality to make
(iv) Be entitled to carry the necessary firearm within his territorial
available to him such books, records, and other documents in their
jurisdiction;
custody, except those classified by law as confidential;
(v) Act as the deputized representative of the National Police
(xii) Furnish copies of executive orders issued by him to the
Commission, formulate the peace and order plan of the
provincial governor within seventy-two (72) hours after their
municipality and upon its approval, implement the same and
issuance: Provided, That municipalities of Metropolitan Manila
exercise general and operational control and supervision over the
Area and that of any metropolitan political subdivision shall furnish
local police forces in the municipality in accordance with R.A. No
copies of said executive orders to the metropolitan authority
6975;
council chairman and to the Office of the President;

Page | 53
 (vi) Call upon the appropriate law enforcement agencies to ARTICLE II
suppress disorder, riot, lawless violence, rebellion or sedition or to The Vice Mayor
apprehend violators of the law when public interest so requires
and the municipal police forces are inadequate to cope with the SECTION 445. Powers, Duties and Compensation. – (a)
situation or the violators; The vice-mayor shall:

(3) Initiate and maximize the generation of resources and revenues, (1) Be the presiding officer of the sangguniang bayan and sign all
and apply the same to the implementation of development plans, warrants drawn on the municipal treasury for all expenditures
program objectives and priorities as provided for under Section 18 of appropriated for the operation of the sangguniang bayan;
this Code, particularly those resources and revenues programmed for (2) Subject to civil service law, rules and regulations, appoint all
agro-industrial development and country-wide growth and progress, officials and employees of the sangguniang bayan, except those
and relative thereto, shall: whose manner of appointment is specifically provided in this Code;
(i) Require each head of an office or department to prepare and (3) Assume the office of the municipal mayor for the unexpired term
submit an estimate of appropriations for the ensuing calendar of the latter in the event of permanent vacancy as provided for in
year, in accordance with the budget preparation process under Section 44, Book I of this Code;
Title Five, Book II of this Code;
(4) Exercise the powers and perform the duties and functions of the
(ii) Prepare and submit to the sanggunian for approval the municipal mayor in cases of temporary vacancy as provided for in
executive and supplemental budgets of the municipality for the Section 46, Book I of this Code; and
ensuing calendar year in the manner provided for under Title Five,
Book II of this Code; (5) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
(iii) Ensure that all taxes and other revenues of the municipality
are collected, and that municipal funds are applied in accordance (b) The vice-mayor shall receive a monthly compensation corresponding
with law or ordinance to the payment of expenses and settlement to Salary Grade twenty five (25) as prescribed under R.A. No. 6758 and
of obligations of the municipality; the implementing guidelines issued pursuant thereto.
(iv) Issue licenses and permits and suspend or revoke the same ARTICLE III
for any violation of the conditions upon which said licenses or
The Sangguniang Bayan
permits had been issued, pursuant to law or ordinance;
SECTION 446. Composition. – (a) The sangguniang bayan,
(v) Issue permits, without need of approval therefor from any
national agency, for the holding of activities for any charitable or the legislative body of the municipality, shall be composed of the
welfare purpose, excluding prohibited games of chance or shows municipal vice mayor as the presiding officer, the regular sanggunian
members, the president of the municipal chapter of the liga ng mga
contrary to law, public policy and public morals;
barangay, the president of the pambayang pederasyon ng mga
(vi) Require owners of illegally constructed houses, buildings or sangguniang kabataan, and the sectoral representatives, as members.
other structures to obtain the necessary permit, subject to such
fines and penalties as may be imposed by law or ordinance, or to (b) In addition thereto, there shall be three (3) sectoral representatives:
make necessary changes in the construction of the same when one (1) from the women; and as shall be determined by the sanggunian
said construction violates any law or ordinance, or to order the concerned within ninety (90) days prior to the holding of local elections,
demolition or removal of said house, building or structure within one (1) from the agricultural or industrial workers, and one (1) from other
sectors, including the urban poor, indigenous cultural communities, or
the period prescribed by law or ordinance;
disabled persons.
(vii) Adopt adequate measures to safeguard and conserve land,
(c) The regular members of the sangguniang bayan and the sectoral
mineral, marine, forest, and other resources of the municipality;
representatives shall be elected in the manner as may be provided for by
(viii) Provide efficient and effective property and supply law.
management in the municipality; and protect the funds, credits,
SECTION 447. Powers, Duties, Functions and
rights and other properties of the municipality; and
Compensation. – (a) The sangguniang bayan, as the legislative body
(ix) Institute or cause to be instituted administrative or judicial of the municipality, shall enact ordinances, approve resolutions and
proceedings for violation of ordinances in the collection of taxes, appropriate funds for the general welfare of the municipality and its
fees or charges, and for the recovery of funds and property; and inhabitants pursuant to Section 16 of this Code and in the proper exercise
cause the municipality to be defended against all suits to ensure of the corporate powers of the municipality as provided for under Section
that its interests, resources and rights shall be adequately 22 of this Code, and shall:
protected;
(1) Approve ordinances and pass resolutions necessary for an efficient
(4) Ensure the delivery of basic services and the provision of adequate and effective municipal government, and in this connection shall:
facilities as provided for under Section 17 of this Code and, in addition
thereto, shall: (i) Review all ordinances approved by the sangguniang barangay
and executive orders issued by the punong barangay to determine
(i) Ensure that the construction and repair of roads and highways whether these are within the scope of the prescribed powers of
funded by the National Government shall be, as far as practicable, the sanggunian and of the punong barangay;
carried out in a spatially contiguous manner and in coordination
with the construction and repair of the roads and bridges of the (ii) Maintain peace and order by enacting measures to prevent and
suppress lawlessness, disorder, riot, violence, rebellion or sedition
municipality and the province; and
and impose penalties for the violation of said ordinances;
(ii) Coordinate the implementation of technical services rendered
by national and provincial offices, including public works and (iii) Approve ordinances imposing a fine not exceeding Two
thousand five hundred pesos (P2,500.00) or an imprisonment for
infrastructure programs in the municipality; and
a period not exceeding six (6) months, or both in the discretion of
(5) Exercise such other powers and perform such other duties and the court, for the violation of a municipal ordinance;
functions as may be prescribed by law or ordinance.
(iv) Adopt measures to protect the inhabitants of the municipality
(c) During his incumbency, the municipal mayor shall hold office in the from the harmful effects of man-made or natural disasters and
municipal hall. calamities and to provide relief services and assistance for victims
during and in the aftermath of said disasters or calamities and their
(d) The municipal mayor shall receive a minimum monthly compensation return to productive livelihood following said events;
corresponding to Salary Grade twenty-seven (27) as prescribed under
R.A. No. 6758 and the implementing guidelines issued pursuant thereto. (v) Enact ordinances intended to prevent, suppress and impose
appropriate penalties for habitual drunkenness in public places,
Page | 54
 vagrancy, mendicancy, prostitution, establishment and (iv) Subject to the provisions of Book II of this Code and applicable
maintenance of houses of ill repute, gambling and other prohibited laws and upon the majority vote of all the members of the
games of chance, fraudulent devices and ways to obtain money or sangguniang bayan, enact ordinances authorizing the floating of
property, drug addiction, maintenance of drug dens, drug pushing, bonds or other instruments of indebtedness, for the purpose of
juvenile delinquency, the printing, distribution or exhibition of raising funds to finance development projects;
obscene or pornographic materials or publications, and such other
activities inimical to the welfare and morals of the inhabitants of (v) Appropriate funds for the construction and maintenance or the
the municipality; rental of buildings for the use of the municipality and, upon the
majority vote of all the members of the sangguniang bayan,
(vi) Protect the environment and impose appropriate penalties for authorize the municipal mayor to lease to private parties such
acts which endanger the environment, such as dynamite fishing public buildings held in a proprietary capacity, subject to existing
and other forms of destructive fishing, illegal logging and laws, rules and regulations;
smuggling of logs, smuggling of natural resources products and of
endangered species of flora and fauna, slash and burn farming, (vi) Prescribe reasonable limits and restraints on the use of
and such other activities which result in pollution, acceleration of property within the jurisdiction of the municipality:
eutrophication of rivers and lakes, or of ecological imbalance; (vii) Adopt a comprehensive land use plan for the municipality:
(vii) Subject to the provisions of this Code and pertinent laws, Provided, That the formulation, adoption, or modification of said
determine the powers and duties of officials and employees of the plan shall be in coordination with the approved provincial
municipality; comprehensive land use plan;

(viii) Determine the positions and salaries, wages, allowances and (viii) Reclassify land within the jurisdiction of the municipality,
other emoluments and benefits of officials and employees paid subject to the pertinent provisions of this Code;
wholly or mainly from municipal funds and provide for (ix) Enact integrated zoning ordinances in consonance with the
expenditures necessary for the proper conduct of programs, approved comprehensive land use plan, subject to existing laws,
projects, services, and activities of the municipal government; rules and regulations; establish fire limits or zones, particularly in
(ix) Authorize the payment of compensation to a qualified person populous centers; and regulate the construction, repair or
not in the government service who fills up a temporary vacancy or modification of buildings within said fire limits or zones in
grant honorarium to any qualified official or employee designated accordance with the provisions of the Fire Code;
to fill a temporary vacancy in a concurrent capacity at the rate (x) Subject to national law, process and approve subdivision plans
authorized by law; for residential, commercial, or industrial purposes and other
(x) Provide a mechanism and the appropriate funds therefor, to development purposes, and collect processing fees and other
ensure the safety and protection of all municipal government charges, the proceeds of which shall accrue entirely to the
property, public documents, or records such as those relating to municipality: Provided, however, That, where approval by a
property inventory, land ownership, records of births, marriages, national agency or office is required, said approval shall not be
deaths, assessments, taxation, accounts, business permits, and withheld for more than thirty (30) days from receipt of the
such other records and documents of public interest in the offices application. Failure to act on the application within the period
and departments of the municipal government; stated above shall be deemed as approval thereof;

(xi) When the finances of the municipal government allow, provide (xi) Subject to the provisions of Book II of this Code, grant the
for additional allowances and other benefits to judges, exclusive privilege of constructing fish corrals or fish pens, or the
prosecutors, public elementary and high school teachers, and taking or catching of bangus fry, prawn fry or kawag-kawag of fry
other national government officials stationed in or assigned to the of any species or fish within the municipal waters;
municipality; (xii) With the concurrence of at least two-thirds (2/3) of all the
(xii) Provide for legal assistance to barangay officials who, in the members of the sangguniang bayan, grant tax exemptions,
performance of their official duties or on the occasion thereof, incentives or reliefs to entities engaged in community growth-
have to initiate judicial proceedings or defend themselves against inducing industries, subject to the provisions of Chapter 5, Title I,
legal action; and Book II of this Code.

(xiii) Provide for group insurance or additional insurance coverage (xiii) Grant loans or provide grants to other local government units
for barangay officials, including members of barangay tanod or to national, provincial and municipal charitable, benevolent or
brigades and other service units, with public or private insurance educational institutions: Provided, That said institutions are
companies, when the finances of the municipal government allow operated and maintained within the municipality;
said coverage. (xiv) Regulate the numbering of residential, commercial and other
(2) Generate and maximize the use of resources and revenues for the buildings; and
development plans, program objectives and priorities of the (xv) Regulate the inspection, weighing and measuring of articles
municipality as provided for under Section 18 of this Code with of commerce.
particular attention to agro-industrial development and countryside
growth and progress, and relative thereto, shall: (3) Subject to the provisions of Book II of this Code, grant franchises,
enact ordinances authorizing the issuance of permits or licenses, or
(i) Approve the annual and supplemental budgets of the municipal enact ordinances levying taxes, fees and charges upon such
government and appropriate funds for specific programs, projects, conditions and for such purposes intended to promote the general
services and activities of the municipality, or for other purposes welfare of the inhabitants of the municipality, and pursuant to this
not contrary to law, in order to promote the general welfare of the legislative authority shall:
municipality and its inhabitants;
(i) Fix and impose reasonable fees and charges for all services
(ii) Subject to the provisions of Book II of this Code and applicable rendered by the municipal government to private persons or
laws and upon the majority vote of all the members of the entities;
sangguniang bayan, enact ordinances levying taxes, fees and
charges, prescribing the rates thereof for general and specific (ii) Regulate any business, occupation, or practice of profession or
purposes, and granting tax exemptions, incentives or reliefs; calling which does not require government examination within the
municipality and the conditions under which the license for said
(iii) Subject to the provisions of Book II of this Code and upon the business or practice of profession may be issued or revoked;
majority vote of all the members of the sangguniang bayan,
authorize the municipal mayor to negotiate and contract loans and (iii) Prescribe the terms and conditions under which public utilities
other forms of indebtedness; owned by the municipality shall be operated by the municipal
government or leased to private persons or entities, preferably
cooperatives;
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 (iv) Regulate the display of and fix the license fees for signs, (ii) Establish markets, slaughterhouses or animal corrals and
signboards, or billboards at the place or places where the authorize the operation thereof, and regulate the construction and
profession or business advertised thereby is, in whole or in part, operation of private markets, talipapas or other similar buildings
conducted; and structures;
(v) Any law to the contrary notwithstanding, authorize and license (iii) Authorize the establishment, maintenance and operation of
the establishment, operation, and maintenance of cockpits, and ferries, wharves, and other structures, and marine and seashore
regulate cockfighting and commercial breeding of gamecocks: or offshore activities intended to accelerate productivity;
Provided, That existing rights should not be prejudiced;
(iv) Regulate the preparation and sale of meat, poultry, fish,
(vi) Subject to the guidelines prescribed by the Department of vegetables, fruits, fresh dairy products, and other foodstuffs for
Transportation and Communications, regulate the operation of public consumption;
tricycles and grant franchises for the operation thereof within the
territorial jurisdiction of the municipality; (v) Regulate the use of streets, avenues, alleys, sidewalks,
bridges, parks and other public places and approve the
(vii) Upon approval by a majority vote of all the members of the construction, improvement, repair and maintenance of the same;
sangguniang bayan, grant a franchise to any person, partnership, establish bus and vehicle stops and terminals or regulate the use
corporation, or cooperative to establish, construct, operate and of the same by privately-owned vehicles which serve the public;
maintain ferries, wharves, markets or slaughterhouses, or such regulate garages and the operation of conveyances for hire;
other similar activities within the municipality as may be allowed designate stands to be occupied by public vehicles when not in
by applicable laws: Provided, That cooperatives shall be given use; regulate the putting up of signs, signposts, awnings and
preference in the grant of such a franchise. awning posts on the streets; provide for the lighting, cleaning and
sprinkling of streets and public places;
(4) Regulate activities relative to the use of land, buildings and
structures within the municipality in order to promote the general (vi) Regulate traffic on all streets and bridges, prohibit the putting
welfare and for said purpose shall: up of encroachments or obstacles thereon, and, when necessary
in the interest of public welfare, authorize the removal of
(i) Declare, prevent or abate any nuisance; encroachments and illegal constructions in public places;
(ii) Require that buildings and the premises thereof and any land (vii) Subject to existing laws, provide for the establishment,
within the municipality be kept and maintained in a sanitary operation, maintenance, and repair of an efficient waterworks
condition; impose penalties for any violation thereof, or upon system to supply water for the inhabitants; regulate the
failure to comply with said requirement, have the work done and construction, maintenance, repair and use of hydrants, pumps,
require the owner, administrator or tenant concerned to pay the cisterns and reservoirs; protect the purity and quantity of the
expenses of the same; or require the filling up of any land or water supply of the municipality and, for this purpose, extend the
premises to a grade necessary for proper sanitation; coverage of appropriate ordinances over all territory within the
(iii) Regulate the disposal of clinical and other wastes from drainage area of said water supply and within one hundred (100)
hospitals, clinics and other similar establishments; meters of the reservoir, conduit, canal, aqueduct, pumping station,
or watershed used in connection with the water service; and
(iv) Regulate the establishment, operation and maintenance of regulate the consumption, use or wastage of water;
cafes, restaurants, beerhouses, hotels, motels, inns, pension
houses, lodging houses, and other similar establishments, (viii) Regulate the drilling and excavation of the ground for the
including tourist guides and transports; laying of water, gas, sewer, and other pipes and the construction,
repair and maintenance of public drains, sewers, cesspools,
(v) Regulate the sale, giving away or dispensing of any intoxicating tunnels and similar structures; regulate the placing of poles and
malt, vino, mixed or fermented liquors at any retail outlet; the use of crosswalks, curbs, and gutters; adopt measures to
ensure public safety against open canals, manholes, live wires and
(vi) Regulate the establishment and provide for the inspection of
other similar hazards to life and property; and regulate the
steam boilers or any heating device in buildings and the storage
construction and use of private water closets, privies and other
of inflammable and highly combustible materials within the
similar structures in buildings and homes;
municipality;
(ix) Regulate the placing, stringing, attaching, installing, repair and
(vii) Regulate the establishment, operation, and maintenance of
construction of all gas mains, electric, telegraph and telephone
entertainment or amusement facilities, including theatrical
wires, conduits, meters and other apparatus; and, provide for the
performances, circuses, billiards pools, public dancing schools,
correction, condemnation or removal of the same when found to
public dance halls, sauna baths, massage parlors, and other places
be dangerous, defective or otherwise hazardous to the welfare of
of entertainment or amusement; regulate such other events or
the inhabitants;
activities for amusement or entertainment, particularly those
which tend to disturb the community or annoy the inhabitants, or (x) Subject to the availability of funds and to existing laws, rules
require the suspension or suppression of the same; or prohibit and regulations, establish and provide for the operation of
certain forms of amusement or entertainment in order to protect vocational and technical schools and similar post-secondary
the social and moral welfare of the community; institutions and, with the approval of the Department of Education,
Culture and Sports, fix and collect reasonable fees and other
(viii) Provide for the impounding of stray animals; regulate the
school charges on said institutions, subject to existing laws on
keeping of animals in homes or as part of a business, and the
tuition fees;
slaughter, sale or disposition of the same; and adopt measures to
prevent and penalize cruelty to animals; and (xi) Establish a scholarship fund for poor but deserving students
residing within the municipality in schools located within its
(ix) Regulate the establishment, operation, and maintenance of
jurisdiction;
funeral parlors and the burial or cremation of the dead, subject to
existing laws, rules and regulations. (xii) Approve measures and adopt quarantine regulations to
prevent the introduction and spread of diseases;
(5) Approve ordinances which shall ensure the efficient and effective
delivery of the basic services and facilities as provided for under (xiii) Provide for an efficient and effective system of solid waste
Section 17 of this Code, and in addition to said services and facilities, and garbage collection and disposal and prohibit littering and the
shall: placing or throwing of garbage, refuse and other filth and wastes;
(i) Provide for the establishment, maintenance, protection, and (xiv) Provide for the care of paupers, the aged, the sick, persons
conservation of communal forests and watersheds, tree parks, of unsound mind, disabled persons, abandoned minors, juvenile
greenbelts, mangroves, and other similar forest development delinquents, drug dependents, abused children and other needy
projects; and disadvantaged persons, particularly children and youth below

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 eighteen (18) years of age and, subject to availability of funds, established in this Code shall not affect the classification and corporate
establish and provide for the operation of centers and facilities for status of existing cities.
said needy and disadvantaged persons;
Independent component cities are those component cities whose
(xv) Establish and provide for the maintenance and improvement charters prohibit their voters from voting for provincial elective officials.
of jails and detention centers, institute sound jail management Independent component cities shall be independent of the province.
programs, and appropriate funds for the subsistence of detainees
and convicted prisoners in the municipality; SECTION 452. Highly Urbanized Cities. – (a) Cities with a
minimum population of two hundred thousand (200,000) inhabitants, as
(xvi) Establish a municipal council whose purpose is the promotion certified by the National Statistics Office, and within the latest annual
of culture and the arts, coordinate with government agencies and income of at least Fifty Million Pesos (P50,000,000.00) based on 1991
non-governmental organizations and, subject to the availability of constant prices, as certified by the city treasurer, shall be classified as
funds, appropriate funds for the support and development of the highly urbanized cities.
same; and
(b) Cities which do not meet the above requirements shall be considered
(xvii) Establish a municipal council for the orderly which shall component cities of the province in which they are geographically
formulate policies and adopt measures mutually beneficial to the located. If a component city is located within the boundaries of two (2)
elderly and to the community; provide incentives for non- or more provinces, such city shall be considered a component of the
governmental agencies and entities and, subject to the availability province of which it used to be a municipality.
of funds, appropriate funds to support programs and projects for
the benefit of the elderly; and (c) Qualified voters of highly urbanized cities shall remain excluded from
voting for elective provincial officials.
(6) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance. Unless otherwise provided in the Constitution or this Code, qualified
voters of independent component cities shall be governed by their
(b) The members of the sangguniang bayan shall receive a minimum respective charters, as amended, on the participation of voters in
monthly compensation corresponding to Salary Grade twenty-four provincial elections.
(24) as prescribed under R.A. No. 6758 and the implementing guidelines
issued pursuant thereto: Provided, That, in municipalities in Metropolitan Qualified voters of cities who acquired the right to vote for elective
Manila Area and other metropolitan political subdivisions, members of provincial officials prior to the classification of said cities as highly-
the sangguniang bayan shall receive a minimum monthly compensation urbanized after the ratification of the Constitution and before the
corresponding to Salary Grade twenty-five (25). effectivity of this Code, shall continue to exercise such right.
SECTION 453. Duty to Declare Highly Urbanized
Status. – It shall be the duty of the President to declare a city as highly
TITLE III
urbanized within thirty (30) days after it shall have met the minimum
The City requirements prescribed in the immediately preceding section, upon
CHAPTER I proper application therefor and ratification in a plebiscite by the qualified
Role and Creation of the City voters therein.
SECTION 448. Role of the City. – The city, consisting of CHAPTER II
more urbanized and developed barangays, serves as a general purpose City Officials in General
government for the coordination and delivery of basic, regular, and direct
SECTION 454. Officials of the City Government. – (a)
services and effective governance of the inhabitants within its territorial There shall be in each city a mayor, a vice-mayor, sangguniang
jurisdiction. panlungsod members, a secretary to the sangguniang panlungsod, a city
SECTION 449. Manner of Creation. – A city may be treasurer, a city assessor, a city accountant, a city budget officer, a city
created, divided, merged, abolished, or its boundary substantially planning and development coordinator, a city engineer, a city health
altered, only by an Act of Congress, and subject to approval by a majority officer, a city civil registrar, a city administrator, a city legal officer, a city
of the votes cast in a plebiscite to be conducted by the COMELEC in the veterinarian, a city social welfare and development officer, and a city
local government unit or units directly affected. Except as may otherwise general services officer.
be provided in such Act, the plebiscite shall be held within one hundred
(b) In addition thereto, the city mayor may appoint a city architect, a city
twenty (120) days from the date of its effectivity. information officer, a city agriculturist, a city population officer, a city
SECTION 450. Requisites for Creation. – (a) A environment and natural resources officer, and a city cooperatives
municipality or a cluster of barangays may be converted into a officer.
component city if it has a locally generated average annual income, as
The appointment of a city population officer shall be optional in the city:
certified by the Department of Finance, of at least One hundred million
Provided, however, That cities which have existing population offices
pesos (P100,000,000.00) for the last two (2) consecutive years based on shall continue to maintain such offices for a period of five (5) years from
2000 constant prices, and if it has either of the following requisites: the date of the effectivity of this Code, after which said offices shall
(i) a contiguous territory of at least one hundred (100) square become optional.
kilometers, as certified by the Land Management Bureau; or (c) The sangguniang panlungsod may:
(ii) a population of not less than one hundred fifty thousand (150,000) (1) Maintain existing offices not mentioned in subsections (a) and (b)
inhabitants, as certified by the National Statistics Office.
hereof;
The creation thereof shall not reduce the land area, population and (2) Create such other offices as may be necessary to carry out the
income of the original unit or units at the time of said creation to less
purposes of the city government; or
than the minimum requirements prescribed herein.
(3) Consolidate the functions of any office with those of another in
(b) The territorial jurisdiction of a newly-created city shall be properly
the interest of efficiency and economy.
identified by metes and bounds. The requirement on land area shall not
apply where the city proposed to be created is composed of one (1) or (d) Unless otherwise provided herein, heads of departments and offices
more islands. The territory need not be contiguous if it comprises two shall be appointed by the city mayor with the concurrence of the majority
(2) or more islands. of all the sangguniang panlungsod members, subject to civil service law,
rules and regulations. The sangguniang panlungsod shall act on the
(c) The average annual income shall include the income accruing to the appointment within fifteen (15) days from the date of its submission,
general fund, exclusive of special funds, transfers, and non-recurring
otherwise the same shall be deemed confirmed.
income.
(e) Elective and appointive city officials shall receive such compensation,
SECTION 451. Cities, Classified. – A city may either be allowances, and other emoluments as may be determined by law or
component or highly urbanized: Provided, however, That the criteria
ordinance, subject to the budgetary limitations on personal services
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prescribed under Title Five, Book II of this Code: Provided, That no and to their respective metropolitan council chairmen in the case
increase in compensation of the mayor, vice-mayor and sangguniang of mayors of cities in the Metropolitan Manila Area and other
panlungsod members shall take effect until after the expiration of the full metropolitan political subdivisions, within seventy-two (72) hours
term of the said local officials approving such increase. after their issuance;
(xiii) Visit component barangays of the city at least once every six
CHAPTER III (6) months to deepen his understanding of problems and
Officials and Offices Common to All Cities conditions, listen and give appropriate counsel to local officials and
ARTICLE I inhabitants, inform the component barangay officials and
inhabitants of general laws and ordinances which especially
The City Mayor
concern them, and otherwise conduct visits and inspections to
SECTION 455. Chief Executive; Powers, Duties and ensure that the governance of the city will improve the quality of
Compensation. – (a) The city mayor, as chief executive of the city life of the inhabitants;
government, shall exercise such powers and perform such duties and
(xiv) Act on leave applications of officials and employees appointed
functions as provided by this Code and other laws.
by him and the commutation of the monetary value of their leave
(b) For efficient, effective and economical governance the purpose of credits in accordance with law;
which is the general welfare of the city and its inhabitants pursuant to
(xv) Authorize official trips of city officials and employees outside
Section 16 of this Code, the city mayor shall:
of the city for a period not exceeding thirty (30) days;
(1) Exercise general supervision and control over all programs,
projects, services, and activities of the city government, and in this (xvi) Call upon any national official or employee stationed in or
assigned to the city to advise him on matters affecting the city and
connection, shall:
to make recommendations thereon; coordinate with said official or
(i) Determine the guidelines of city policies and be responsible to employee in the formulation and implementation of plans,
the sangguniang panlungsod for the program of government; programs and projects; and, when appropriate, initiate an
administrative or judicial action against a national government
(ii) Direct the formulation of the city development plan, with the official or employee who may have committed an offense in the
assistance of the city development council, and upon approval performance of his official duties while stationed in or assigned to
thereof by the sangguniang panlungsod, implement the same; the city;
(iii) Present the program of government and propose policies and (xvii) Authorize payment for medical care, necessary
projects for the consideration of the sangguniang panlungsod at transportation, subsistence, hospital or medical fees of city officials
the opening of the regular session of the sangguniang panlungsod and employees who are injured while in the performance of their
every calendar year and as often as may be deemed necessary as duties and functions, subject to availability of funds;
the general welfare of the inhabitants and the needs of the city
government may require; (xviii) Solemnize marriages, any provision of law to the contrary
notwithstanding;
(iv) Initiate and propose legislative measures to the sangguniang
panlungsod and as often as may be deemed necessary, provide (xix) Conduct an annual palarong panlungsod, which shall feature
such information and data needed or requested by said traditional sports and disciplines included in national and
sanggunian in the performance of its legislative functions; international games, in coordination with the Department of
Education, Culture and Sports; and
(v) Appoint all officials and employees whose salaries and wages
are wholly or mainly paid out of city funds and whose (xx) Submit to the provincial governor, in the case of component
appointments are not otherwise provided for in this Code, as well cities; to the Office of the President, in the case of highly-
as those he may be authorized by law to appoint; urbanized cities; to their respective metropolitan authority council
chairmen and to the Office of the President, in the case of cities of
(vi) Represent the city in all its business transactions and sign in the Metropolitan Manila Area and other metropolitan political
its behalf all bonds, contracts, and obligations, and such other subdivisions, the following reports: an annual report containing a
documents upon authority of the sangguniang panlungsod or summary of all matters pertinent to the management,
pursuant to law or ordinance; administration and development of the city and all information and
(vii) Carry out such emergency measures as may be necessary data relative to its political, social and economic conditions; and
during and in the aftermath of man-made and natural disasters supplemental reports when unexpected events and situations arise
and calamities; at any time during the year, particularly when man-made or
natural disasters or calamities affect the general welfare of the
(viii) Determine the time, manner and place of payment of salaries city, province, region or country;
or wages of the officials and employees of the city, in accordance
with law or ordinance; (2) Enforce all laws and ordinances relative to the governance of the
city and in the exercise of the appropriate corporate powers provided
(ix) Allocate and assign office space to city and other officials and for under Section 22 of this Code, implement all approved policies,
employees who, by law or ordinance, are entitled to such space in programs, projects, services and activities of the city and, in addition
the city hall and other buildings owned or leased by the city to the foregoing, shall:
government;
(i) Ensure that the acts of the city’s component barangays and of
(x) Ensure that all executive officials and employees of the city its officials and employees are within the scope of their prescribed
faithfully discharge their duties and functions as provided by law powers, duties and functions;
and this Code, and cause to be instituted administrative or judicial
proceedings against any official or employee of the city who may (ii) Call conventions, conferences, seminars, or meetings of any
have committed an offense in the performance of his official elective and appointive officials of the city, including provincial
duties; officials and national officials and employees stationed in or
assigned to the city, at such time and place and on such subject
(xi) Examine the books, records and other documents of all offices, as he may deem important for the promotion of the general
officials, agents or employees of the city and, in aid of his welfare of the local government unit and its inhabitants;
executive powers and authority, require all national officials and
employees stationed in or assigned to the city to make available (iii) Issue such executive orders for the faithful and appropriate
to him such books, records, and other documents in their custody, enforcement and execution of laws and ordinances;
except those classified by law as confidential; (iv) Be entitled to carry the necessary firearm within his territorial
(xii) Furnish copies of executive orders issued by him, to the jurisdiction;
provincial governor in the case of component city mayors, to the
Office of the President in the case of highly-urbanized city mayors,
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 (v) Act as the deputized representative of the National Police (c) During his incumbency, the city mayor shall hold office in the city hall.
Commission, formulate the peace and order plan of the city and
upon its approval, implement the same; and as such exercise (d) The city mayor shall receive a minimum monthly compensation
general and operational control and supervision over the local corresponding to Salary Grade Thirty (30) as prescribed under R.A. No.
police forces in the city, in accordance with R.A. No. 6975; 6758 and the implementing guidelines issued pursuant thereto.

(vi) Call upon the appropriate law enforcement agencies to

suppress disorder, riot, lawless violence, rebellion or sedition, or ARTICLE II
to apprehend violators of the law when public interest so requires The City Vice-Mayor
and the city police forces are inadequate to cope with the
SECTION 456. Powers, Duties and Compensation. – (a)
situations or the violators;
The city vice-mayor shall:
(3) Initiate and maximize the generation of resources and
(1) Be the presiding officer of the sangguniang panlungsod and sign
revenues, and apply the same to the implementation of
all warrants drawn on the city treasury for all expenditures
development plans, program objectives and priorities as provided
appropriated for the operation of the sangguniang panlungsod;
for under Section 18 of this Code, particularly those resources and
revenues programmed for agro-industrial development and (2) Subject to civil service law, rules and regulations, appoint all
countryside growth and progress and, relative thereto, shall: officials and employees of the sangguniang panlungsod, except those
whose manner of appointment is specifically provided in this Code;
(i) Require each head of an office or department to prepare and
submit an estimate of appropriations for the ensuing calendar (3) Assume the office of the city mayor for the unexpired term of the
year, in accordance with the budget preparation process under latter in the event of permanent vacancy as provided for in Section
Title Five, Book II of this Code; 44, Book I of this Code;
(ii) Prepare and submit to the sanggunian for approval the (4) Exercise the powers and perform the duties and functions of the
executive and supplemental budgets of the city for the ensuing city mayor in cases of temporary vacancy as provided for in Section
calendar year in the manner provided for under Title Five, Book II 46, Book I of this Code; and
of this Code;
(5) Exercise such other powers and perform such other duties and
(iii) Ensure that all taxes and other revenues of the city are functions as may be prescribed by law or ordinance.
collected, and that city funds are applied to the payment of
expenses and settlement of obligations of the city, in accordance (b) The city vice-mayor shall receive a monthly compensation
with law or ordinance; corresponding to Salary Grade twenty-eight (28) for a highly urbanized
city and Salary Grade twenty-six (26) for a component city, as prescribed
(iv) Issue licenses and permits and suspend or revoke the same under R.A. No. 6758 and the implementing guidelines issued pursuant
for any violation of the conditions upon which said licenses or thereto.
permits had been issued, pursuant to law or ordinance; ARTICLE III
(v) Issue permits, without need of approval therefor from any The Sangguniang Panlungsod
national agency, for the holding of activities for any charitable or SECTION 457. Composition – (a) The sangguniang
welfare purpose, excluding prohibited games of chance or shows panlungsod, the legislative body of the city, shall be composed of the city
contrary to law, public policy and public morals; vice-mayor as presiding officer, the regular sanggunian members, the
(vi) Require owners of illegally constructed houses, buildings or president of the city chapter of the liga ng mga barangay, the president
other structures to obtain the necessary permit, subject to such of the panlungsod na pederasyon ng mga sangguniang kabataan, and
fines and penalties as may be imposed by law or ordinance, or to the sectoral representatives, as members.
make necessary changes in the construction of the same when (b) In addition thereto, there shall be three (3) sectoral representatives:
said construction violates any law or ordinance, or to order the one (1) from the women; and as shall be determined by the sanggunian
demolition or removal of said house, building or structure within concerned within ninety (90) days prior to the holding of the local
the period prescribed by law or ordinance; elections, one (1) from the agricultural or industrial workers; and one (1)
(vii) Adopt adequate measures to safeguard and conserve land, from the other sectors, including the urban poor, indigenous cultural
mineral, marine, forest, and other resources of the city; communities, or disabled persons.

(viii) Provide efficient and effective property and supply (c) The regular members of the sangguniang panlungsod and the
management in the city; and protect the funds, credits, rights and sectoral representatives shall be elected in the manner as may be
other properties of the city; and provided for by law.

(ix) Institute or cause to be instituted administrative or judicial SECTION 458. Powers, Duties, Functions and
proceedings for violation of ordinances in the collection of taxes, Compensation. – (a) The sangguniang panlungsod, as the legislative
fees or charges, and for the recovery of funds and property; and body of the city, shall enact ordinances, approve resolutions and
cause the city to be defended against all suits to ensure that its appropriate funds for the general welfare of the city and its inhabitants
interests, resources and rights shall be adequately protected; pursuant to Section 16 of this Code and in the proper exercise of the
corporate powers of the city as provided for under Section 22 of this
(4) Ensure the delivery of basic services and the provision of adequate Code, and shall:
facilities as provided for under Section 17 of this Code and, in addition
thereto, shall: (1) Approve ordinances and pass resolutions necessary for an efficient
and effective city government, and in this connection, shall:
(i) Ensure that the construction and repair of roads and highways
funded by the national government shall be, as far as practicable, (i) Review all ordinances approved by the sangguniang barangay
carried out in a spatially contiguous manner and in coordination and executive orders issued by the punong barangay to determine
with the construction and repair of the roads and bridges of the whether these are within the scope of the prescribed powers of
city, and in the case of component cities, of the city and of the the sanggunian and of the punong barangay;
province; and (ii) Maintain peace and order by enacting measures to prevent and
(ii) Coordinate the implementation of technical services, including suppress lawlessness, disorder, riot, violence, rebellion or sedition
public works and infrastructure programs, rendered by national and impose penalties for violation of said ordinances;
offices in the case of highly urbanized and independent component (iii) Approve ordinances imposing a fine not exceeding Five
cities, and by national and provincial offices in the case of thousand pesos (P5,000.00) or an imprisonment for a period not
component cities; and exceeding one (1) year, or both in the discretion of the court, for
(5) Exercise such other powers and perform such other duties and the violation of a city ordinance;
functions as may be prescribed by law or ordinance.
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 (iv) Adopt measures to protect the inhabitants of the city from the charges, prescribing the rates thereof for general and specific
harmful effects of man-made or natural disasters and calamities, purposes, and granting tax exemptions, incentives or reliefs;
and to provide relief services and assistance for victims during and
in the aftermath of said disasters or calamities and their return to (iii) Subject to the provisions of Book II of this Code and upon the
productive livelihood following said events; majority vote of all the members of the sangguniang panlungsod,
authorize the city mayor to negotiate and contract loans and other
(v) Enact ordinances intended to prevent, suppress and impose forms of indebtedness;
appropriate penalties for habitual drunkenness in public places,
vagrancy, mendicancy, prostitution, establishment and (iv) Subject to the provisions of Book II of this Code and applicable
maintenance of houses of ill repute, gambling and other prohibited laws and upon the majority vote of all the members of the
games of chance, fraudulent devices and ways to obtain money or sangguniang panlungsod, enact ordinances authorizing the
property, drug addiction, maintenance of drug dens, drug pushing, floating of bonds or other instruments of indebtedness, for the
juvenile delinquency, the printing, distribution or exhibition of purpose of raising funds to finance development projects;
obscene or pornographic materials or publications, and such other (v) Appropriate funds for the construction and maintenance or the
activities inimical to the welfare and morals of the inhabitants of rental of buildings for the use of the city; and, upon the majority
the city. vote of all the members of the sangguniang panlungsod, authorize
(vi) Protect the environment and impose appropriate penalties for the city mayor to lease to private parties such public buildings held
acts which endanger the environment, such as dynamite fishing in a proprietary capacity, subject to existing laws, rules and
and other forms of destructive fishing, illegal logging and regulations;
smuggling of logs, smuggling of natural resources products and of (vi) Prescribe reasonable limits and restraints on the use of
endangered species of flora and fauna, slash and burn farming, property within the jurisdiction of the city;
and such other activities which result in pollution, acceleration of
eutrophication of rivers and lakes, or of ecological imbalance; (vii) Adopt a comprehensive land use plan for the city: Provided,
That in the case of component cities, the formulation, adoption or
(vii) Subject to the provisions of this Code and pertinent laws, modification of said plan shall be in coordination with the approved
determine the powers and duties of officials and employees of the provincial comprehensive land use plan;
city;
(viii) Reclassify land within the jurisdiction of the city, subject to
(viii) Determine the positions and the salaries, wages, allowances the pertinent provisions of this Code;
and other emoluments and benefits of officials and employees paid
wholly or mainly from city funds and provide for expenditures (ix) Enact integrated zoning ordinances in consonance with the
necessary for the proper conduct of programs, projects, services, approved comprehensive land use plan, subject to existing laws,
and activities of the city government; rules and regulations; establish fire limits or zones, particularly in
populous centers; and regulate the construction, repair or
(ix) Authorize the payment of compensation to a qualified person modification of buildings within said fire limits or zones in
not in the government service who fills up a temporary vacancy or accordance with the provisions of the Fire Code;
grant honorarium to any qualified official or employee designated
to fill a temporary vacancy in a concurrent capacity, at the rate (x) Subject to national law, process and approve subdivision plans
authorized by law; for residential, commercial, or industrial purposes and other
development purposes, and to collect processing fees and other
(x) Provide a mechanism and the appropriate funds therefor, to charges, the proceeds of which shall accrue entirely to the city:
ensure the safety and protection of all city government property, Provided, however, That where approval of a national agency or
public documents, or records such as those relating to property office is required, said approval shall not be withheld for more than
inventory, land ownership, records of births, marriages, deaths, thirty (30) days from receipt of the application. Failure to act on
assessments, taxation, accounts, business permits, and such other the application within the period stated above shall be deemed as
records and documents of public interest in the offices and approval thereof;
departments of the city government;
(xi) Subject to the provisions of Book II of this Code, grant the
(xi) When the finances of the city government allow, provide for exclusive privilege of constructing fish corrals or fish pens, or the
additional allowances and other benefits to judges, prosecutors, taking or catching of bangus fry, prawn fry or kawag-kawag, or fry
public elementary and high school teachers, and other national of any species or fish within the city waters;
government officials stationed in or assigned to the city;
(xii) With the concurrence of at least two-thirds (2/3) of all the
(xii) Provide legal assistance to barangay officials who, in the members of the sangguniang panlungsod, grant tax exemptions,
performance of their official duties or on the occasion thereof, incentives or reliefs to entities engaged in community growth-
have to initiate judicial proceedings or defend themselves against inducing industries, subject to the provisions of Chapter 5, Title I,
legal action; and Book II of this Code;
(xiii) Provide for group insurance or additional insurance coverage (xiii) Grant loans or provide grants to other local government units
for all barangay officials, including members of barangay tanod or to national, provincial, and city charitable, benevolent or
brigades and other service units, with public or private insurance educational institutions: Provided, That, said institutions are
companies, when the finances of the city government allow said operated and maintained within the city;
coverage;
(xiv) Regulate the numbering of residential, commercial and other
(2) Generate and maximize the use of resources and revenues for the buildings; and
development plans, program objectives and priorities of the city as
provided for under Section 18 of this Code, with particular attention to (xv) Regulate the inspection, weighing and measuring of articles
agro-industrial development and city-wide growth and progress, and of commerce.
relative thereto, shall:
(3) Subject to the provisions of Book II of this Code, enact ordinances
(i) Approve the annual and supplemental budgets of the city granting franchises and authorizing the issuance of permits or licenses,
government and appropriate funds for specific programs, projects, upon such conditions and for such purposes intended to promote the
services and activities of the city, or for other purposes not general welfare of the inhabitants of the city and pursuant to this
contrary to law, in order to promote the general welfare of the city legislative authority shall:
and its inhabitants;
(i) Fix and impose reasonable fees and charges for all services
(ii) Subject to the provisions of Book II of this Code and applicable rendered by the city government to private persons or entities;
laws and upon the majority vote of all the members of the
(ii) Regulate or fix license fees for any business or practice of
sangguniang panlungsod, enact ordinances levying taxes, fees and
profession within the city and the conditions under which the

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 license for said business or practice of profession may be revoked (5) Approve ordinances which shall ensure the efficient and effective
and enact ordinances levying taxes thereon; delivery of the basic services and facilities as provided for under
Section 17 of this Code, and in addition to said services and facilities,
(iii) Provide for and set the terms and conditions under which shall:
public utilities owned by the city shall be operated by the city
government, and prescribe the conditions under which the same (i) Provide for the establishment, maintenance, protection, and
may be leased to private persons or entities, preferably conservation of communal forests and watersheds, tree parks,
cooperatives; greenbelts, mangroves, and other similar forest development
projects;
(iv) Regulate the display of and fix the license fees for signs,
signboards, or billboards at the place or places where the (ii) Establish markets, slaughterhouses or animal corrals and
profession or business advertised thereby is, in whole or in part, authorize the operation thereof by the city government; and
conducted; regulate the construction and operation of private markets,
talipapas or other similar buildings and structures;
(v) Any law to the contrary notwithstanding, authorize and license
the establishment, operation, and maintenance of cockpits, and (iii) Authorize the establishment, maintenance and operation by
regulate cockfighting and commercial breeding of gamecocks: the city government of ferries, wharves, and other structures
Provided, That existing rights should not be prejudiced; intended to accelerate productivity related to marine and seashore
or offshore activities;
(vi) Subject to the guidelines prescribed by the Department of
Transportation and Communications, regulate the operation of (iv) Regulate the preparation and sale of meat, poultry, fish,
tricycles and grant franchises for the operation thereof within the vegetables, fruits, fresh dairy products, and other foodstuffs for
territorial jurisdiction of the city; and public consumption;
(vii) Upon approval by a majority vote of all the members of the (v) Regulate the use of streets, avenues, alleys, sidewalks,
sangguniang panlungsod: grant a franchise to any person, bridges, parks and other public places and approve the
partnership, corporation, or cooperative to do business within the construction, improvement, repair and maintenance of the same;
city; establish, construct, operate and maintain ferries, wharves, establish bus and vehicle stops and terminals or regulate the use
markets or slaughterhouses; or undertake such other activities of the same by privately-owned vehicles which serve the public;
within the city as may be allowed by existing laws: Provided, That, regulate garages and the operation of conveyances for hire;
cooperatives shall be given preference in the grant of such designate stands to be occupied by public vehicles when not in
franchise. use; regulate the putting up of signs, signposts, awnings and
awning posts on the streets; and provide for the lighting, cleaning
(4) Regulate activities relative to the use of land, buildings and and sprinkling of streets; and public places;
structures within the city in order to promote the general welfare and
for said purpose shall: (vi) Regulate traffic on all streets and bridges; prohibit
encroachments or obstacles thereon, and when necessary in the
(i) Declare, prevent or abate any nuisance; interest of public welfare, authorize the removal or encroachments
(ii) Require that buildings and the premises thereof and any land and illegal constructions in public places;
within the city be kept and maintained in a sanitary condition; (vii) Subject to existing laws, establish and provide for the
impose penalties for any violation thereof; or, upon failure to maintenance, repair and operation of an efficient waterworks
comply with said requirement, have the work done at the expense system to supply water for the inhabitants and to purify the source
of the owner, administrator or tenant concerned; or require the of the water supply; regulate the construction, maintenance,
filling up of any land or premises to a grade necessary for proper repair and use of hydrants, pumps, cisterns and reservoirs; protect
sanitation; the purity and quantity of the water supply of the city and, for this
(iii) Regulate the disposal of clinical and other wastes from purpose, extend the coverage of appropriate ordinances over all
hospitals, clinics and other similar establishments; territory within the drainage area of said water supply and within
one hundred (100) meters of the reservoir, conduit, canal,
(iv) Regulate the establishment, operation and maintenance of aqueduct, pumping station, or watershed used in connection with
cafes, restaurants, beerhouses, hotels, motels, inns, pension the water service; and regulate the consumption, use or wastage
houses, lodging houses, and other similar establishments, of water and fix and collect charges therefor;
including tourist guides and transports;
(viii) Regulate the drilling and excavation of the ground for the
(v) Regulate the sale, giving away or dispensing of any intoxicating laying of water, gas, sewer, and other pipes and the construction,
malt, vino, mixed or fermented liquors at any retail outlet; repair and maintenance of public drains, sewers, cesspools,
tunnels and similar structures; regulate the placing of poles and
(vi) Regulate the establishment and provide for the inspection of
the use of crosswalks, curbs, and gutters; adopt measures to
steam boilers or any heating device in buildings and the storage
ensure public safety against open canals, manholes, live wires and
of inflammable and highly combustible materials within the city;
other similar hazards to life and property; and regulate the
(vii) Regulate the establishment, operation, and maintenance of construction and use of private water closets, privies and other
any entertainment or amusement facilities, including theatrical similar structures in buildings and homes;
performances, circuses, billiard pools, public dancing schools,
(ix) Regulate the placing, stringing, attaching, installing, repair and
public dance halls, sauna baths, massage parlors, and other places
construction of all gas mains, electric, telegraph and telephone
for entertainment or amusement; regulate such other events or
wires, conduits, meters and other apparatus; and provide for the
activities for amusement or entertainment, particularly those
correction, condemnation or removal of the same when found to
which tend to disturb the community or annoy the inhabitants, or
be dangerous, defective, or otherwise hazardous to the welfare of
require the suspension or suppression of the same; or prohibit
the inhabitants;
certain forms of amusement or entertainment in order to protect
the social and moral welfare of the community; (x) Subject to the availability of funds and to existing laws, rules
and regulations, establish and provide for the operation of
(viii) Provide for the impounding of stray animals; regulate the
vocational and technical schools and similar post-secondary
keeping of animals in homes or as part of a business, and the
institutions and, with the approval of the Department of Education,
slaughter, sale or disposition of the same; and adopt measures to
Culture and Sports and subject to existing law on tuition fees, fix
prevent and penalize cruelty to animals; and
and collect reasonable tuition fees and other school charges in
(ix) Regulate the establishment, operation and maintenance of educational institutions supported by the city government;
funeral parlors and the burial or cremation of the dead, subject to
(xi) Establish a scholarship fund for poor but deserving students in
existing laws, rules and regulations.
schools located within its jurisdiction or for students residing within
the city;
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 (xii) Approve measures and adopt quarantine regulations to (b) The territory need not be contiguous if it comprises two (2) or more
prevent the introduction and spread of diseases; islands or is separated by a chartered city or cities which do not
contribute to the income of the province.
(xiii) Provide for an efficient and effective system of solid waste
and garbage collection and disposal; prohibit littering and the (c) The average annual income shall include the income accruing to the
placing or throwing of garbage, refuse and other filth and wastes; general fund, exclusive of special funds, trust funds, transfers and non-
recurring income.
(xiv) Provide for the care of disabled persons, paupers, the aged,
the sick, persons of unsound mind, abandoned minors, juvenile SECTION 462. Existing Sub-Provinces. – Existing sub-
delinquents, drug dependents, abused children and other needy provinces are hereby converted into regular provinces upon approval by
and disadvantaged persons, particularly children and youth below a majority of the votes cast in a plebiscite to be held in the said
eighteen (18) years of age; and subject to availability of funds, subprovinces and the original provinces directly affected. The plebiscite
establish and provide for the operation of centers and facilities for shall be conducted by the COMELEC simultaneously with the national
said needy and disadvantaged persons; elections following the effectivity of this Code.
(xv) Establish and provide for the maintenance and improvement The new legislative districts created as a result of such conversion shall
of jails and detention centers, institute a sound jail management continue to be represented in Congress by the duly-elected
program, and appropriate funds for the subsistence of detainees representatives of the original districts out of which said new provinces
and convicted prisoners in the city; or districts were created until their own representatives shall have been
elected in the next regular congressional elections and qualified.
(xvi) Establish a city council whose purpose is the promotion of
culture and the arts, coordinate with government agencies and The incumbent elected officials of the said subprovinces converted into
non-governmental organizations and, subject to the availability of regular provinces shall continue to hold office until June 30, 1992. Any
funds, appropriate funds for the support and development of the vacancy occurring in the offices occupied by said incumbent elected
same; and officials, or resulting from expiration of their terms of office in case of a
negative vote in the plebiscite results, shall be filled by appointment by
(xvii) Establish a city council for the elderly which shall formulate the President. The appointees shall hold office until their successors shall
policies and adopt measures mutually beneficial to the elderly and have been elected in the regular local elections following the plebiscite
to the community; provide incentives for non-governmental mentioned herein and qualified. After effectivity of such conversion, the
agencies and entities and, subject to the availability of funds, President shall fill up the position of governor of the newly-created
appropriate funds to support programs and projects for the benefit province through appointment if none has yet been appointed to the
of the elderly; and same as hereinbefore provided, and shall also appoint a vice-governor
(6) Exercise such other powers and perform such other duties and and the other members of the sangguniang panlalawigan, all of whom
functions as may be prescribed by law or ordinance. shall likewise hold office until their successors shall have been elected in
the next regular local elections and qualified.
(b) The members of the sangguniang panlungsod of component cities
shall receive a minimum monthly compensation corresponding to Salary All qualified appointive officials and employees in the career service of
Grade twenty-five (25) and members of the sangguniang panlungsod of the said subprovinces at the time of their conversion into regular
highly-urbanized cities shall receive a minimum monthly compensation provinces shall continue in office in accordance with civil service law,
corresponding to Salary Grade twenty-seven (27), as prescribed under rules and regulations.
Republic Act No. 6758 and the implementing guidelines issued pursuant
thereto.
CHAPTER II
Provincial Officials in General
TITLE IV
SECTION 463. Officials of the Provincial Government. –
The Province (a) There shall be in each province a governor, a vice-governor, members
CHAPTER I of the sangguniang panlalawigan, a secretary to the sangguniang
Role and Creation of the Province panlalawigan, a provincial treasurer, a provincial assessor, a provincial
accountant, a provincial engineer, a provincial budget officer, a provincial
SECTION 459. Role of the Province. – The province,
planning and development coordinator, a provincial legal officer, a
composed of a cluster of municipalities, or municipalities and component
provincial administrator, a provincial health officer, a provincial social
cities, and as a political and corporate unit of government, serves as
welfare and development officer, a provincial general services officer, a
dynamic mechanism for developmental processes and effective
provincial agriculturist, and a provincial veterinarian.
governance of local government units within its territorial jurisdiction.
(b) In addition thereto, the governor may appoint a provincial population
SECTION 460. Manner of Creation. – A province may be
officer, a provincial natural resources and environment officer, a
created, divided, merged, abolished, or its boundary substantially
provincial cooperative officer, a provincial architect, and a provincial
altered, only by an Act of Congress and subject to approval by a majority
information officer.
of the votes cast in a plebiscite to be conducted by the COMELEC in the
local government unit or units directly affected. The plebiscite shall be The appointment of a provincial population officer shall be optional in the
held within one hundred twenty (120) days from the date of effectivity province: Provided, however, That provinces which have existing
of said Act, unless otherwise provided therein. population offices shall continue to maintain such offices for a period of
five (5) years from the date of the effectivity of this Code, after which
SECTION 461. Requisites for Creation. – (a) A province
said offices shall become optional.
may be created if it has an average annual income, as certified by the
Department of Finance, of not less than Twenty million pesos (c) The sangguniang panlalawigan may:
(P20,000,000.00) based on 1991 constant prices and either of the
following requisites: (1) Maintain existing offices not mentioned in subsections (a) and (b)
hereof;
(i) a contiguous territory of at least two thousand (2,000) square
kilometers, as certified by the Lands Management Bureau; or (2) Create such other offices as may be necessary to carry out the
purposes of the provincial government; or
(ii) a population of not less than two hundred fifty thousand (250,000)
inhabitants as certified by the National Statistics Office: (3) Consolidate the functions of any office with those of another in
the interest of efficiency and economy;
Provided, That, the creation thereof shall not reduce the land area,
population, and income of the original unit or units at the time of said (d) Unless otherwise provided herein, heads of departments and offices
creation to less than the minimum requirements prescribed herein. shall be appointed by the governor with the concurrence of the majority
of all the sangguniang panlalawigan members, subject to civil service
law, rules and regulations. The sangguniang panlalawigan shall act on

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the appointment within fifteen (15) days from the date of its submission; (x) Ensure that all executive officials and employees of the
otherwise the same shall be deemed confirmed; province faithfully discharge their duties and functions as provided
by law and this Code, and cause to be instituted administrative or
(e) Elective and appointive provincial officials shall receive such judicial proceedings against any official or employee of the
compensation, allowances, and other emoluments as may be determined province who may have committed an offense in the performance
by law or ordinance, subject to the budgetary limitations on personal of his official duties;
services prescribed under Title Five, Book II of this Code: Provided, That
no increase in compensation shall take effect until after the expiration of (xi) Examine the books, records and other documents of all offices,
the full term of all the elective officials approving such increase. officials, agents or employees of the province and, in aid of his
executive powers and authority, require all national officials and
SECTION 464. Residence and Office. – During the employees stationed in the province to make available to him such
incumbency of the governor, he shall have his official residence in the books, records, and other documents in their custody, except
capital of the province. All elective and appointive provincial officials shall those classified by law as confidential;
hold office in the provincial capital: Provided, That, upon resolution of
the sangguniang panlalawigan, elective and appointive provincial officials (xii) Furnish copies of executive orders issued by him to the Office
may hold office in any component city or municipality within the province of the President within seventy-two (72) hours after their
for a period of not more than seven (7) days for any given month. issuance;
(xiii) Visit component cities and municipalities of the province at
CHAPTER III least once every six (6) months to deepen his understanding of
Officials and Offices Common to All Provinces problems and conditions, listen and give appropriate counsel to
ARTICLE I local officials and inhabitants, inform the officials and inhabitants
of component cities and municipalities of general laws and
The Provincial Governor
ordinances which especially concern them, and otherwise conduct
SECTION 465. The Chief Executive: Powers, Duties, visits and inspections to ensure that the governance of the
Functions, and Compensation. – (a) The provincial governor, as the province will improve the quality of life of the inhabitants;
chief executive of the provincial government, shall exercise such powers
and perform such duties and functions as provided by this Code and (xiv) Act on leave applications of officials and employees appointed
by him and the commutation of the monetary value of leave credits
other laws.
in accordance with law;
(b) For efficient, effective and economical governance the purpose of
which is the general welfare of the province and its inhabitants pursuant (xv) Authorize official trips of provincial officials and employees
to Section 16 of this Code, the provincial governor shall: outside of the province for a period not exceeding thirty (30) days;
(xvi) Call upon any national official or employee stationed in or
(1) Exercise general supervision and control over all programs,
projects, services, and activities of the provincial government, and in assigned to the province to advise him on matters affecting the
province and to make recommendations thereon; coordinate with
this connection, shall:
said official or employee in the formulation and implementation of
(i) Determine the guidelines of provincial policies and be plans, programs and projects; and when appropriate, initiate an
responsible to the sangguniang panlalawigan for the program of administrative or judicial action against a national government
government; official or employee who may have committed an offense in the
performance of his official duties while stationed in or assigned to
(ii) Direct the formulation of the provincial development plan, with the province;
the assistance of the provincial development council, and upon
approval thereof by the sangguniang panlalawigan, implement the (xvii) Authorize payment for medical care, necessary
same; transportation, subsistence, hospital or medical fees of provincial
officials and employees who are injured while in the performance
(iii) Present the program of government and propose policies and of their official duties and functions, subject to availability of funds;
projects for the consideration of the sangguniang panlalawigan at
the opening of the regular session of the sangguniang (xviii) Represent the province in inter-provincial or regional sports
panlalawigan every calendar year and as often as may be deemed councils or committees, and coordinate the efforts of component
necessary as the general welfare of the inhabitants and the needs cities or municipalities in the regional or national palaro or sports
of the provincial government may require; development activities;
(iv) Initiate and propose legislative measures to the sangguniang (xix) Conduct an annual palarong panlalawigan, which shall
panlalawigan and as often as may be deemed necessary, provide feature traditional sports and disciplines included in national and
such information and data needed or requested by said international games in coordination with the Department of
sanggunian in the performance of its legislative functions; Education, Culture and Sports; and
(v) Appoint all officials and employees whose salaries and wages (xx) Submit to the Office of the President the following reports: an
are wholly or mainly paid out of provincial funds and whose annual report containing a summary of all matters pertinent to the
appointments are not otherwise provided for in this Code, as well management, administration and development of the province and
as those he may be authorized by law to appoint; all information and data relative to its political, social and economic
conditions; and supplemental reports when unexpected events
(vi) Represent the province in all its business transactions and sign and situations arise at any time during the year, particularly when
in its behalf all bonds, contracts, and obligations, and such other man-made or natural disasters or calamities affect the general
documents upon authority of the sangguniang panlalawigan or welfare of the province, region or country;
pursuant to law or ordinance;
(2) Enforce all laws and ordinances relative to the governance of the
(vii) Carry out such emergency measures as may be necessary province and the exercise of the appropriate corporate powers
during and in the aftermath of man-made and natural disasters provided for under Section 22 of this Code, implement all approved
and calamities; policies, programs, projects, services and activities of the province
(viii) Determine the time, manner and place of payment of salaries and, in addition to the foregoing, shall:
or wages of the officials and employees of the province, in (i) Ensure that the acts of the component cities and municipalities
accordance with law or ordinance; of the province and of its officials and employees are within the
(ix) Allocate and assign office space to provincial and other officials scope of their prescribed powers, duties and functions;
and employees who, by law or ordinance, are entitled to such (ii) Call conventions, conferences, seminars, or meetings of any
space in the provincial capitol and other buildings owned or leased elective and appointive officials of the province and its component
by the provincial government; cities and municipalities, including national officials and employees
stationed in or assigned to the province, at such time and place
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 and on such subject as he may deem important for the promotion (c) The provincial governor shall receive a minimum monthly
of the general welfare of the province and its inhabitants; compensation corresponding to Salary Grade thirty (30) prescribed under
R.A. No. 6758 and the implementing guidelines issued pursuant thereto.
(iii) Issue such executive orders for the faithful and appropriate
enforcement and execution of laws and ordinances;
ARTICLE II
(iv) Be entitled to carry the necessary firearm within his territorial
jurisdiction; The Provincial Vice-Governor

(v) In coordination with the mayors of component cities and SECTION 466. Powers, Duties, and Compensation. – (a)
municipalities and the National Police Commission, formulate the The vice-governor shall:
peace and order plan of the province and upon its approval, (1) Be the presiding officer of the sangguniang panlalawigan and
implement the same in accordance with R.A. No. 6975; sign all warrants drawn on the provincial treasury for all
expenditures appropriated for the operation of the sangguniang
(vi) Call upon the appropriate national law enforcement agencies
to suppress disorder, riot, lawless violence, rebellion or sedition or panlalawigan;
to apprehend violators of the law when public interest so requires (2) Subject to civil service law, rules and regulations, appoint all
and the police forces of the component city or municipality where officials and employees of the sangguniang panlalawigan, except
the disorder or violation is happening are inadequate to cope with those whose manner of appointment is specially provided in this
the situation or the violators; Code;
(3) Initiate and maximize the generation of resources and revenues, (3) Assume the office of the governor for the unexpired term of
and apply the same to the implementation of development plans, the latter in the event of permanent vacancy as provided for in
program objectives and priorities as provided for under Section 18 of Section 44, Book I of this Code;
this Code, particularly those resources and revenues programmed for
agro-industrial development and country-wide growth and progress (4) Exercise the powers and perform the duties and functions of
and, relative thereto, shall: the governor in cases of temporary vacancy as provided for in
Section 46, Book I of this Code; and
(i) Require each head of an office or department to prepare and
submit an estimate of appropriations for the ensuing calendar (5) Exercise such other powers and perform such other duties and
year, in accordance with the budget preparation process under functions as may be prescribed by law or ordinance.
Title Five, Book II of this Code;
(b) The vice-governor shall receive a monthly compensation
(ii) Prepare and submit to the sanggunian for approval the corresponding to Salary Grade twenty-eight (28) as prescribed under
executive and supplemental budgets of the province for the R.A. No. 6758 and the implementing guidelines issued pursuant thereto.
ensuing calendar year in the manner provided for under Title Five,
Book II of this Code;
ARTICLE III
(iii) Ensure that all taxes and other revenues of the province are The Sangguniang Panlalawigan
collected, and that provincial funds are applied to the payment of
expenses and settlement of obligations of the province, in SECTION 467. Composition. – (a) The sangguniang
accordance with law or ordinance; panlalawigan, the legislative body of the province, shall be composed of
the provincial vice-governor as presiding officer, the regular sanggunian
(iv) Issue licenses and permits and suspend or revoke the same members, the president of the provincial chapter of the liga ng mga
for any violation of the conditions upon which said licenses or barangay, the president of the panlalawigang pederasyon ng mga
permits had been issued, pursuant to law or ordinance; sangguniang kabataan, the president of the provincial federation of
sanggunian members of municipalities and component cities, and the
(v) Adopt adequate measures to safeguard and conserve land,
sectoral representatives, as members.
mineral, marine, forest and other resources of the province, in
coordination with the mayors of component cities and (b) In addition thereto, there shall be three (3) sectoral representatives:
municipalities; one (1) from the women; and as shall be determined by the sanggunian
concerned within ninety (90) days prior to the holding of the local
(vi) Provide efficient and effective property and supply elections, one (1) from the agricultural or industrial workers; and one (1)
management in the province; and protect the funds, credits, from other sectors including the urban poor, indigenous cultural
rights, and other properties of the province; and communities, or disabled persons.
(vii) Institute or cause to be instituted administrative or judicial (c) The regular members of the sangguniang panlalawigan and the
proceedings for violation of ordinances in the collection of taxes, sectoral representatives shall be elected in the manner as may be
fees or charges, and for the recovery of funds and property, and
provided for by law.
cause the province to be defended against all suits to ensure that
its interests, resources and rights shall be adequately protected. SECTION 468. Powers, Duties, Functions and
Compensation. – (a) The sangguniang panlalawigan, as the legislative
(4) Ensure the delivery of basic services and the provision of adequate body of the province, shall enact ordinances, approve resolutions and
facilities as provided for under Section 17 of this Code, and in addition
appropriate funds for the general welfare of the province and its
thereto, shall: inhabitants pursuant to Section 16 of this Code in the proper exercise of
(i) Ensure that the construction and repair of roads and highways the corporate powers of the province as provided for under Section 22
funded by the national government shall be, as far as practicable, of this Code, and shall:
carried out in a spatially contiguous manner and in coordination
(1) Approve ordinances and pass resolutions necessary for an efficient
with the construction and repair of the roads and bridges of the
and effective provincial government and, in this connection, shall:
province and of its component cities and municipalities; and
(i) Review all ordinances approved by the sanggunians of
(ii) Coordinate the implementation of technical services by national component cities and municipalities and executive orders issued
offices for the province and its component cities and
by the mayors of said component units to determine whether
municipalities, including public works and infrastructure programs these are within the scope of the prescribed powers of the
of the provincial government and its component cities and
sanggunian and of the mayor;
municipalities;
(ii) Maintain peace and order by enacting measures to prevent and
(5) Exercise such other powers and perform such other duties and suppress lawlessness, disorder, riot, violence, rebellion or sedition
functions as may be prescribed by law or ordinance. and impose penalties for the violation of said ordinances;
(iii) Approve ordinances imposing a fine not exceeding Five
thousand pesos (P5,000.00) or imprisonment not exceeding one
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 (1) year, or both in the discretion of the court, for the violation of (iv) Subject to the provisions of Book II of this Code and applicable
a provincial ordinance; laws and upon the majority vote of all the members of the
sangguniang panlalawigan, enact ordinances authorizing the
(iv) Adopt measures to protect the inhabitants of the province from floating of bonds or other instruments of indebtedness, for the
harmful effects of man-made or natural disasters and calamities, purpose of raising funds to finance development projects;
and to provide relief services and assistance for victims during and
in the aftermath of said disasters and calamities and in their return (v) Appropriate funds for the construction and maintenance or the
to productive livelihood following said events; rental of buildings for the use of the province; and upon the
majority vote of all the members of the sangguniang panlalawigan,
(v) Enact ordinances intended to prevent, suppress and impose authorize the provincial governor to lease to private parties such
appropriate penalties for habitual drunkenness in public places, public buildings held in a proprietary capacity, subject to existing
vagrancy, mendicancy, prostitution, establishment and laws, rules and regulations;
maintenance of houses of ill repute, gambling and other prohibited
games of chance, fraudulent devices and ways to obtain money or (vi) Prescribe reasonable limits and restraints on the use of
property, drug addiction, maintenance of drug dens, drug pushing, property within the jurisdiction of the province;
juvenile delinquency, the printing, distribution or exhibition of
obscene or pornographic materials or publications, and other (vii) Review the comprehensive land use plans and zoning
activities inimical to the welfare and morals of the inhabitants of ordinances of component cities and municipalities and adopt a
the province; comprehensive provincial land use plan, subject to existing laws;
and
(vi) Protect the environment and impose appropriate penalties for
acts which endanger the environment, such as dynamite fishing (3) Adopt measures to enhance the full implementation of the
and other forms of destructive fishing, illegal logging and national agrarian reform program in coordination with the
smuggling of logs, smuggling of natural resources products and of Department of Agrarian Reform;
endangered species of flora and fauna, slash and burn farming, (4) Subject to the provisions of Book II of this Code, grant franchises,
and such other activities which result in pollution, acceleration of approve the issuance of permits or licenses, or enact ordinances
eutrophication of rivers and lakes, or of ecological imbalance; levying taxes, fees and charges upon such conditions and for such
(vii) Subject to the provisions of this Code and pertinent laws, purposes intended to promote the general welfare of the inhabitants
determine the powers and duties of officials and employees of the of the province, and pursuant to this legislative authority, shall:
province; (i) Fix and impose reasonable fees and charges for all services
(viii) Determine the positions and the salaries, wages, allowances rendered by the provincial government to private persons or
and other emoluments and benefits of officials and employees paid entities; and
wholly or mainly from provincial funds and provide for (ii) Regulate and fix the license fees for such activities as provided
expenditures necessary for the proper conduct of programs, for under this Code.
projects, services, and activities of the provincial government;
(5) Approve ordinances which shall ensure the efficient and effective
(ix) Authorize the payment of compensation to a qualified person delivery of basic services and facilities as provided for under Section
not in the government service who fills up a temporary vacancy, 17 of this Code, and, in addition to said services and facilities, shall:
or grant honorarium to any qualified official or employee
designated to fill a temporary vacancy in a concurrent capacity, at (i) Adopt measures and safeguards against pollution and for the
the rate authorized by law; preservation of the natural ecosystem in the province, in
consonance with approved standards on human settlements and
(x) Provide a mechanism and the appropriate funds therefor, to environmental sanitation;
ensure the safety and protection of all provincial government
property, public documents, or records such as those relating to (ii) Subject to applicable laws, facilitate or provide for the
property inventory, land ownership, records of births, marriages, establishment and maintenance of a waterworks system or district
deaths, assessments, taxation, accounts, business permits, and waterworks for supplying water to inhabitants of component cities
such other records and documents of public interest in the offices and municipalities;
and departments of the provincial government; and
(iii) Subject to the availability of funds and to existing laws, rules
(xi) When the finances of the provincial government allow, provide and regulations, provide for the establishment and operation of
for additional allowances and other benefits to judges, vocational and technical schools and similar post-secondary
prosecutors, public elementary and high school teachers, and institutions; and, with the approval of the Department of
other national government officials stationed or assigned to the Education, Culture and Sports and subject to existing laws on
province. tuition fees, fix reasonable tuition fees and other school charges
in educational institutions supported by the provincial
(2) Generate and maximize the use of resources and revenues for the government;
development plans, program objectives and priorities of the province
as provided for under Section 18 of this Code, with particular attention (iv) Establish a scholarship fund for the poor but deserving
to agro-industrial development and country-wide growth and students in schools located within its jurisdiction or for students
progress and relative thereto, shall: residing within the province;

(i) Enact the annual and supplemental appropriations of the (v) Approve measures and adopt quarantine regulations to prevent
provincial government and appropriate funds for specific the introduction and spread of diseases within its territorial
programs, projects, services and activities of the province, or for jurisdiction;
other purposes not contrary to law, in order to promote the
(vi) Provide for the care of paupers, the aged, the sick, persons of
general welfare of the province and its inhabitants;
unsound mind, abandoned minors, abused children, disabled
(ii) Subject to the provisions of Book II of this Code and applicable persons, juvenile delinquents, drug dependents, and other needy
laws and upon the majority vote of all the members of the and disadvantaged persons, particularly children and youth below
sangguniang panlalawigan, enact ordinances levying taxes, fees eighteen (18) years of age; subject to availability of funds,
and charges, prescribing the rates thereof for general and specific establish and support the operation of centers and facilities for
purposes, and granting tax exemptions, incentives or reliefs; said needy and disadvantaged persons; and facilitate efforts to
promote the welfare of families below the poverty threshold, the
(iii) Subject to the provisions of Book II of this Code and applicable disadvantaged, and the exploited;
laws and upon the majority vote of all the members of the
sangguniang panlalawigan, authorize the provincial governor to (vii) Establish and provide the maintenance and improvement of
negotiate and contract loans and other forms of indebtedness; jails and detention centers, institute a sound jail management
program, and appropriate funds for the subsistence of detainees
and convicted prisoners in the province;
Page | 65
 (viii) Establish a provincial council whose purpose is the promotion (d) Exercise such other powers and perform such other duties and
of culture and the arts, coordinate with government agencies and functions as may be prescribed by law or ordinance relative to his
non-governmental organizations and, subject to the availability of position.
funds, appropriate funds for the support and development of the
same;
ARTICLE II
(ix) Establish a provincial council for the elderly which shall The Treasurer
formulate policies and adopt measures mutually beneficial to the
elderly and to the province; and subject to the availability of funds, SECTION 470. Appointment, Qualifications, Powers,
appropriate funds to support programs and projects for the and Duties. – (a) The treasurer shall be appointed by the Secretary of
elderly; and provide incentives for non-governmental agencies and Finance from a list of at least three (3) ranking eligible recommendees
entities to support the programs and projects of the elderly; and of the governor or mayor, as the case may be, subject to civil service
law, rules and regulations.
(x) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance. (b) The treasurer shall be under the administrative supervision of the
governor or mayor, as the case may be, to whom he shall report regularly
(b) The members of the sangguniang panlalawigan shall receive a on the tax collection efforts in the local government unit;
minimum monthly compensation corresponding to Salary Grade twenty-
seven (27) as prescribed under R.A. No. 6758 and the implementing (c) No person shall be appointed treasurer unless he is a citizen of the
guidelines issued pursuant thereto. Philippines, a resident of the local government unit concerned, of good
moral character, a holder of a college degree preferably in commerce,
public administration or law from a recognized college or university, and
TITLE V a first grade civil service eligible or its equivalent. He must have acquired
Appointive Local Officials Common to All Municipalities, Cities experience in treasury or accounting service for at least five (5) years in
and Provinces the case of the provincial or city treasurer, and three (3) years in the
ARTICLE I case of municipal treasurer.
Secretary to the Sanggunian The appointment of a treasurer shall be mandatory for provincial, city
SECTION 469. Qualifications, Powers and Duties. – (a) and municipal governments;
There shall be a secretary to the sanggunian who shall be a career official (d) The treasurer shall take charge of the treasury office, perform the
with the rank and salary equal to a head of department or office. duties provided for under Book II of this Code, and shall:
(b) No person shall be appointed secretary to the sanggunian unless he (1) Advise the governor or mayor, as the case may be, the
is a citizen of the Philippines, a resident of the local government unit sanggunian, and other local government and national officials
concerned, of good moral character, a holder of a college degree
concerned regarding disposition of local government funds, and on
preferably in law, commerce or public administration from a recognized
such other matters relative to public finance;
college or university, and a first grade civil service eligible or its
equivalent. (2) Take custody and exercise proper management of the funds of
the local government unit concerned;
The appointment of a secretary to the sanggunian is mandatory for
provincial, city and municipal governments. (3) Take charge of the disbursement of all local government funds
and such other funds the custody of which may be entrusted to him
(c) The secretary to the sanggunian shall take charge of the office of the
by law or other competent authority;
secretary to the sanggunian and shall:
(4) Inspect private commercial and industrial establishments within
(1) Attend meetings of the sanggunian and keep a journal of its the jurisdiction of the local government unit concerned in relation to
proceedings; the implementation of tax ordinances, pursuant to the provisions
(2) Keep the seal of the local government unit and affix the same with under Book II of this Code;
his signature to all ordinances, resolutions, and other official acts of (5) Maintain and update the tax information system of the local
the sanggunian and present the same to the presiding officer for his
government unit;
signature;
(6) In the case of the provincial treasurer, exercise technical
(3) Forward to the governor or mayor, as the case may be, for supervision over all treasury offices of component cities and
approval, copies of ordinances enacted by the sanggunian and duly
municipalities; and
certified by the presiding officer, in the manner provided in Section
54 under Book I of this Code; (e) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
(4) Forward to the sanggunian panlungsod or bayan concerned, in
the case of the sangguniang barangay, and to the sangguniang SECTION 471. Assistant Treasurer. – (a) An assistant
panlalawigan concerned, in the case of the sangguniang panlungsod treasurer may be appointed by the Secretary of Finance from a list of at
of component cities or sangguniang bayan, copies of duly approved least three (3) ranking, eligible recommendees of the governor or mayor,
ordinances, in the manner provided in Sections 56 and 57 under Book subject to civil service law, rules and regulations.
I of this Code;
(b) No person shall be appointed assistant treasurer unless he is a citizen
(5) Furnish, upon request of any interested party, certified copies of of the Philippines, a resident of the local government unit concerned, of
records of public character in his custody, upon payment to the good moral character, a holder of a college degree preferably in
treasurer of such fees as may be prescribed by ordinance; commerce, public administration, or law from a recognized college or
university, and a first grade civil service eligible or its equivalent. He must
(6) Record in a book kept for the purpose, all ordinances and have acquired at least five (5) years experience in the treasury or
resolutions enacted or adopted by the sanggunian, with the dates of accounting service in the case of the provincial or city assistant treasurer,
passage and publication thereof; and three (3) years in the case of municipal assistant treasurer.
(7) Keep his office and all non-confidential records therein open to The appointment of an assistant treasurer shall be optional for provincial,
the public during the usual business hours; city and municipal governments;
(8) Translate into the dialect used by the majority of the inhabitants (c) The assistant treasurer shall assist the treasurer and perform such
all ordinances and resolutions immediately after their approval, and duties as the latter may assign to him. He shall have authority to
cause the publication of the same together with the original version
administer oaths concerning notices and notifications to those delinquent
in the manner provided under this Code; and in the payment of real property tax and concerning official matters
(9) Take custody of the local archives and, where applicable, the local relating to the accounts of the treasurer or otherwise arising in the offices
library and annually account for the same; and of the treasurer and the assessor.
Page | 66
 ARTICLE III character, a holder of a college degree preferably in civil or mechanical
The Assessor engineering, commerce, or any related course from a recognized college
or university, and a first grade civil service eligible or its equivalent. He
SECTION 472. Qualifications, Powers and Duties. – (a) must have acquired experience in assessment or in any related field for
No person shall be appointed assessor unless he is a citizen of the at least three (3) years in the case of the provincial or city assistant
Philippines, a resident of the local government unit concerned, of good assessor, and one (1) year in the case of the city or provincial assistant
moral character, a holder of a college degree preferably in civil or assessor.
mechanical engineering, commerce, or any other related course from a
recognized college or university, and a first grade civil service eligible or The appointment of an assistant assessor is optional for provincial, city
its equivalent. He must have acquired experience in real property and municipal governments.i
assessment work or in any related field for at least five (5) years in the
(b) The assistant assessor shall assist the assessor and perform such
case of the city or provincial assessor, and three (3) years in the case of
other duties as the latter may assign to him. He shall have the authority
the municipal assessor.
to administer oaths on all declarations of real property for purposes of
The appointment of an assessor shall be mandatory for provincial, city assessments.
and municipal governments.
(b) The assessor shall take charge of the assessor’s office, perform the ARTICLE IV
duties provided under Book II of this Code, and shall: The Accountant
(1) Ensure that all laws and policies governing the appraisal and SECTION 474. Qualifications, Powers and Duties. – (a)
assessment of real properties for taxation purposes are properly No person shall be appointed accountant unless he is a citizen of the
executed; Philippines, a resident of the local government unit concerned, of good
moral character, and a a certified public accountant. He must have
(2) Initiate, review, and recommend changes in policies and
acquired experience in the treasury or accounting service for at least five
objectives, plans and programs, techniques, procedures and practices
(5) years in the case of the provincial or city accountant, and three (3)
in the valuation and assessment of real properties for taxation
years in the case of the municipal accountant.
purposes;
The appointment of an accountant is mandatory for the provincial, city
(3) Establish a systematic method of real property assessment;
and municipal governments.
(4) Install and maintain a real property identification and accounting
(b) The accountant shall take charge of both the accounting and internal
system;
audit services of the local government unit concerned and shall:
(5) Prepare, install and maintain a system of tax mapping, showing
(1) Install and maintain an internal audit system in the local
graphically all properties subject to assessment and gather all data
government unit concerned;
concerning the same;
(2) Prepare and submit financial statements to the governor or mayor,
(6) Conduct frequent physical surveys to verify and determine
as the case may be, and to the sanggunian concerned;
whether all real properties within the province are properly listed in
the assessment rolls; (3) Appraise the sanggunian and other local government officials on
the financial condition and operations of the local government unit
(7) Exercise the functions of appraisal and assessment primarily for
concerned;
taxation purposes of all real properties in the local government unit
concerned; (4) Certify to the availability of budgetary allotment to which
expenditures and obligations may be properly charged;
(8) Prepare a schedule of the fair market value for the different
classes of real properties, in accordance with Title Two, Book II of (5) Review supporting documents before preparation of vouchers to
this Code; determine completeness of requirements;
(9) Issue, upon request of any interested party, certified copies of (6) Prepare statements of cash advances, liquidation, salaries,
assessment records of real property and all other records relative to allowances, reimbursements and remittances pertaining to the local
its assessment, upon payment of a service charge or fee to the government unit;
treasurer;
(7) Prepare statements of journal vouchers and liquidation of the
(10) Submit every semester a report of all assessments, as well as same and other adjustments related thereto;
cancellations and modifications of assessments to the local chief
executive and the sanggunian concerned; (8) Post individual disbursements to the subsidiary ledger and index
cards;
(11) In the case of the assessor of a component city or municipality
attend, personally or through an authorized representative, all (9) Maintain individual ledgers for officials and employees of the local
sessions of the local Board of Assessment Appeals whenever his government unit pertaining to payrolls and deductions;
assessment is the subject of the appeal, and present or submit any (10) Record and post in index cards details of purchased furniture,
information or record in his possession as may be required by the fixtures, and equipment, including disposal thereof, if any;
Board; and
(11) Account for all issued requests for obligations and maintain and
(12) In the case of the provincial assessor, exercise technical keep all records and reports related thereto;
supervision and visitorial functions over all component city and
municipal assessors, coordinate with component city or municipal (12) Prepare journals and the analysis of obligations and maintain and
assessors in the conduct of tax mapping operations and all other keep all records and reports related thereto; and
assessment activities, and provide all forms of assistance therefor:
Provided, however, That, upon full provision by the component city (13) Exercise such other powers and perform such other duties and
or municipality concerned to its assessor’s office of the minimum functions as may be provided by law or ordinance.
personnel, equipment, and funding requirements as may be (c) The incumbent chief accountant in the office of the treasurer shall be
prescribed by the Secretary of Finance, such functions shall be given preference in the appointment to the position of accountant.
delegated to the said city or municipal assessor; and
(c) Exercise such other powers and perform such other duties and ARTICLE V
functions as may be prescribed by law or ordinance.
The Budget Officer
SECTION 473. Assistant Assessor. – (a) No person shall
SECTION 475. Qualifications, Powers and Duties. – (a)
be appointed assistant assessor unless he is a citizen of the Philippines,
No person shall be appointed budget officer unless he is a citizen of the
a resident of the local government unit concerned, of good moral Philippines, a resident of the local government unit concerned, of good
Page | 67
moral character, a holder of a college degree preferably in accounting, (5) Prepare comprehensive plans and other development planning
economics, public administration or any related course from a recognized documents for the consideration of the local development council;
college or university, and a first grade civil service eligible or its
equivalent. He must have acquired experience in government budgeting (6) Analyze the income and expenditure patterns, and formulate and
or in any related field for at least five (5) years in the case of the recommend fiscal plans and policies for consideration of the finance
provincial or city budget officer, and at least three (3) years in the case committee of the local government unit concerned as provided under
of the municipal budget officer. Title Five, Book II of this Code;

The appointment of a budget officer shall be mandatory for the (7) Promote people participation in development planning within the
provincial, city, and municipal governments. local government unit concerned;

(b) The budget officer shall take charge of the budget office and shall: (8) Exercise supervision and control over the secretariat of the local
development council; and
(1) Prepare forms, orders, and circulars embodying instructions on
budgetary and appropriation matters for the signature of the governor (c) Exercise such other powers and perform such other functions and
or mayor, as the case may be; duties as may be prescribed by law or ordinance.

(2) Review and consolidate the budget proposals of different

departments and offices of the local government unit; ARTICLE VII
The Engineer
(3) Assist the governor or mayor, as the case may be, in the
preparation of the budget and during budget hearings; SECTION 477. Qualifications, Powers and Duties. – (a)
No person shall be appointed engineer unless he is a citizen of the
(4) Study and evaluate budgetary implications of proposed legislation Philippines, a resident of the local government unit concerned, of good
and submit comments and recommendations thereon; moral character, and a licensed civil engineer. He must have acquired
(5) Submit periodic budgetary reports to the Department of Budget experience in the practice of his profession for at least five (5) years in
the case of the provincial or city engineer, and three (3) years in the case
and Management;
of the municipal engineer.
(6) Coordinate with the treasurer, accountant, and the planning and
The appointment of an engineer shall be mandatory for the provincial,
development coordinator for the purpose of budgeting;
city and municipal governments. The city and municipal engineer shall
(7) Assist the sanggunian concerned in reviewing the approved also act as the local building official.
budgets of component local government units;
(b) The engineer shall take charge of the engineering office and shall:
(8) Coordinate with the planning and development coordinator in the
(1) Initiate, review and recommend changes in policies and
formulation of the local government unit development plan; and
objectives, plans and programs, techniques, procedures and practices
(c) Exercise such other powers and perform such other duties and in infrastructure development and public works in general of the local
functions as may be prescribed by law or ordinance. government unit concerned;
(d) The appropriations for personal services of the budget officer (2) Advise the governor or mayor, as the case may be, on
provided under the Department of Budget and Management shall, upon infrastructure, public works, and other engineering matters;
effectivity of this Code, be transferred to the local government unit
concerned. Thereafter, the appropriations for personal services of the (3) Administer, coordinate, supervise, and control the construction,
budget officer shall be provided for in full in the budget of the local maintenance, improvement, and repair of roads, bridges, and other
engineering and public works projects of the local government unit
government unit.
concerned;
(4) Provide engineering services to the local government unit
ARTICLE VI
concerned, including investigation and survey, engineering designs,
The Planning and Development Coordinator feasibility studies, and project management;
SECTION 476. Qualifications, Powers and Duties. – (a) (5) In the case of the provincial engineer, exercise technical
No person shall be appointed planning and development coordinator supervision over all engineering offices of component cities and
unless he is a citizen of the Philippines, a resident of the local government municipalities; and
unit concerned, of good moral character, a holder of a college degree
preferably in urban planning, development studies, economics, public (c) Exercise such other powers and perform such other duties and
administration, or any related course from a recognized college or functions as may be prescribed by law or ordinance.
university, and a first grade civil service eligible or its equivalent. He must
have acquired experience in development planning or in any related field
for at least five (5) years in the case of the provincial or city planning ARTICLE VIII
and development coordinator, and three (3) years in the case of the The Health Officer
municipal planning and development coordinator.
SECTION 478. Qualifications, Powers and Duties. – (a)
The appointment of a planning and development coordinator shall be No person shall be appointed health officer unless he is a citizen of the
mandatory for provincial, city and municipal governments. Philippines, a resident of the local government unit concerned, of good
moral character, and a licensed medical practitioner. He must have
(b) The planning and development coordinator shall take charge of the acquired experience in the practice of his profession for at least five (5)
planning and development office and shall: years in the case of the provincial or city health officer, and three (3)
(1) Formulate integrated economic, social, physical, and other years in the case of the municipal health officer.
development plans and policies for consideration of the local The appointment of a health officer shall be mandatory for provincial,
government development council; city and municipal governments.
(2) Conduct continuing studies, researches, and training programs (b) The health officer shall take charge of the office on health services
necessary to evolve plans and programs for implementation; and shall:
(3) Integrate and coordinate all sectoral plans and studies undertaken (1) Supervise the personnel and staff of said office, formulate
by the different functional groups or agencies; program implementation guidelines and rules and regulations for the
operation of the said office for the approval of the governor or mayor,
(4) Monitor and evaluate the implementation of the different
development programs, projects, and activities in the local as the case may be, in order to assist him in the efficient, effective
and economical implementation of a health services program geared
government unit concerned in accordance with the approved
development plan; to implementation of health-related projects and activities;

Page | 68
 (2) Formulate measures for the consideration of the sanggunian and (2) In addition to the foregoing duties and functions, the civil registrar
provide technical assistance and support to the governor or mayor, shall:
as the case may be, in carrying out activities to ensure the delivery of
basic services and provision of adequate facilities relative to health (i) Accept all registrable documents and judicial decrees affecting
services provided under Section 17 of this Code; the civil status of persons;

(3) Develop plans and strategies and upon approval thereof by the (ii) File, keep and preserve in a secure place the books required
governor or mayor as the case may be, implement the same, by law;
particularly those which have to do with health programs and projects (iii) Transcribe and enter immediately upon receipt all registrable
which the governor or mayor, is empowered to implement and which documents and judicial decrees affecting the civil status of persons
the sanggunian is empowered to provide for under this Code; in the appropriate civil registry books;
(4) In addition to the foregoing duties and functions, the health officer (iv) Transmit to the Office of the Civil Registrar-General, within the
shall: prescribed period, duplicate copies of registered documents
(i) Formulate and implement policies, plans, programs and required by law;
projects to promote the health of the people in the local (v) Issue certified transcripts or copies of any certificate or
government unit concerned; registered documents upon payment of the prescribed fees to the
(ii) Advise the governor or mayor, as the case may be, and the treasurer;
sanggunian on matters pertaining to health; (vi) Receive applications for the issuance of a marriage license
(iii) Execute and enforce all laws, ordinances and regulations and, after determining that the requirements and supporting
relating to public health; certificates and publication thereof for the prescribed period have
been complied with, issue the license upon payment of the
(iv) Recommend to the sanggunian, through the local health authorized fee to the treasurer;
board, the passage of such ordinances as he may deem necessary
for the preservation of public health; (vii) Coordinate with the National Statistics Office in conducting
educational campaigns for vital registration and assist in the
(v) Recommend the prosecution of any violation of sanitary laws, preparation of demographic and other statistics for the local
ordinances or regulations; government unit concerned; and
(vi) Direct the sanitary inspection of all business establishments (3) Exercise such other powers and perform such other duties and
selling food items or providing accommodations such as hotels, functions as may be prescribed by law or ordinance.
motels, lodging houses, pension houses, and the like, in
accordance with the Sanitation Code;
ARTICLE X
(vii) Conduct health information campaigns and render health The Administrator
intelligence services;
SECTION 480. Qualifications, Terms, Powers and
(viii) Coordinate with other government agencies and non- Duties. – (a) No person shall be appointed administrator unless he is a
governmental organizations involved in the promotion and delivery citizen of the Philippines, a resident of the local government unit
of health services; and concerned, of good moral character, a holder of a college degree
preferably in public administration, law, or any other related course from
(ix) In the case of the provincial health officer, exercise general
supervision over health officers of component cities and a recognized college or university, and a first grade civil service eligible
or its equivalent. He must have acquired experience in management and
municipalities; and
administration work for at least five (5) years in the case of the provincial
(5) Be in the frontline of the delivery of health services, particularly or city administrator, and three (3) years in the case of the municipal
during and in the aftermath of man-made and natural disasters and administrator.
calamities; and
The term of administrator is coterminous with that of his appointing
(c) Exercise such other powers and perform such other duties and authority.
functions as may be prescribed by law or ordinance.
The appointment of an administrator shall be mandatory for the
provincial and city governments, and optional for the municipal
ARTICLE IX government.
The Civil Registrar (b) The administrator shall take charge of the office of the administrator
SECTION 479. Qualifications, Powers and Duties. – (a) and shall:
No person shall be appointed civil registrar unless he is a citizen of the (1) Develop plans and strategies and upon approval thereof by the
Philippines, a resident of the local government unit concerned, of good governor or mayor, as the case may be, implement the same
moral character, a holder of a college degree from a recognized college particularly those which have to do with the management and
or university, and a first grade civil service eligible or its equivalent. He administration-related programs and projects which the governor or
must have acquired experience in civil registry work for at least five (5) mayor is empowered to implement and which the sanggunian is
years in the case of the city civil registrar and three (3) years in the case empowered to provide for under this Code;
of the municipal civil registrar.
(2) In addition to the foregoing duties and functions, the
The appointment of a civil registrar shall be mandatory for city and administrator shall:
municipal governments.
(i) Assist in the coordination of the work of all the officials of the
(b) The civil registrar shall be responsible for the civil registration local government unit, under the supervision, direction, and
program in the local government unit concerned, pursuant to the Civil control of the governor or mayor, and for this purpose, he may
Registry Law, the Civil Code, and other pertinent laws, rules and convene the chiefs of offices and other officials of the local
regulations issued to implement them. government unit;
(c) The Civil Registrar shall take charge of the office of the civil registry (ii) Establish and maintain a sound personnel program for the local
and shall: government unit designed to promote career development and
(1) Develop plans and strategies and upon approval thereof by the uphold the merit principle in the local government service;
governor or mayor, as the case may be, implement the same, (iii) Conduct a continuing organizational development of the local
particularly those which have to do with civil registry programs and government unit with the end in view of instituting effective
projects which the mayor is empowered to implement and which the administrative reforms;
sanggunian is empowered to provide for under this Code;
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 (3) Be in the frontline of the delivery of administrative support (3) Recommend measures to the sanggunian and advise the governor or
services, particularly those related to the situations during and in the mayor, as the case may be, on all other matters related to upholding the
aftermath of man-made and natural disasters and calamities; rule of law;
(4) Recommend to the sanggunian and advise the governor and (4) Be in the frontline of protecting human rights and prosecuting any
mayor, as the case may be, on all other matters relative to the violations thereof, particularly those which occur during and in the
management and administration of the local government unit; and aftermath of man-made or natural disasters or calamities; and
(5) Exercise such other powers and perform such other duties and (5) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or by ordinance. functions as may be prescribed by law or ordinance.

ARTICLE XI ARTICLE XII

The Legal Officer The Agriculturist
SECTION 481. Qualifications, Terms, Powers and SECTION 482. Qualifications, Powers and Duties. – (a)
Duties. – (a) No person shall be appointed legal officer unless he is a No person shall be appointed agriculturist unless he is a citizen of the
citizen of the Philippines, a resident of the local government concerned, Philippines, a resident of the local government unit concerned, of good
of good moral character, and a member of the Philippine Bar. He must moral character, a holder of a college degree in agriculture or any related
have practiced his profession for at least five (5) years in the case of the course from a recognized college or university and a first grade civil
provincial and city legal officer, and three (3) years in the case of the service eligible or its equivalent. He must have practiced his profession
municipal legal officer. in agriculture or acquired experience in a related field for at least five (5)
years in the case of the provincial or city agriculturist, and three (3) years
The term of the legal officer shall be coterminous with that of his in the case of the municipal agriculturist.
appointing authority.
The position of an agriculturist shall be mandatory for the provincial
The appointment of legal officer shall be mandatory for the provincial government and optional for the city and municipal governments.
and city governments and optional for the municipal government.
(b) The agriculturist shall take charge of the office for agricultural
(b) The legal officer, the chief legal counsel of the local government unit, services and shall:
shall take charge of the office of legal services and shall:
(1) Formulate measures for the approval of the sanggunian and
(1) Formulate measures for the consideration of the sanggunian and provide technical assistance and support to the governor or mayor,
provide legal assistance and support to the governor or mayor, as the as the case may be, in carrying out said measures to ensure the
case may be, in carrying out the delivery of basic services and delivery of basic services and provision of adequate facilities relative
provisions of adequate facilities as provided for under Section 17 of to agricultural services as provided for under Section 17 of this Code;
this Code;
(2) Develop plans and strategies and upon approval thereof by the
(2) Develop plans and strategies and upon approval thereof by the governor or mayor, as the case may be, implement the same,
governor or mayor, as the case may be, implement the same, particularly those which have to do with agricultural programs and
particularly those which have to do with programs and projects projects which the governor or mayor is empowered to implement
related to legal services which the governor or mayor is empowered and which the sanggunian is empowered to provide for under this
to implement and which the sanggunian is empowered to provide for Code;
under this Code;
(3) In addition to the foregoing duties and functions, the agriculturist
(3) In addition to the foregoing duties and functions, the legal officer shall:
shall:
(i) Ensure that maximum assistance and access to resources in the
(i) Represent the local government unit in all civil actions and production, processing and marketing of agricultural and aqua-
special proceedings wherein the local government unit or any cultural and marine products are extended to farmers, fishermen
official thereof, in his official capacity, is a party: Provided, That, and local entrepreneurs;
in actions or proceedings where a component city or municipality
is a party adverse to the provincial government or to another (ii) Conduct or cause to be conducted location-specific agricultural
component city or municipality, a special legal officer may be researches and assist in making available the appropriate
employed to represent the adverse party; technology arising out of and disseminating information on basic
research on crops, prevention and control of plant diseases and
(ii) When required by the governor, mayor or sanggunian, draft pests, and other agricultural matters which will maximize
ordinances, contracts, bonds, leases and other instruments, productivity;
involving any interest of the local government unit and provide
comments and recommendations on any instrument already (iii) Assist the governor or mayor, as the case may be, in the
drawn; establishment and extension services of demonstration farms or
aqua-culture and marine products;
(iii) Render his opinion in writing on any question of law when
requested to do so by the governor, mayor or sanggunian; (iv) Enforce rules and regulations relating to agriculture and aqua-
culture;
(iv) Investigate or cause to be investigated any local official or
employee for administrative neglect or misconduct in office, and (v) Coordinate with government agencies and non-governmental
recommend appropriate action to the governor, mayor or organizations which promote agricultural productivity through
sanggunian, as the case may be; appropriate technology compatible with environmental integrity;
(v) Investigate or cause to be investigated any person, firm or (4) Be in the frontline of delivery of basic agricultural services,
corporation holding any franchise or exercising any public privilege particularly those needed for the survival of the inhabitants during
for failure to comply with any term or condition in the grant of and in the aftermath of man-made and natural disasters;
such franchise or privilege, and recommend appropriate action to
the governor, mayor or sanggunian, as the case may be; (5) Recommend to the sanggunian and advise the governor or mayor,
as the case may be, on all other matters related to agriculture and
(vi) When directed by the governor, mayor, or sanggunian, initiate aqua-culture which will improve the livelihood and living conditions of
and prosecute, in the interest of the local government unit the inhabitants; and
concerned, any civil action on any bond, lease or other contract
upon any breach or violation thereof; and (c) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance;
(vii) Review and submit recommendations on ordinances approved
and execute orders issued by component units;
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 ARTICLE XIII ARTICLE XIV
The Social Welfare and Development Officer The Environment and Natural Resources Officer
SECTION 483. Qualifications, Powers and Duties. – (a) SECTION 484. Qualifications, Powers and Duties. – (a)
No person shall be appointed social welfare and development officer No person shall be appointed environment and natural resources officer
unless he is a citizen of the Philippines, a resident of the local government unless he is a citizen of the Philippines, a resident of the local government
unit concerned, of good moral character, a duly licensed social worker or unit concerned, of good moral character, a holder of a college degree
a holder of a college degree preferably in sociology or any other related preferably in environment, forestry, agriculture or any related course
course from a recognized college or university, and a first grade civil from a recognized college or university, and a first grade civil service
service eligible or its equivalent. He must have acquired experience in eligible or its equivalent. He must have acquired experience in
the practice of social work for at least five (5) years in the case of the environmental and natural resources management, conservation, and
provincial or city social welfare and development officer, and three (3) utilization, for at least five (5) years in the case of the provincial or city
years in the case of the municipal social welfare and development officer. environment and natural resources officer, and three (3) years in the
case of the municipal environment and natural resources officer.
The appointment of a social welfare and development officer is
mandatory for provincial and city governments, and optional for The appointment of the environment and natural resources officer is
municipal government. optional for provincial, city, and municipal governments.
(b) The social welfare and development officer shall take charge of the (b) The environment and natural resources management officer shall
office on social welfare and development services and shall: take charge of the office on environment and natural resources and shall:
(1) Formulate measures for the approval of the sanggunian and (1) Formulate measures for the consideration of the sanggunian and
provide technical assistance and support to the governor or mayor, provide technical assistance and support to the governor or mayor,
as the case may be, in carrying out measures to ensure the delivery as the case may be, in carrying out measures to ensure the delivery
of basic services and provision of adequate facilities relative to social of basic services and provision of adequate facilities relative to
welfare and development services as provided for under Section 17 environment and natural resources services as provided for under
of this Code; Section 17 of this Code;
(2) Develop plans and strategies and upon approval thereof by the (2) Develop plans and strategies and upon approval thereof, by the
governor or mayor, as the case may be, implement the same governor or mayor, as the case may be, implement the same,
particularly those which have to do with social welfare programs and particularly those which have to do with environment and natural
projects which the governor or mayor is empowered to implement resources programs and projects which the governor or mayor is
and which the sanggunian is empowered to provide for under this empowered to implement and which the sanggunian is empowered
Code; to provide for under this Code;
(3) In addition to the foregoing duties, the social welfare and (3) In addition to the foregoing duties and functions, the environment
development officer shall: and natural resources officer shall:
(i) Identify the basic needs of the needy, the disadvantaged and (i) Establish, maintain, protect and preserve communal forests,
the impoverished and develop and implement appropriate watersheds, tree parks, mangroves, greenbelts, commercial
measures to alleviate their problems and improve their living forests and similar forest projects like industrial tree farms and
conditions; agro-forestry projects;
(ii) Provide relief and appropriate crisis intervention for victims of (ii) Provide extension services to beneficiaries of forest
abuse and exploitation and recommend appropriate measures to development projects and technical, financial and infrastructure
deter further abuse and exploitation; assistance;
(iii) Assist the governor or mayor, as the case may be, in (iii) Manage and maintain seed banks and produce seedlings for
implementing the barangay level program for the total forests and tree parks;
development and protection of children up to six (6) years of age;
(iv) Provide extension services to beneficiaries of forest
(iv) Facilitate the implementation of welfare programs for the development projects and render assistance for natural resources-
disabled, elderly, and victims of drug addiction, the rehabilitation related conservation and utilization activities consistent with
of prisoners and parolees, the prevention of juvenile delinquency ecological balance;
and such other activities which would eliminate or minimize the ill-
effects of poverty; (v) Promote the small-scale mining and utilization of mineral
resources, particularly mining of gold;
(v) Initiate and support youth welfare programs that will enhance
the role of the youth in nation-building; (vi) Coordinate with government agencies and non-governmental
organizations in the implementation of measures to prevent and
(vi) Coordinate with government agencies and non-governmental control land, air and water pollution with the assistance of the
organizations which have for their purpose the promotion and the Department of Environment and Natural Resources;
protection of all needy, disadvantaged, underprivileged or
impoverished groups or individuals, particularly those identified to (4) Be in the frontline of the delivery of services concerning the
be vulnerable and high-risk to exploitation, abuse and neglect; environment and natural resources, particularly in the renewal and
rehabilitation of the environment during and in the aftermath of man-
(4) Be in the frontline of service delivery, particularly those which have made and natural disasters and calamities;
to do with immediate relief during and assistance in the aftermath of
man-made and natural disaster and natural calamities; (5) Recommend to the sanggunian and advise the governor or mayor,
as the case may be, on all matters relative to the protection,
(5) Recommend to the sanggunian and advise the governor or mayor, conservation maximum utilization, application of appropriate
as the case may be, on all other matters related to social welfare and technology and other matters related to the environment and natural
development services which will improve the livelihood and living resources; and
conditions of the inhabitants; and
(c) Exercise such other powers and perform such other duties and
(c) Exercise such other powers and perform such other duties and functions as may be prescribed by law or ordinance.
functions as may be prescribed by law or ordinance.

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 ARTICLE XV The term of the information officer is coterminous with that of his
The Architect appointing authority.

SECTION 485. Qualifications, Powers and Duties. – (a) (b) The information officer shall take charge of the office on public
No person shall be appointed architect unless he is a citizen of the information and shall:
Philippines, a resident of the local government unit concerned, of good
(1) Formulate measures for the consideration of the sanggunian and
moral character, and a duly licensed architect. He must have practiced
provide technical assistance and support to the governor or mayor,
his profession for at least five (5) years in the case of the provincial or
as the case may be, in providing the information and research data
city architect, and three (3) years in the case of the municipal architect.
required for the delivery of basic services and provision of adequate
The appointment of the architect is optional for provincial, city and facilities so that the public becomes aware of said services and may
municipal governments. fully avail of the same;

(b) The Architect shall take charge of the office on architectural (2) Develop plans and strategies and, upon approval thereof by the
planning and design and shall: governor or mayor, as the case may be, implement the same,
particularly those which have to do with public information and
(1) Formulate measures for the consideration of the sanggunian and research data to support programs and projects which the governor
provide technical assistance and support to the governor or mayor, or mayor is empowered to implement and which the sanggunian is
as the case may be, in carrying out measures to ensure the delivery empowered to provide for under this Code;
of basic services and provision of adequate facilities relative to
architectural planning and design as provided for under Section 17 (3) In addition to the foregoing duties and functions, the information
of this Code; officer shall:

(2) Develop plans and strategies and upon approval thereof by the (i) Provide relevant, adequate, and timely information to the local
governor or mayor, as the case may be, implement the same, government unit and its residents;
particularly those which have to do with architectural planning and
(ii) Furnish information and data on local government units to
design programs and projects which the governor or mayor is
government agencies or offices as may be required by law or
empowered to implement and which the sanggunian is empowered
ordinance; and non-governmental organizations to be furnished to
to provide for under this Code;
said agencies and organizations;
(3) In addition to the foregoing duties and functions, the architect
(iii) Maintain effective liaison with the various sectors of the
shall: cdasia
community on matters and issues that affect the livelihood and the
(i) Prepare and recommend for consideration of the sanggunian quality of life of the inhabitants and encourage support for
the architectural plan and design for the local government unit or programs of the local and national government;
a part thereof, including the renewal of slums and blighted areas,
(4) Be in the frontline in providing information during and in the
land reclamation activities, the greening of land, and appropriate
aftermath of man-made and natural disasters and calamities, with
planning of marine and foreshore areas;
special attention to the victims thereof, to help minimize injuries and
(ii) Review and recommend for appropriate action of the casualties during and after the emergency, and to accelerate relief
sanggunian, governor or mayor, as the case may be, the and rehabilitation;
architectural plans and design submitted by governmental and
(5) Recommend to the sanggunian and advise the governor or mayor,
non-governmental entities or individuals, particularly those for
as the case may be, on all matters relative to public information and
undeveloped, underdeveloped, and poorly-designed areas; and
research data as it relates to the total socio-economic development
(iii) Coordinate with government and non-government entities of the local government unit; and
and individuals involved in the aesthetics and the maximum
(c) Exercise such other powers and perform such other duties and
utilization of the land and water within the jurisdiction of the
functions as may be prescribed by law or ordinance.
local government unit, compatible with environmental integrity
and ecological balance;
(4) Be in the frontline of the delivery of services involving ARTICLE XVII
architectural planning and design, particularly those related to the The Cooperatives Officer
redesigning of spatial distribution of basic facilities and physical SECTION 487. Qualifications, Powers and Duties. – (a)
structures during and in the aftermath of man-made and natural No person shall be appointed cooperatives officer unless he is a citizen
disasters and calamities; of the Philippines, a resident of the local government unit concerned, of
(5) Recommend to the sanggunian and advise the governor or good moral character, a holder of a college degree preferably in business
mayor, as the case may be, on all other matters relative to the administration with special training in cooperatives or any related course
architectural planning and design as it relates to the total socio- from a recognized college or university, and a first grade civil service
economic development of the local government unit; and eligible or its equivalent. He must have experience in cooperatives
organization and management for at least five (5) years in the case of
(c) Exercise such other powers and perform such other duties and provincial or city cooperatives officer, and three (3) years in the case of
functions as may be prescribed by law or ordinance. municipal cooperatives officer.
The appointment of the cooperatives officer is optional for the provincial
ARTICLE XVI and city governments.
The Information Officer
(b) The cooperatives officer shall take charge of the office for the
SECTION 486. Qualifications, Powers and Duties. – (a) development of cooperatives and shall:
No person shall be appointed information officer unless he is a citizen of
(1) Formulate measures for the consideration of the sanggunian, and
the Philippines, a resident of the local government unit concerned, of
provide technical assistance and support to the governor or mayor,
good moral character, a holder of a college degree preferably in
as the case may be, in carrying out measures to ensure the delivery
journalism, mass communications or any related course from a
of basic services and provision of facilities through the development
recognized college or university, and a first grade civil service eligible or
of cooperatives, and in providing access to such services and facilities;
its equivalent. He must have experience in writing articles and research
papers, or in writing for print, television or broadcast media for at least (2) Develop plans and strategies and, upon approval thereof by the
three (3) years in the case of the provincial or city information officer, governor or mayor, as the case may be, implement the same,
and one (1) year in the case of municipal information officer. particularly those which have to do with the integration of
cooperatives principles and methods in programs and projects which
The appointment of the information officer is optional for the provincial,
the governor or mayor is empowered to implement and which the
city and municipal governments.
sanggunian is empowered to provide for under this Code;
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 (3) In addition to the foregoing duties and functions, the cooperatives ARTICLE XIX
officer shall: The Veterinarian
(i) Assist in the organization of cooperatives; SECTION 489. Qualifications, Powers and Duties. – (a) No person
shall be appointed veterinarian unless he is a citizen of the Philippines, a
(ii) Provide technical and other forms of assistance to existing
resident of the local government unit concerned, of good moral
cooperatives to enhance their viability as an economic enterprise
character, a licensed doctor of veterinary medicine. He must have
and social organization;
practiced his profession for at least three (3) years in the case of
(iii) Assist cooperatives in establishing linkages with government provincial or city veterinarian and at least one (1) year in the case of the
agencies and non-government organizations involved in the municipal veterinarian.
promotion and integration of the concept of cooperatives in the
The appointment of a veterinarian officer is mandatory for the provincial
livelihood of the people and other community activities;
and city governments.
(4) Be in the frontline of cooperatives organization, rehabilitation or
(b) The veterinarian shall take charge of the office for veterinary services
viability-enhancement, particularly during and in the aftermath of
and shall:
man-made and natural calamities and disasters, to aid in their survival
and, if necessary subsequent rehabilitation; (1) Formulate measures for the consideration of the sanggunian, and
provide technical assistance and support to the governor or mayor,
(5) Recommend to the sanggunian, and advise the governor or
as the case may be, in carrying out measures to ensure the delivery
mayor, as the case may be, on all matters relative to cooperatives
of basic services and provision of adequate facilities pursuant to
development and viability-enhancement which will improve the
Section 17 of this Code;
livelihood and quality of life of the inhabitants; and
(2) Develop plans and strategies and upon approval thereof by the
(c) Exercise such other powers and perform such other duties and
governor or mayor, as the case may be, implement the same,
functions as may be prescribed by law or ordinance.
particularly those which have to do with veterinary-related activities
which the governor or mayor is empowered to implement and which
ARTICLE XVIII the sanggunian is empowered to provide for under this Code;
The Population Officer (3) In addition to the foregoing duties and functions, the veterinarian
SECTION 488. Qualifications, Powers and Duties. – (a) shall:
No person shall be appointed population officer unless he is a citizen of (i) Advise the governor or the mayor, as the case may be, on all
the Philippines, a resident of the local government unit concerned, of matters pertaining to the slaughter of animals for human
good moral character, a holder of a college degree with specialized consumption and the regulation of slaughterhouses;
training in population development from a recognized college or
university, and a first grade civil service eligible or its equivalent. He must (ii) Regulate the keeping of domestic animals;
have experience in the implementation of programs on population
(iii) Regulate and inspect poultry, milk and dairy products for
development or responsible parenthood for at least five (5) years in the
public consumption;
case of the provincial or city population officer, and three (3) years in the
case of the municipal population officer. (iv) Enforce all laws and regulations for the prevention of cruelty
to animals; and
The appointment of a population officer shall be optional in the local
government unit: Provided, however, That provinces and cities which (v) Take the necessary measures to eradicate, prevent or cure all
have existing population offices shall continue to maintain such offices forms of animal diseases;
for a period of five (5) years from the date of effectivity of this Code,
after which said offices shall become optional. (4) Be in the frontline of veterinary related activities, such as in the
outbreak of highly-contagious and deadly diseases, and in situations
(b) The population officer shall take charge of the office on population resulting in the depletion of animals for work and human consumption,
development and shall: particularly those arising from and in the aftermath of man-made and
natural disasters and calamities;
(1) Formulate measures for the consideration of the sanggunian and
provide technical assistance and support to the governor or mayor, (5) Recommend to the sanggunian and advise the governor or mayor,
as the case may be, in carrying out measures to ensure the delivery as the case may be, on all other matters relative to veterinary services
of basic services and provision of adequate facilities relative to the which will increase the number and improve the quality of livestock,
integration of the population development principles and in providing poultry and other domestic animals used for work or human
access to said services and facilities; consumption; and
(2) Develop plans and strategies and upon approval thereof by the (c) Exercise such other powers and perform such other duties and
governor or mayor, as the case may be, implement the same, functions as may be prescribed by law or ordinance.
particularly those which have to do with the integration of population
development principles and methods in programs and projects which
the governor or mayor is empowered to implement and which the ARTICLE XX
sanggunian is empowered to provide for under this Code; The General Services Officer
(3) In addition to the foregoing duties and functions, the population SECTION 490. Qualifications, Powers and Duties. – (a)
officer shall: No person shall be appointed general services officer unless he is a citizen
of the Philippines, a resident of the local government unit concerned, of
(i) Assist the governor or mayor, as the case may be, in the good moral character, a holder of a college degree on public
implementation of the Constitutional provisions relative to administration, business administration and management from a
population development and the promotion of responsible recognized college or university, and a first grade civil service eligible or
parenthood; its equivalent. He must have acquired experience in general services,
(ii) Establish and maintain an updated data bank for program including management of supply, property, solid waste disposal, and
operations, development planning and an educational program to general sanitation for at least five (5) years in the case of the provincial
ensure the people’s participation in and understanding of or city general services officer, and at least three (3) years in the case of
population development; the municipal general services officer.

(iii) Implement appropriate training programs responsive to the The appointment of a general services officer shall be mandatory for the
cultural heritage of the inhabitants; and provincial and city governments,

(c) Exercise such other powers and perform such other duties and (b) The general services officer shall take charge of the office on general
functions as may be prescribed by law or ordinance. services and shall:

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 (1) Formulate measures for the consideration of the sanggunian and SECTION 492. Representation, Chapters, National
provide technical assistance and support to the governor or mayor, Liga. – Every barangay shall be represented in said liga by the punong
as the case may be, in carrying out measures to ensure the delivery barangay or, in his absence or incapacity, by a sanggunian member duly
of basic services and provision of adequate facilities pursuant to elected for the purpose among its members, who shall attend all
Section 17 of this Code and which require general services expertise meetings or deliberations called by the different chapters of the liga.
and technical support services;
The liga shall have chapters at the municipal, city, provincial and
(2) Develop plans and strategies and upon approval thereof by the metropolitan political subdivision levels.
governor or mayor, as the case may be, implement the same,
particularly those which have to do with general services supportive The municipal and city chapters of the liga shall be composed of the
of the welfare of the inhabitants which the governor or mayor is barangay representatives of municipal and city barangays respectively.
empowered to implement and which the sanggunian is empowered The duly elected presidents of component municipal and city chapters
to provide for under this Code; shall constitute the provincial chapter or the metropolitan political
subdivision chapter. The duly elected presidents of highly-urbanized
(3) In addition to the foregoing duties and functions, the general cities, provincial chapters, the Metropolitan Manila chapter and
services officer shall: metropolitan political subdivision chapters shall constitute the National
Liga ng mga Barangay.
(i) Take custody of and be accountable for all properties, real or
personal, owned by the local government unit and those granted SECTION 493. Organization. – The liga at the municipal,
to it in the form of donation, reparation, assistance and city, provincial, metropolitan political subdivision, and national levels
counterpart of joint projects; directly elect a president, a vice-president, and five (5) members of the
board of directors. The board shall appoint its secretary and treasurer
(ii) With the approval of the governor or mayor, as the case may and create such other positions as it may deem necessary for the
be, assign building or land space to local officials or other public management of the chapter. A secretary-general shall be elected from
officials, who by law, are entitled to such space; among the members of the national liga and shall be charged with the
(iii) Recommend to the governor or mayor, as the case may be, overall operation of the liga on the national level. The board shall
the reasonable rental rates for local government properties, coordinate the activities of the chapters of the liga.
whether real or personal, which will be leased to public or private SECTION 494. Ex-Officio Membership in Sanggunians.
entities by the local government; – The duly elected presidents of the liga at the municipal, city and
(iv) Recommend to the governor or mayor, as the case may be, provincial levels, including the component cities and municipalities of
reasonable rental rates of private properties which may be leased Metropolitan Manila, shall serve as ex officio members of the
for the official use of the local government unit; sangguniang bayan, sangguniang panlungsod, sangguniang
panlalawigan, respectively. They shall serve as such only during their
(v) Maintain and supervise janitorial, security, landscaping and term of office as presidents of the liga chapters, which in no case shall
other related services in all local government public buildings and be beyond the term of office of the sanggunian concerned.
other real property, whether owned or leased by the local
government unit; SECTION 495. Powers, Functions and Duties of the Liga
ng mga Barangay. – The Liga ng mga Barangay shall:
(vi) Collate and disseminate information regarding prices, shipping
and other costs of supplies and other items commonly used by the (a) Give priority to programs designed for the total development of the
local government unit; barangays and in consonance with the policies, programs and projects
of the National Government;
(vii) Perform archival and record management with respect to
records of offices and departments of the local government unit; (b) Assist in the education of barangay residents for people’s
and participation in local government administration in order to promote
united and concerted action to achieve country-wide development goals;
(viii) Perform all other functions pertaining to supply and property
management heretofore performed by the local government (c) Supplement the efforts of government in creating gainful employment
treasurer; and enforce policies on records creation, maintenance, within the barangay;
and disposal; (d) Adopt measures to promote the welfare of barangay officials;
(4) Be in the frontline of general services related activities, such as (e) Serve as a forum of the barangays in order to forge linkages with
the possible or imminent destruction or damage to records, supplies, government and non-governmental organizations and thereby promote
properties, and structures and the orderly and sanitary clearing up of the social, economic and political well-being of the barangays; and
waste materials or debris, particularly during and in the aftermath of
man-made and natural disasters and calamities; (f) Exercise such other powers and perform such other duties and
functions which will bring about stronger ties between barangays and
(5) Recommend to the sanggunian and advise the governor or mayor, promote the welfare of the barangay inhabitants.
as the case may be, on all other matters relative to general services;
and
ARTICLE II
(c) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance. League of Municipalities
SECTION 496. Purpose of Organization. – There shall be
an organization of all municipalities to be known as the League of
TITLE VI Municipalities for the primary purpose of ventilating, articulating and
LEAGUES OF LOCAL GOVERNMENT UNITS AND ELECTIVE crystallizing issues affecting municipal government administration, and
OFFICIALS securing, through proper and legal means, solutions thereto.
CHAPTER I The league shall form provincial chapters composed of the league
LEAGUES OF LOCAL GOVERNMENT UNITS presidents for all component municipalities of the province.
ARTICLE I SECTION 497. Representation. – Every municipality shall
LIGA NG MGA BARANGAY be represented in the league by the municipal mayor or in his absence,
by the vice-mayor or a sanggunian member duly elected for the purpose
SECTION 491. Purpose of Organization. – There shall be by the members, who shall attend all meetings and participate in the
an organization of all barangays to be known as the Liga ng mga deliberations of the league.
Barangay for the primary purpose of determining the representation of
the Liga in the sanggunians, and for ventilating, articulating and SECTION 498. Powers, Functions and Duties of the
crystallizing issues affecting barangay government administration and League of Municipalities. – The League of Municipalities shall:
securing, through proper and legal means, solutions thereto.
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(a) Assist the National Government in the formulation and ARTICLE IV
implementation of policies, programs and projects affecting League of Provinces
municipalities as a whole;
SECTION 502. Purpose of Organization. – There shall be
(b) Promote local autonomy at the municipal level; an organization of all provinces to be known as the League of Provinces
for the primary purpose of ventilating, articulating and crystallizing issues
(c) Adopt measures for the promotion of the welfare of all municipalities
affecting provincial and metropolitan political subdivision government
and its officials and employees;
administration, and securing, through proper and legal means, solutions
(d) Encourage people’s participation in local government administration thereto. For this purpose, the Metropolitan Manila Area and any
in order to promote united and concerted action for the attainment of metropolitan political subdivision shall be considered as separate
country-wide development goals; provincial units of the league.

(e) Supplement the efforts of the National Government in creating SECTION 503. Representation. – Every province shall be
opportunities for gainful employment within the municipalities; represented in the league by the provincial governor, or in his absence,
by the provincial vice-governor or a sanggunian member duly elected for
(f) Give priority to programs designed for the total development of the the purpose by the members, who shall attend all meetings and
municipalities in consonance with the policies, programs and projects of participate in the deliberations of the league.
the National Government;
SECTION 504. Powers, Functions and Duties of the
(g) Serve as a forum for crystallizing and expressing ideas, seeking the League of Provinces. – The League of Provinces shall:
necessary assistance of the National Government, and providing the
private sector avenues for cooperation in the promotion of the welfare (a) Assist the National Government in the formulation and
of the municipalities; and implementation of the policies, programs and projects affecting provinces
as a whole;
(h) Exercise such other powers and perform such other duties and
functions as the league may prescribe for the welfare of the (b) Promote local autonomy at the provincial level;
municipalities.
(c) Adopt measures for the promotion of the welfare of all provinces and
its officials and employees;
ARTICLE III (d) Encourage people’s participation in local government administration
League of Cities in order to promote united and concerted action for the attainment of
SECTION 499. Purpose of Organization. – There shall be countrywide development goals;
an organization of all cities to be known as the League of Cities for the (e) Supplement the efforts of the National Government in creating
primary purpose of ventilating, articulating and crystallizing issues opportunities for gainful employment within the province;
affecting city government administration, and securing, through proper
and legal means, solutions thereto. (f) Give priority to programs designed for the total development of the
provinces in consonance with the policies, programs and projects of the
The league may form chapters at the provincial level for the component National Government;
cities of a province. Highly-urbanized cities may also form a chapter of
the League. The National League shall be composed of the presidents of (g) Serve as a forum for crystallizing and expressing ideas, seeking the
the league of highly-urbanized cities and the presidents of the provincial necessary assistance of the National Government and providing the
chapters of the league of component cities. private sector avenues for cooperation in the promotion of the welfare
of the provinces; and
SECTION 500. Representation. – Every city shall be
represented in the league by the city mayor or, in his absence, by the (h) Exercise such other powers and perform such other duties and
city vice-mayor or a sanggunian member duly elected for the purpose by functions as the league may prescribe for the welfare of the provinces
the members, who shall attend all meetings and participate in the and metropolitan political subdivisions.
deliberations of the league.
SECTION 501. Powers, Functions and Duties of the ARTICLE V
League of Cities. – The League of Cities shall: Provisions Common to All Leagues
(a) Assist the National Government in the formulation and SECTION 505. Funding. – (a) All leagues shall derive its
implementation of the policies, programs and projects affecting cities as funds from contributions of member local government units and from
a whole; fund-raising projects and activities without the necessity of securing
permits therefor: Provided, That the proceeds from said fund-raising
(b) Promote local autonomy at the city level;
projects and activities shall be used primarily to fund the projects for
(c) Adopt measures for the promotion of the welfare of all cities and its which the said proceeds have been raised, subject to the pertinent
officials and employees; provisions of this Code and the Omnibus Election Code.

(d) Encourage people’s participation in local government administration (b) All funds of leagues shall be deposited as trust funds with its treasurer
in order to promote united and concerted action for the attainment of and shall be disbursed in accordance with the board of director’s
country-wide development goals; resolutions, subject to pertinent accounting and auditing rules and
regulations: Provided, That the treasurer shall be bonded in an amount
(e) Supplement the efforts of the National Government in creating to be determined by the board of directors. The funds of a chapter shall
opportunities for gainful employment within the cities; be deposited as chapter funds and funds of the national league shall be
(f) Give priority to programs designed for the total development of cities deposited as national funds.
in consonance with the policies, programs and projects of the National SECTION 506. Organizational Structure. – To ensure the
Government; effective and efficient administration, the leagues for municipalities, cities
(g) Serve as a forum for crystallizing and expressing ideas, seeking the and provinces shall elect chapter-level and national-level boards of
necessary assistance of the National Government and providing the directors and a set of officers headed by the president. A secretary-
private sector avenues for cooperation in the promotion of the welfare general shall be chosen from among the national league members to
of the cities; and manage the day to day operation and activities of the national league.
The board of directors on the chapter or national level may create such
(h) Exercise such other powers and perform such other duties and other positions as may be deemed necessary for the management of the
functions as the league may prescribe for the welfare of the cities. chapters and of the national league. The national board of directors of
the leagues for municipalities, cities or provinces shall coordinate
programs, projects and activities of the chapter and the national-level
league.

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 SECTION 507. Constitution and By-laws of the Liga and collections and disbursements of the local government unit concerned
the Leagues. – All other matters not herein otherwise provided for within ten (10) days following the end of every month and for at least
affecting the internal organization of the leagues of local government two (2) consecutive weeks at prominent places in the main office building
units shall be governed by their respective constitution and by-laws of the local government unit concerned, its plaza and main street, and
which are hereby made suppletory to the provision of this Chapter: to publish said itemization in a newspaper of general circulation, where
Provided, That said constitution and by-laws shall always conform to the available, in the territorial jurisdiction of such unit, shall be punished by
provisions of the Constitution and existing laws. a fine not exceeding Five hundred pesos (P500.00) or by imprisonment
not exceeding one (1) month, or both such fine and imprisonment, at
the discretion of the court.
CHAPTER II
Leagues and Federations of Local Elective Officials SECTION 514. Engaging in Prohibited Business
Transactions or Possessing Illegal Pecuniary Interest. – Any local
SECTION 508. Organization. – (a) Vice-governors, vice- official and any person or persons dealing with him who violate the
mayors, sanggunian members of barangays, municipalities, component prohibitions provided in Section 89 of Book I hereof, shall be punished
cities, highly-urbanized cities and provinces, and other elective local with imprisonment for six (6) months and one (1) day to six (6) years,
officials of local government units, including those of the Metropolitan or a fine of not less than Three thousand pesos (P3,000.00) nor more
Manila Area and any metropolitan political subdivisions, may form their than Ten thousand pesos (P10,000.00), or both such imprisonment and
respective leagues or federations, subject to applicable provisions of this fine, at the discretion of the court.
Title and pertinent provisions of this Code;
SECTION 515. Refusal or Failure of Any Party or
(b) Sanggunian members of component cities and municipalities shall Witness to Appear before the Lupon or Pangkat. – Refusal or willful
form a provincial federation and elect a board of directors and a set of failure of any party or witness to appear before the lupon or pangkat in
officers headed by the president. The duly elected president of the compliance with a summons issued pursuant to the provisions on the
provincial federation of sanggunian members of component cities and Katarungang Pambarangay under Chapter 7, Title I of Book III of this
municipalities shall be an ex officio member of the sangguniang Code may be punished by the city or municipal court as for indirect
panlalawigan concerned and shall serve as such only during his term of contempt of court upon application filed therewith by the lupon
office as president of the provincial federation of sanggunian members chairman, the pangkat chairman, or by any of the contending parties.
of component cities and municipalities, which in no case shall be beyond Such refusal or willful failure to appear shall be reflected in the records
the term of office of the sangguniang panlalawigan concerned. of the lupon secretary or in the minutes of the pangkat secretary and
shall bar the complainant who fails to appear, from seeking judicial
SECTION 509. Constitution and By-laws. – The leagues
recourse for the same cause of action, and the respondent who refuses
or federations shall adopt a constitution and by-laws which shall govern
to appear, from filing any counterclaim arising out of, or necessarily
their internal organization and operation: Provided, That said constitution
connected with the complaint.
and by-laws shall always conform to the provision of the Constitution and
existing laws. A pangkat member who serves as such shall be entitled to an
honorarium, the amount of which is to be determined by the sanggunian
SECTION 510. Funding. – The leagues and federations may
concerned, subject to the provisions in this Code cited above.
derive funds from contributions of individual league or federation
members or from fund-raising projects or activities. The local SECTION 516. Penalties for Violation of Tax
government unit concerned may appropriate funds to support the league Ordinances. – The sanggunian of a local government unit is authorized
or federation organized pursuant to this section, subject to the availability to prescribe fines or other penalties for violation of tax ordinances but in
of funds. no case shall such fines be less than One thousand pesos (P1,000.00)
nor more than Five thousand pesos (P5,000.00), nor shall imprisonment
BOOK IV be less than one (1) month nor more than six (6) months. Such fine or
other penalty, or both, shall be imposed at the discretion of the court.
MISCELLANEOUS AND FINAL PROVISIONS The sangguniang barangay may prescribe a fine of not less than One
hundred pesos (P100.00) nor more than One thousand pesos
TITLE I
(P1,000.00).
PENAL PROVISIONS SECTION 517. Omission of Property from Assessment
SECTION 511. Posting and Publication of Ordinances or Tax Rolls by Officers and Other Acts. – Any officer charged with
with Penal Sanctions. – (a) Ordinances with penal sanctions shall be the duty of assessing real property who willfully fails to assess, or who
posted at prominent places in the provincial capitol, city, municipal or intentionally omits from the assessment or tax roll any real property
barangay hall, as the case may be, for a minimum period of three (3) which he knows to be taxable, or who willfully or negligently
consecutive weeks. Such ordinances shall also be published in a underassesses any real property, or who intentionally violates or fails to
newspaper of general circulation, where available, within the territorial perform any duty imposed upon him by law relating to the assessment
jurisdiction of the local government unit concerned, except in the case of of taxable real property shall, upon conviction, be punished by a fine of
barangay ordinances. Unless otherwise provided therein, said ordinances not less than One thousand pesos (P1,000.00) nor more than Five
shall take effect on the day following its publication, or at the end of the thousand pesos (P5,000.00), or by imprisonment of not less than one (1)
period of posting, whichever occurs later. month nor more than six (6) months, or both such fine and
imprisonment, at the discretion of the court.
(b) Any public officer or employee who violates an ordinance may be
meted administrative disciplinary action, without prejudice to the filing of The same penalty shall be imposed upon any officer charged with the
the appropriate civil or criminal action. duty of collecting the tax due on real property who willfully or negligently
fails to collect the tax and institute the necessary proceedings for the
(c) The secretary to the sanggunian concerned shall transmit official collection of the same.
copies of such ordinances to the chief executive officer of the Office
Gazette within seven (7) days following the approval of the said Any other officer required by this Code to perform acts relating to the
ordinance for publication purposes. The Official Gazette may publish administration of the real property tax or to assist the assessor or
ordinances with penal sanctions for archival and reference purposes. treasurer in such administration, who willfully fails to discharge such
duties shall, upon conviction be punished by a fine of not less than Five
SECTION 512. Withholding of Benefits Accorded to hundred pesos (P500.00) nor more than Five thousand pesos
Barangay Officials. – Willful and malicious withholding of any of the (P5,000.00) or imprisonment of not less than one (1) month nor more
benefits accorded to barangay officials under Section 393 hereof shall be than six (6) months, or both such fine and imprisonment, at the
punished with suspension or dismissal from office of the official or discretion of the court.
employee responsible therefor.
SECTION 518. Government Agents Delaying
SECTION 513. Failure to Post and Publish the Itemized Assessment of Real Property and Assessment Appeals. – Any
Monthly Collections and Disbursements. – Failure by the local government official who intentionally and deliberately delays the
treasurer or the local chief accountant to post the itemized monthly assessment of real property or the filing of any appeal against its
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assessment shall, upon conviction, be punished by a fine of not less than (b) No infrastructure or community project within the territorial
Five hundred pesos (P500.00) nor more than Five thousand pesos jurisdiction of any local government unit shall be undertaken without
(P5,000.00), or by imprisonment of not less than one (1) month nor more informing the local chief executive and the sanggunian concerned.
than six (6) months, or both such fine and imprisonment, at the
discretion of the court. SECTION 525. Records and Properties. – All records,
equipment, buildings, facilities, and other properties of any office or body
SECTION 519. Failure to Dispose of Delinquent Real of a local government unit abolished or reorganized under this Code shall
Property at Public Auction. – The local treasurer concerned who fails be transferred to the office or body to which its powers, functions, and
to dispose of delinquent real property at public auction in compliance responsibilities are substantially devolved.
with the pertinent provisions of this Code, and any other local
government official whose acts hinder the prompt disposition of
delinquent real property at public auction shall, upon conviction, be TITLE III
subject to a fine of not less than One thousand pesos (P1,000.00) nor Transitory Provisions
more than Five thousand pesos (P5,000.00), or imprisonment of not less
SECTION 526. Application of this Code to Local
than one (1) month nor more than six (6) months, or both such fine and
Government Units in the Autonomous Regions. – This Code shall
imprisonment, at the discretion of the court.
apply to all provinces, cities, municipalities and barangays in the
SECTION 520. Prohibited Acts Related to the Award of autonomous regions until such time as the regional government
Contracts Under the Provisions on Credit Financing. – It shall be concerned shall have enacted its own local government code.
unlawful for any public official or employee in the provincial, city, or
SECTION 527. Prior Approval or Clearance on Regular
municipal government, or their relatives within the fourth civil degree of
and Recurring Transactions. – Six (6) months after effectivity of this
consanguinity or affinity, to enter into or have any pecuniary interest in
Code, prior approval of or clearance from national agencies or offices
any contract for the construction, acquisition, operation or maintenance
shall no longer be required for regular and recurring transactions and
of any project awarded pursuant to the provisions of Title Four in Book
activities of local government units.
II hereof, or for the procurement of any supplies, materials, or equipment
of any kind to be used in the said project. Any person convicted for SECTION 528. Deconcentration of Requisite Authority
violation of the provisions of said Title shall be removed from office and and Power. – The National Government shall, six (6) months after the
shall be punishable by imprisonment of not less than one (1) month, nor effectivity of this Code, effect the deconcentration of requisite authority
more than two (2) years, at the discretion of the court, without prejudice and power to the appropriate regional offices or field offices of national
to prosecution under other laws. agencies or offices whose major functions are not devolved to local
government units.
TITLE II SECTION 529. Tax Ordinances or Revenue Measures. –
Provisions for Implementation All existing tax ordinances or revenue measures of local government
units shall continue to be in force and effect after the effectivity of this
SECTION 521. Mandatory Review Every Five Years. – Code unless amended by the sanggunian concerned, or inconsistent
Congress shall undertake a mandatory review of this Code at least once with, or in violation of, the provisions of this Code.
every five (5) years and as often as it may deem necessary, with the
primary objective of providing a more responsive and accountable local SECTION 530. Local Water Districts. – All powers,
government structure. functions, and attributes granted by Presidential Decree Numbered One
hundred ninety-eight (P.D. No. 198), otherwise known as “The Provincial
SECTION 522. Insurance Coverage. – The Government Water Utility Act of 1973,” to the Local Water Utilities Administration
Service Insurance System (GSIS) shall establish and administer an (LWUA) may be devolved in toto to the existing local water districts
appropriate system under which the punong barangay, the members of should they opt or choose to exercise, in writing, such powers, functions
the sangguniang barangay, the barangay secretary, the barangay and attributes: Provided, That all obligations of the local water district
treasurer, and the members of the barangay tanod shall enjoy insurance concerned to the LWUA shall first be settled prior to said devolution.
coverage as provided in this Code and other pertinent laws. For this
purpose, the GSIS is hereby directed to undertake an actuarial study, SECTION 531. Debt Relief for Local Government Units.
issue rules and regulations, determine the premiums payable, and – (a) Unremitted national collections and statutory contributions. – All
recommend to Congress the amount of appropriations needed to support debts owed by local government units to the National Government in
the system. The amount needed for the implementation of the said unremitted contributions to the Integrated National Police Fund, the
insurance system shall be included in the annual General Appropriations Special Education Fund, and other statutory contributions as well as in
Act. unremitted national government shares of taxes, charges, and fees
collected by the local government units, are hereby written off in full.
SECTION 523. Personnel Retirement and/or Benefits.
– An official or employee of the National Government or local government (b) Program loans. – (1) Program loans secured by local government
unit separated from the service as a result of reorganization effected units which were relent to private persons, natural or juridical, shall
under this Code shall, if entitled under the laws then in force, receive the likewise be written off from the books of the local government units
retirement and other benefits accruing thereunder: Provided, however, concerned: Provided, however, That the national government agency
That such benefits shall be given funding priority by the Department of tasked with the implementation of these programs shall continue to
Budget and Management in the case of national officials and employees, collect from the debtors belonging to the private sector concerned.
and the local government unit concerned in the case of local officials and
(2) Program loans granted to local government units by national
employees.
government agencies and which were utilized by the local units for
Where the employee concerned is not eligible for retirement, he shall be community development, livelihood, and other small-scale projects
entitled to a gratuity from the National Government or the local are hereby written off in full.
government unit concerned, as the case may be, equivalent to an
(c) Settlement of debts due to government financing institutions (GFIs),
amount not lower than one (1) month salary for every year of service
government-owned and -controlled corporations (GOCCs), and private
over and above the monetary value of the leave credits said employee is
utilities. – The National Government shall assume all debts incurred or
entitled to receive pursuant to existing laws.
contracted by local government units from GFIs, GOCCs, and private
SECTION 524. Inventory of Infrastructure and Other utilities that are outstanding as of December 31, 1988, in accordance
Community Facilities. – (a) Each local government unit shall conduct with the following schemes:
a periodic inventory of infrastructure and other community facilities and
(1) Debts due GFIs. – The National Government may buy outstanding
undertake the maintenance, repair, improvement, or reconstruction of
obligations incurred by local government units from government
these facilities through a closer cooperation among the various agencies
financing institutions at a discounted rate.
of the National Government operating within the province, city, or
municipality concerned. (2) Debts due GOCCs. – The National Government may settle such
obligations at discounted rate through offsetting, only to the extent
of the obligations of local governments against the outstanding
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 advances made by the National Treasury in behalf of the government- (d) All seats reserved for the pederasyon ng mga sangguniang kabataan
owned and -controlled corporations concerned. in the different sanggunians shall be deemed vacant until such time that
the sangguniang kabataan chairmen shall have been elected and the
(3) Debts due private utilities. – The National Government may settle respective pederasyon presidents have been selected: Provided, That
these obligations at a discounted rate by offsetting against the elections for the kabataang barangay conducted under Batas Pambansa
outstanding obligations of such private utilities to government-owned Blg. 337 at any time between January 1, 1988 and January 1, 1992 shall
corporations. GOCCs may in turn offset these obligations against the be considered as the first elections provided for in this Code. The term
outstanding advances made by the National Treasury in their behalf. of office of the kabataang barangay officials elected within the said
In the case of obligations owed by local government units to private period shall be extended correspondingly to coincide with the term of
utilities which are not indebted to any GOCC or national government office of those elected under this Code.
agency, the National Government may instead buy the obligations of the SECTION 533. Formulation of Implementing Rules and
local government units from the private utilities at a discounted rate, Regulations. – (a) Within one (1) month after the approval of this Code,
upon concurrence by the private utilities concerned. the President shall convene the Oversight Committee as herein provided
(d) Limitations. – Obligations to the Home Development and Mutual Fund for. The said Committee shall formulate and issue the appropriate rules
(Pag-IBIG), Medicare, and those pertaining to premium contributions and regulations necessary for the efficient and effective implementation
and amortization payments of salary and policy loans to the Government of any and all provisions of this Code, thereby ensuring compliance with
Service Insurance System are excluded from the coverage of this section. the principles of local autonomy as defined under the Constitution.

(e) Recovery schemes for the National Government. – Local government (b) The Committee shall be composed of the following:
units shall pay back the National Government whatever amounts were (1) The Executive Secretary, who shall be the Chairman;
advanced or offset by the National Government to settle their obligations
to GFIs, GOCCs, and private utilities. The National Government shall not (2) Three (3) members of the Senate to be appointed by the President
charge interest or penalties on the outstanding balance owed by the local of the Senate, to include the Chairman of the Committee on Local
government units. Government;
These outstanding obligations shall be restructured and an amortization (3) Three (3) members of the House of Representatives to be
schedule prepared, based on the capability of the local government unit appointed by the Speaker, to include the Chairman of the Committee
to pay, taking into consideration the amount owed to the National on Local Government;
Government.
(4) The Cabinet, represented by the following:
The National Government is hereby authorized to deduct from the
quarterly share of each local government unit in the internal revenue (i) Secretary of the Interior and Local Government;
collections an amount to be determined on the basis of the amortization (ii) Secretary of Finance;
schedule of the local unit concerned: Provided, That such amount shall
not exceed five percent (5%) of the monthly internal revenue allotment (iii) Secretary of Budget and Management; and
of the local government unit concerned.
(5) One (1) representative from each of the following:
As incentive to debtor-local government units to increase the efficiency
(i) The League of Provinces;
of their fiscal administration, the National Government shall write off the
debt of the local government unit concerned at the rate of five percent (ii) The League of Cities;
(5%) for every one percent (1%) increase in revenues generated by such
local government unit over that of the preceding year. For this purpose, (iii) The League of Municipalities; and
the annual increase in local revenue collection shall be computed starting (iv) The Liga ng mga Barangay.
from the year 1988.
(c) The Committee shall submit its report and recommendation to the
(f) Appropriations. – Such amount as may be necessary to implement President within two (2) months after its organization. If the President
the provisions of this section shall be included in the annual General fails to act within thirty (30) days from receipt thereof, the
Appropriations Act. recommendation of the Oversight Committee shall be deemed approved.
SECTION 532. Elections for the Sangguniang Thereafter, the Committee shall supervise the transfer of such powers
Kabataan. – (a) The first elections for the sangguniang kabataan to be and functions mandated under this Code to the local government units,
conducted under this Code shall be held thirty (30) days after the next together with the corresponding personnel, properties, assets and
local elections: Provided, That, the regular elections for the sangguniang liabilities of the offices or agencies concerned, with the least possible
kabataan shall be held on the first Monday of May 1996: Provided, disruptions to existing programs and projects. The Committee shall
further, That the succeeding regular elections for the sangguniang likewise recommend the corresponding appropriations necessary to
kabataan shall be held every three (3) years thereafter: Provided, finally, effect the said transfer.
That the national, special metropolitan, provincial, city and municipal For this purpose, the services of a technical staff shall be enlisted from
federations of the sangguniang kabataan shall conduct the election of among the qualified employees of Congress, the government offices, and
their respective officers thirty (30) days after the May 1996 sangguniang the leagues constituting the Committee.
kabataan elections on dates to be scheduled by the Commission on
Elections. (d) The funding requirements and the secretariat of the Committee shall
be provided by the Office of the Executive Secretary.
The conduct of the sangguniang kabataan elections shall be under the
supervision of the Commission on Elections. (e) The sum of Five million pesos (P5,000,000.00), which shall be
charged against the Contingent Fund, is hereby allotted to the Committee
The Omnibus Election Code shall govern the elections of the sangguniang to fund the undertaking of an information campaign on this Code. The
kabataan. Committee shall formulate the guidelines governing the conduct of said
(b) The amount pertaining to the ten percent (10%) allocation for the campaign, and shall determine the national agencies or offices to be
kabataang barangay as provided for in Section 103 of Batas Pambansa involved for this purpose.
Blg. 337 is hereby reappropriated for the purpose of funding the first TITLE IV
elections mentioned above. The balance of said funds, if there be any
after the said elections, shall be administered by the Presidential Council Final Provisions
for Youth Affairs for the purpose of training the newly elected
sangguniang kabataan officials in the discharge of their functions. SECTION 534. Repealing Clause. – (a) Batas Pambansa
Blg. 337, otherwise known as the Local Government Code, Executive
(c) For the regular elections of the sangguniang kabataan, funds shall be Order No. 112 (1987), and Executive Order No. 319 (1988) are hereby
taken from the ten percent (10%) of the barangay funds reserved for repealed.
the sangguniang kabataan, as provided for in Section 328 of this Code.

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

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