REPUBLIC ACT NO.

7160 (b) There shall be established in every local

AN ACT PROVIDING FOR A LOCAL government unit an accountable, efficient,
GOVERNMENT CODE OF 1991 and dynamic organizational structure and
BOOK I operating mechanism that will meet the
General Provisions priority needs and service requirements of
TITLE I its communities;
Basic Principles (c) Subject to civil service law, rules and
CHAPTER I regulations, local officials and employees
The Code: Policy and Application paid wholly or mainly from local funds shall
SECTION 1. Title. – This Act shall be known be appointed or removed, according to
and cited as the “Local Government Code merit and fitness, by the appropriate
of 1991”. appointing authority;
(d) The vesting of duty, responsibility, and
SECTION 2. Declaration of Policy. – (a) It is accountability in local government units
hereby declared the policy of the State that shall be accompanied with provision for
the territorial and political subdivisions of reasonably adequate resources to discharge
the State shall enjoy genuine and their powers and effectively carry out their
meaningful local autonomy to enable them functions; hence, they shall have the power
to attain their fullest development as self- to create and broaden their own sources of
reliant communities and make them more revenue and the right to a just share in
effective partners in the attainment of national taxes and an equitable share in
national goals. Toward this end, the State the proceeds of the utilization and
shall provide for a more responsive and development of the national wealth within
accountable local government structure their respective areas;
instituted through a system of (e) Provinces with respect to component
decentralization whereby local government cities and municipalities, and cities and
units shall be given more powers, municipalities with respect to component
authority, responsibilities, and resources. barangays, shall ensure that the acts of
The process of decentralization shall their component units are within the scope
proceed from the National Government to of their prescribed powers and functions;
the local government units. (f) Local government units may group
(b) It is also the policy of the State to themselves, consolidate or coordinate their
ensure the accountability of local efforts, services, and resources for
government units through the institution purposes commonly beneficial to them;
of effective mechanisms of recall, initiative (g) The capabilities of local government
and referendum. units, especially the municipalities and
(c) It is likewise the policy of the State to barangays, shall be enhanced by providing
require all national agencies and offices to them with opportunities to participate
conduct periodic consultations with actively in the implementation of national
appropriate local government units, programs and projects;
nongovernmental and people’s (h) There shall be a continuing mechanism
organizations, and other concerned sectors to enhance local autonomy not only by
of the community before any project or legislative enabling acts but also by
program is implemented in their respective administrative and organizational reforms;
jurisdictions. (i) Local government units shall share with
the national government the responsibility
SECTION 3. Operative Principles of in the management and maintenance of
Decentralization. – The formulation and ecological balance within their territorial
implementation of policies and measures jurisdiction, subject to the provisions of
on local autonomy shall be guided by the this Code and national policies;
following operative principles: (j) Effective mechanisms for ensuring the
(a) There shall be an effective allocation accountability of local government units to
among the different local government units their respective constituents shall be
of their respective powers, functions, strengthened in order to upgrade
responsibilities, and resources; continually the quality of local leadership;
(k) The realization of local autonomy shall out of contracts or any other source of
be facilitated through improved prestation involving a local government
coordination of national government unit shall be governed by the original terms
policies and programs and extension of and conditions of said contracts or the law
adequate technical and material assistance in force at the time such rights were
to less developed and deserving local vested; and
government units; (e) In the resolution of controversies
(l) The participation of the private sector in arising under this Code where no legal
local governance, particularly in the provision or jurisprudence applies, resort
delivery of basic services, shall be may be had to the customs and traditions
encouraged to ensure the viability of local in the place where the controversies take
autonomy as an alternative strategy for place.
sustainable development; and
(m) The national government shall ensure CHAPTER II
that decentralization contributes to the General Powers and Attributes of Local
continuing improvement of the Government Units
performance of local government units and
the quality of community life. SECTION 6. Authority to Create Local
SECTION 4. Scope of Application. – This Government Units. – A local government
Code shall apply to all provinces, cities, unit may be created, divided, merged,
municipalities, barangays, and other abolished, or its boundaries substantially
political subdivisions as may be created by altered either by law enacted by Congress
law, and, to the extent herein provided, to in the case of a province, city,
officials, offices, or agencies of the national municipality, or any other political
government. subdivision, or by ordinance passed by the
SECTION 5. Rules of Interpretation. – In sangguniang panlalawigan or sangguniang
the interpretation of the provisions of this panlungsod concerned in the case of a
Code, the following rules shall apply: barangay located within its territorial
(a) Any provision on a power of a local jurisdiction, subject to such limitations
government unit shall be liberally and requirements prescribed in this Code.
interpreted in its favor, and in case of SECTION 7. Creation and Conversion. – As
doubt, any question thereon shall be a general rule, the creation of a local
resolved in favor of devolution of powers government unit or its conversion from one
and of the lower local government unit. level to another level shall be based on
Any fair and reasonable doubt as to the verifiable indicators of viability and
existence of the power shall be interpreted projected capacity to provide services, to
in favor of the local government unit wit:
concerned; (a) Income. – It must be sufficient, based on
(b) In case of doubt, any tax ordinance or acceptable standards, to provide for all
revenue measure shall be construed strictly essential government facilities and services
against the local government unit enacting and special functions commensurate with
it, and liberally in favor of the taxpayer. the size of its population, as expected of
Any tax exemption, incentive or relief the local government unit concerned;
granted by any local government unit (b) Population. – It shall be determined as
pursuant to the provisions of this Code the total number of inhabitants within the
shall be construed strictly against the territorial jurisdiction of the local
person claiming it. government unit concerned; and
(c) The general welfare provisions in this (c) Land Area. – It must be contiguous,
Code shall be liberally interpreted to give unless it comprises two (2) or more islands
more powers to local government units in or is separated by a local government unit
accelerating economic development and independent of the others; properly
upgrading the quality of life for the people identified by metes and bounds with
in the community; technical descriptions; and sufficient to
(d) Rights and obligations existing on the provide for such basic services and
date of effectivity of this Code and arising
facilities to meet the requirements of its Commission on Elections (COMELEC)
populace. within one hundred twenty (120) days from
Compliance with the foregoing indicators the date of effectivity of the law or
shall be attested to by the Department of ordinance effecting such action, unless said
Finance (DOF), the National Statistics law or ordinance fixes another date.
Office (NSO), and the Lands Management
Bureau (LMB) of the Department of
Environment and Natural Resources SECTION 11. Selection and Transfer of
(DENR). Local Government Site, Offices and
Facilities. – (a) The law or ordinance
SECTION 8. Division and Merger. – Division creating or merging local government units
and merger of existing local government shall specify the seat of government from
units shall comply with the same where governmental and corporate services
requirements herein prescribed for their shall be delivered. In selecting said site,
creation: Provided, however, That such factors relating to geographical centrality,
division shall not reduce the income, accessibility, availability of transportation
population, or land area of the local and communication facilities, drainage and
government unit or units concerned to less sanitation, development and economic
than the minimum requirements prescribed progress, and other relevant considerations
in this Code: Provided, further, That the shall be taken into account.
income classification of the original local (b) When conditions and developments in
government unit or units shall not fall the local government unit concerned have
below its current income classification significantly changed subsequent to the
prior to such division. establishment of the seat of government,
The income classification of local its sanggunian may, after public hearing
government units shall be updated within and by a vote of two-thirds (2/3) of all its
six (6) months from the effectivity of this members, transfer the same to a site better
Code to reflect the changes in their suited to its needs. Provided, however,
financial position resulting from the That no such transfer shall be made
increased revenues as provided herein. outside the territorial boundaries of the
local government unit concerned.
SECTION 9. Abolition of Local Government The old site, together with the
Units. – A local government unit may be improvements thereon, may be disposed of
abolished when its income, population, or by sale or lease or converted to such other
land area has been irreversibly reduced to use as the sanggunian concerned may deem
less than the minimum standards beneficial to the local government unit
prescribed for its creation under Book III of concerned and its inhabitants.
this Code, as certified by the national (c) Local government offices and facilities
agencies mentioned in Section 7 hereof to shall not be transferred, relocated, or
Congress or to the sanggunian concerned, converted to other uses unless public
as the case may be. hearings are first conducted for the
The law or ordinance abolishing a local purpose and the concurrence of the
government unit shall specify the province, majority of all the members of the
city, municipality, or barangay with which sanggunian concerned is obtained.
the local government unit sought to be
abolished will be incorporated or merged. SECTION 12. Government Centers. –
Provinces, cities, and municipalities shall
SECTION 10. Plebiscite Requirement. – No endeavor to establish a government center
creation, division, merger, abolition, or where offices, agencies, or branches of the
substantial alteration of boundaries of local National Government, local government
government units shall take effect unless units, or government-owned or -controlled
approved by a majority of the votes cast in corporations may, as far as practicable, be
a plebiscite called for the purpose in the located. In designating such a center, the
political unit or units directly affected. local government unit concerned shall take
Said plebiscite shall be conducted by the into account the existing facilities of
national and local agencies and offices (1) City and municipal barangays, upon
which may serve as the government center recommendation of the sangguniang
as contemplated under this Section. The barangay concerned;
National Government, local government (2) City, municipal and barangay roads,
unit or government-owned or -controlled avenues, boulevards, thoroughfares, and
corporation concerned shall bear the bridges;
expenses for the construction of its (3) City and municipal public elementary,
buildings and facilities in the government secondary and vocational or technical
center. schools, post-secondary and other tertiary
schools;
SECTION 13. Naming of Local Government (4) City and municipal hospitals, health
Units and Public Places, Streets and centers and other health facilities; and
Structures. – (a) The sangguniang (5) Any other public place or building
panlalawigan may, in consultation with the owned by the municipal government.
Philippine Historical Commission (PHC),  (d) None of the foregoing local government
change the name of the following within its units, institutions, places, or buildings
territorial jurisdiction: shall be named after a living person, nor
(1) Component cities and municipalities, may a change of name be made unless for a
upon the recommendation of the justifiable reason and, in any case, not
sanggunian concerned; oftener than once every ten (10) years. The
(2) Provincial roads, avenues, boulevards, name of a local government unit or a public
thoroughfares, and bridges; place, street or structure with historical,
(3) Public vocational or technical schools cultural, or ethnic significance shall not be
and other post-secondary and tertiary changed, unless by a unanimous vote of the
schools; sanggunian concerned and in consultation
(4) Provincial hospitals, health centers, and with the PHC.
other health facilities; and (e) A change of name of a public school
(5) Any other public place or building shall be made only upon the
owned by the provincial government. recommendation of the local school board
(b) The sanggunians of highly urbanized concerned.
cities and of component cities whose (f) A change of name of public hospitals,
charters prohibit their voters from voting health centers, and other health facilities
for provincial elective officials, hereinafter shall be made only upon the
referred to in this Code as independent recommendation of the local health board
component cities, may, in consultation concerned.
with the Philippine Historical Commission, (g) The change of name of any local
change the name of the following within its government unit shall be effective only
territorial jurisdiction: upon ratification in a plebiscite conducted
(1) City barangays, upon the for the purpose in the political unit directly
recommendation of the sangguniang affected.
barangay concerned; (h) In any change of name, the Office of the
(2) City roads, avenues, boulevards, President, the representative of the
thoroughfares, and bridges; legislative district concerned, and the
(3) Public elementary, secondary and Bureau of Posts shall be notified.
vocational or technical schools, community
colleges and non-chartered colleges; SECTION 14. Beginning of Corporate
(4) City hospitals, health centers and other Existence. – When a new local government
health facilities; and unit is created, its corporate existence
(5) Any other public place or building shall commence upon the election and
owned by the city government. qualification of its chief executive and a
(c) The sanggunians of component cities majority of the members of its sanggunian,
and municipalities may, in consultation unless some other time is fixed therefor by
with the Philippine Historical Commission, the law or ordinance creating it.
change the name of the following within its
territorial jurisdiction:
SECTION 15. Political and Corporate (i) Agricultural support services which
Nature of Local Government Units. – Every include planting materials distribution
local government unit created or system and operation of farm produce
recognized under this Code is a body collection and buying stations;
politic and corporate endowed with powers (ii) Health and social welfare services which
to be exercised by it in conformity with include maintenance of barangay health
law. As such, it shall exercise powers as a center and day-care center;
political subdivision of the national (iii) Services and facilities related to
government and as a corporate entity general hygiene and sanitation,
representing the inhabitants of its beautification, and solid waste collection;
territory. (iv) Maintenance of katarungang
pambarangay;
SECTION 16. General Welfare. – Every local (v) Maintenance of barangay roads and
government unit shall exercise the powers bridges and water supply systems;
expressly granted, those necessarily (vi) Infrastructure facilities such as multi-
implied therefrom, as well as powers purpose hall, multi-purpose pavement,
necessary, appropriate, or incidental for its plaza, sports center, and other similar
efficient and effective governance, and facilities;
those which are essential to the promotion (vii) Information and reading center; and
of the general welfare. Within their (viii) Satellite or public market, where
respective territorial jurisdictions, local viable;
government units shall ensure and support, (2) For a Municipality:
among other things, the preservation and (i) Extension and on-site research services
enrichment of culture, promote health and and facilities related to agriculture and
safety, enhance the right of the people to a fishery activities which include dispersal of
balanced ecology, encourage and support livestock and poultry, fingerlings, and
the development of appropriate and self- other seeding materials for aquaculture;
reliant scientific and technological palay, corn, and vegetable seed farms;
capabilities, improve public morals, medicinal plant gardens; fruit tree,
enhance economic prosperity and social coconut, and other kinds of seedling
justice, promote full employment among nurseries; demonstration farms; quality
their residents, maintain peace and order, control of copra and improvement and
and preserve the comfort and convenience development of local distribution channels,
of their inhabitants. preferably through cooperatives;
interbarangay irrigation systems; water and
SECTION 17. Basic Services and Facilities. soil resource utilization and conservation
– (a) Local government units shall endeavor projects; and enforcement of fishery laws
to be self-reliant and shall continue in municipal waters including the
exercising the powers and discharging the conservation of mangroves;
duties and functions currently vested upon (ii) Pursuant to national policies and
them. They shall also discharge the subject to supervision, control and review
functions and responsibilities of national of the DENR, implementation of
agencies and offices devolved to them community-based forestry projects which
pursuant to this Code. Local government include integrated social forestry programs
units shall likewise exercise such other and similar projects; management and
powers and discharge such other functions control of communal forests with an area
and responsibilities as are necessary, not exceeding fifty (50) square kilometers;
appropriate, or incidental to efficient and establishment of tree parks, greenbelts,
effective provision of the basic services and and similar forest development projects;
facilities enumerated herein. (iii) Subject to the provisions of Title Five,
(b) Such basic services and facilities Book I of this Code, health services which
include, but are not limited to, the include the implementation of programs
following: and projects on primary health care,
(1) For a Barangay: maternal and child care, and communicable
and non-communicable disease control
services; access to secondary and tertiary (3) For a Province:
health services; purchase of medicines, (i) Agricultural extension and on-site
medical supplies, and equipment needed to research services and facilities which
carry out the services herein enumerated; include the prevention and control of plant
(iv) Social welfare services which include and animal pests and diseases; dairy farms,
programs and projects on child and youth livestock markets, animal breeding
welfare, family and community welfare, stations, and artificial insemination
women’s welfare, welfare of the elderly and centers; and assistance in the organization
disabled persons;  community-based of farmers’ and fishermen’s cooperatives
rehabilitation programs for vagrants, and other collective organizations, as well
beggars, street children, scavengers, as the transfer of appropriate technology;
juvenile delinquents, and victims of drug (ii) Industrial research and development
abuse; livelihood and other pro-poor services, as well as the transfer of
projects; nutrition services; and family appropriate technology;
planning services; (iii) Pursuant to national policies and
(v) Information services which include subject to supervision, control and review
investments and job placement information of the DENR, enforcement of forestry laws
systems, tax and marketing information limited to community-based forestry
systems, and maintenance of a public projects, pollution control law, small-scale
library; mining law, and other laws on the
(vi) Solid waste disposal system or protection of the environment; and mini-
environmental management system and hydroelectric projects for local purposes;
services or facilities related to general (iv) Subject to the provisions of Title Five,
hygiene and sanitation; Book I of this Code, health services which
(vii) Municipal buildings, cultural centers, include hospitals and other tertiary health
public parks including freedom parks, services;
playgrounds, and other sports facilities and (v) Social welfare services which include
equipment, and other similar facilities; programs and projects on rebel returnees
(viii) Infrastructure facilities intended and evacuees; relief operations; and
primarily to service the needs of the population development services;
residents of the municipality and which are (vi) Provincial buildings, provincial jails,
funded out of municipal funds including, freedom parks and other public assembly
but not limited to, municipal roads and areas, and similar facilities;
bridges; school buildings and other (vii) Infrastructure facilities intended to
facilities for public elementary and service the needs of the residents of the
secondary schools; clinics, health centers province and which are funded out of
and other health facilities necessary to provincial funds including, but not limited
carry out health services; communal to, provincial roads and bridges; inter-
irrigation, small water impounding projects municipal waterworks, drainage and
and other similar projects; fish ports; sewerage, flood control, and irrigation
artesian wells, spring development, systems; reclamation projects; and similar
rainwater collectors and water supply facilities;
systems; seawalls, dikes, drainage and (viii) Programs and projects for low-cost
sewerage, and flood control; traffic signals housing and other mass dwellings, except
and road signs; and similar facilities; those funded by the Social Security System
(ix) Public markets, slaughterhouses and (SSS), Government Service Insurance
other municipal enterprises; System (GSIS), and the Home Development
(x) Public cemetery; Mutual Fund (HDMF); Provided, That
(xi) Tourism facilities and other tourist national funds for these programs and
attractions, including the acquisition of projects shall be equitably allocated among
equipment, regulation and supervision of the regions in proportion to the ratio of the
business concessions, and security services homeless to the population;
for such facilities; and (ix) Investment support services, including
(xii) Sites for police and fire stations and access to credit financing;
substations and municipal jail;
(x) Upgrading and modernization of tax government unit when such services or
information and collection services facilities are not made available or, if made
through the use of computer hardware and available, are inadequate to meet the
software and other means; requirements of its inhabitants.
(xi) Inter-municipal telecommunications (g) The basic services and facilities
services, subject to national policy hereinabove enumerated shall be funded
guidelines; and from the share of local government units in
(xii) Tourism development and promotion the proceeds of national taxes and other
programs; local revenues and funding support from
(4) For a City: the National Government, its
All the services and facilities of the instrumentalities and government-owned
municipality and province, and in addition or -controlled corporations which are
thereto, the following: tasked by law to establish and maintain
(i) Adequate communication and such services or facilities. Any fund or
transportation facilities; resource available for the use of local
(ii) Support for education, police and fire government units shall be first allocated
services and facilities; for the provision of basic services or
(c) Notwithstanding the provisions of facilities enumerated in subsection (b)
subsection (b) hereof, public works and hereof before applying the same for other
infrastructure projects and other facilities, purposes, unless otherwise provided in this
programs and services funded by the Code.
National Government under the annual (h) Regional offices of national agencies or
General Appropriations Act, other special offices whose functions are devolved to
laws, pertinent executive orders, and those local government units as provided herein
wholly or partially funded from foreign shall be phased out within one (1) year
sources, are not covered under this from the approval of this Code. Said
section, except in those cases where the national agencies and offices may establish
local government unit concerned is duly such field units as may be necessary for
designated as the implementing agency for monitoring purposes and providing
such projects, facilities, programs, and technical assistance to local government
services. units. The properties, equipment, and
(d) The designs, plans, specifications, other assets of these regional offices shall
testing of materials, and the procurement be distributed to the local government
of equipment and materials from both units in the region in accordance with the
foreign and local sources necessary for the rules and regulations issued by the
provision of the foregoing services and Oversight Committee created under this
facilities shall be undertaken by the local Code.
government unit concerned, based on (i) The devolution contemplated in this
national policies, standards and guidelines. Code shall include the transfer to local
(e) National agencies or offices concerned government units of the records,
shall devolve to local government units the equipment, and other assets and personnel
responsibility for the provision of basic of national agencies and offices
services and facilities enumerated in this corresponding to the devolved powers,
section within six (6) months after the functions, and responsibilities.
effectivity of this Code. Personnel of said national agencies or
As used in this Code, the term “devolution” offices shall be absorbed by the local
refers to the act by which the National government units to which they belong or
Government confers power and authority in whose areas they are assigned to the
upon the various local government units to extent that it is administratively viable as
perform specific functions and determined by the said oversight
responsibilities. committee: Provided, That the rights
(f) The National Government or the next accorded to such personnel pursuant to
higher level of local government unit may civil service law, rules and regulations shall
provide or augment the basic services and not be impaired: Provided, further, That
facilities assigned to a lower level of local regional directors who are career executive
service officers and other officers of similar landless, upon payment of just
rank in the said regional offices who compensation, pursuant to the provisions
cannot be absorbed by the local of the Constitution and pertinent laws:
government unit shall be retained by the Provided, however, That the power of
National Government, without any eminent domain may not be exercised
diminution of rank, salary or tenure. unless a valid and definite offer has been
(j) To ensure the active participation of the previously made to the owner, and such
private sector in local governance, local offer was not accepted: Provided, further,
government units may, by ordinance, sell, That the local government unit may
lease, encumber, or otherwise dispose of immediately take possession of the
public economic enterprises owned by property upon the filing of the
them in their proprietary capacity. expropriation proceedings and upon
Costs may also be charged for the delivery making a deposit with the proper court of
of basic services or facilities enumerated in at least fifteen percent (15%) of the fair
this section. market value of the property based on the
current tax declaration of the property to
SECTION 18. Power to Generate and Apply be expropriated: Provided, finally, That, the
Resources. – Local government units shall amount to be paid for the expropriated
have the power and authority to establish property shall be determined by the proper
an organization that shall be responsible court, based on the fair market value at the
for the efficient and effective time of the taking of the property.
implementation of their development
plans, program objectives and priorities; to SECTION 20. Reclassification of Lands. – (a)
create their own sources of revenues and to A city or municipality may, through an
levy taxes, fees, and charges which shall ordinance passed by the sanggunian after
accrue exclusively for their use and conducting public hearings for the purpose,
disposition and which shall be retained by authorize the reclassification of
them; to have a just share in national taxes agricultural lands and provide for the
which shall be automatically and directly manner of their utilization or disposition in
released to them without need of any the following cases: (1) when the land
further action; to have an equitable share ceases to be economically feasible and
in the proceeds from the utilization and sound for agricultural purposes as
development of the national wealth and determined by the Department of
resources within their respective territorial Agriculture or (2) where the land shall have
jurisdictions including sharing the same substantially greater economic value for
with the inhabitants by way of direct residential, commercial, or industrial
benefits; to acquire, develop, lease, purposes, as determined by the sanggunian
encumber, alienate, or otherwise dispose of concerned: Provided, That such
real or personal property held by them in reclassification shall be limited to the
their proprietary capacity and to apply following percentage of the total
their resources and assets for productive, agricultural land area at the time of the
developmental, or welfare purposes, in the passage of the ordinance:
exercise or furtherance of their (1) For highly urbanized and independent
governmental or proprietary powers and component cities, fifteen percent (15%);
functions and thereby ensure their (2) For component cities and first to the
development into self-reliant communities third class municipalities, ten percent
and active participants in the attainment (10%); and
of national goals. (3) For fourth to sixth class municipalities,
five percent (5%): Provided, further, That
SECTION 19. Eminent Domain. – A local agricultural lands distributed to agrarian
government unit may, through its chief reform beneficiaries pursuant to Republic
executive and acting pursuant to an Act Numbered Sixty-six hundred fifty-seven
ordinance, exercise the power of eminent (R.A. No. 6657).  otherwise known as “The
domain for public use, or purpose or Comprehensive Agrarian Reform Law”,
welfare for the benefit of the poor and the shall not be affected by the said
reclassification and the conversion of such closed permanently without provision for
lands into other purposes shall be governed its transfer or relocation to a new site.
by Section 65 of said Act. (c) Any national or local road, alley, park,
(b) The President may, when public interest or square may be temporarily closed during
so requires and upon recommendation of an actual emergency, or fiesta celebrations,
the National Economic and Development public rallies, agricultural or industrial
Authority, authorize a city or municipality fairs, or an undertaking of public works and
to reclassify lands in excess of the limits highways, telecommunications, and
set in the next preceding paragraph. waterworks projects, the duration of which
(c) The local government units shall, in shall be specified by the local chief
conformity with existing laws, continue to executive concerned in a written order:
prepare their respective comprehensive Provided, however, That no national or
land use plans enacted through zoning local road, alley, park, or square shall be
ordinances which shall be the primary and temporarily closed for athletic, cultural, or
dominant bases for the future use of land civic activities not officially sponsored,
resources: Provided, That the requirements recognized, or approved by the local
for food production, human settlements, government unit concerned.
and industrial expansion shall be taken (d) Any city, municipality, or barangay
into consideration in the preparation of may, by a duly enacted ordinance,
such plans. temporarily close and regulate the use of
(d) Where approval by a national agency is any local street, road, thoroughfare, or any
required for reclassification, such approval other public place where shopping malls,
shall not be unreasonably withheld. Failure Sunday, flea or night markets, or shopping
to act on a proper and complete application areas may be established and where goods,
for reclassification within three (3) months merchandise, foodstuffs, commodities, or
from receipt of the same shall be deemed articles of commerce may be sold and
as approval thereof. dispensed to the general public.
(e) Nothing in this Section shall be SECTION 22. Corporate Powers. – (a) Every
construed as repealing, amending, or local government unit, as a corporation,
modifying in any manner the provisions of shall have the following powers:
R.A. No. 6657. (1) To have continuous succession in its
corporate name;
SECTION 21. Closure and Opening of (2) To sue and be sued;
Roads. – (a) A local government unit may, (3) To have and use a corporate seal;
pursuant to an ordinance, permanently or (4) To acquire and convey real or personal
temporarily close or open any local road, property;
alley, park, or square falling within its (5) To enter into contracts; and
jurisdiction: Provided, however, That in (6) To exercise such other powers as are
case of permanent closure, such ordinance granted to corporations, subject to the
must be approved by at least two-thirds limitations provided in this Code and other
(2/3) of all the members of the sanggunian, laws.
and when necessary, an adequate (b) Local government units may continue
substitute for the public facility that is using, modify, or change their existing
subject to closure is provided. corporate seals: Provided, That newly
(b) No such way or place or any part thereof established local government units or those
shall be permanently closed without without corporate seals may create their
making provisions for the maintenance of own corporate seals which shall be
public safety therein. A property thus registered with the Department of the
permanently withdrawn from public use Interior and Local Government: Provided,
may be used or conveyed for any purpose further, That any change of corporate seal
for which other real property belonging to shall also be registered as provided hereon.
the local government unit concerned may (c) Unless otherwise provided in this Code,
be lawfully used or conveyed: Provided, no contract may be entered into by the
however, That no freedom park shall be local chief executive in behalf of the local
government unit without prior
authorization by the sanggunian
concerned. A legible copy of such contract
shall be posted at a conspicuous place in
the provincial capitol or the city, municipal
or barangay hall.
(d) Local government units shall enjoy full
autonomy in the exercise of their
proprietary functions and in the
management of their economic enterprises,
subject to the limitations provided in this
Code and other applicable laws.
SECTION 23. Authority to Negotiate and
Secure Grants. – Local chief executives
may, upon authority of the sanggunian,
negotiate and secure financial grants or
donations in kind, in support of the basic
services or facilities enumerated under
Section 17 hereof, from local and foreign
assistance agencies without necessity of
securing clearance or approval therefor
from any department, agency, or office of
the National Government or from any
higher local government unit: Provided,
That projects financed by such grants or
assistance with national security
implications shall be approved by the
national agency concerned: Provided,
further, That when such national agency
fails to act on the request for approval
within thirty (30) days from receipt
thereof, the same shall be deemed
approved.
The local chief executive shall, within
thirty (30) days upon signing of such grant
agreement or deed of donation, report the
nature, amount, and terms of such
assistance to both Houses of Congress and
the President.
SECTION 24. Liability for Damages. – Local
government units and their officials are not
exempt from liability for death or injury to
persons or damage to property.
Flores vs drilon 223568 concerned, for his information and
Marquez vs comelec 243533 guidance, monthly reports including duly
Grego vs comelec 274481 certified budgetary allocations and
Borja vs com 294 1 expenditures.
Paranaque vs
Quitinco vs manila SECTION 26. Duty of National Government
Agencies in the Maintenance of Ecological
CHAPTER III Balance.
Intergovernmental Relations
– It shall be the duty of every national
ARTICLE I agency or government-owned or -controlled
National Government and Local corporation authorizing or involved in the
Government Units planning and implementation of any
project or program that may cause
SECTION 25. National Supervision over pollution, climatic change, depletion of
Local Government Units. – non-renewable resources, loss of cropland,
rangeland, or forest cover, and extinction
(a) Consistent with the basic policy on local of animal or plant species,
autonomy, the President shall exercise  to consult with the local government
general supervision over local government units, non-governmental
units to ensure that their acts are within organizations, and other sectors
the scope of their prescribed powers and concerned and
functions.  explain the goals and objectives of
The President shall exercise the project or program, its impact
supervisory authority directly over upon the people and the community
provinces, highly urbanized cities, and in terms of environmental or
independent component cities; through the ecological balance, and the measures
province with respect to component cities that will be undertaken to prevent or
and municipalities; and through the city minimize the adverse effects thereof.
and municipality with respect to
barangays. SECTION 27. Prior Consultations Required.
– No project or program shall be
(b) National agencies and offices with implemented by government authorities
project implementation functions shall unless the consultations mentioned in
coordinate with one another and with the Sections 2 (c) and 26 hereof are complied
local government units concerned in the with, and prior approval of the sanggunian
discharge of these functions. They shall concerned is obtained: Provided, That
ensure the participation of local occupants in areas where such projects are
government units both in the planning and to be implemented shall not be evicted
implementation of said national projects. unless appropriate relocation sites have
been provided, in accordance with the
(c) The President may, upon request of the provisions of the Constitution.
local government unit concerned, direct
the appropriate national agency to provide
financial, technical, or other forms of ARTICLE II
assistance to the local government unit. Relations with the Philippine National
Such assistance shall be extended at no Police
extra cost to the local government unit SECTION 28. Powers of Local Chief
concerned. Executives over the Units of the Philippine
National Police. – The extent of operational
(d) National agencies and offices including supervision and control of local chief
government-owned or -controlled executives over the police force, fire
corporations with field units or branches in protection unit, and jail management
a province, city, or municipality shall personnel assigned in their respective
furnish the local chief executive jurisdictions shall be governed by the
provisions of Republic Act Numbered Sixty- legal officer, and in the absence of the
nine hundred seventy-five (R.A. No. 6975), latter, that of the provincial prosecutor on
otherwise known as “The Department of any legal question affecting the
the Interior and Local Government Act of municipality.
1990”, and the rules and regulations issued
pursuant thereto. SECTION 32. City and Municipal
Supervision over Their Respective
Barangays. – The city or municipality,
ARTICLE III – Just Read through the city or municipal mayor
Inter-Local Government Relations concerned, shall exercise general
SECTION 29. Provincial Relations with supervision over component barangays to
Component Cities and Municipalities. – ensure that said barangays act within the
scope of their prescribed powers and
The province, through the governor, shall functions.
ensure that every component city and
municipality within its territorial SECTION 33. Cooperative Undertakings
jurisdiction acts within the scope of its Among Local Government Units. – Local
prescribed powers and functions. Highly government units may, through
urbanized cities and independent appropriate ordinances, group themselves,
component cities shall be independent of consolidate, or coordinate their efforts,
the province. services, and resources for purposes
commonly beneficial to them. In support of
such undertakings, the local government
SECTION 30. Review of Executive Orders. – units involved may, upon approval by the
(a) Except as otherwise provided under the sanggunian concerned after a public
Constitution and special statutes, the hearing conducted for the purpose,
governor shall review all executive orders contribute funds, real estate, equipment,
promulgated by the component city or and other kinds of property and appoint or
municipal mayor within his jurisdiction. assign personnel under such terms and
The city or municipal mayor shall review conditions as may be agreed upon by the
all executive orders promulgated by the participating local units through
punong barangay within his jurisdiction. Memoranda of Agreement.
Copies of such orders shall be
forwarded to the governor or the city CHAPTER IV
or municipal mayor, as the case may Relations With People’s and Non-
be, within three (3) days from their Governmental Organizations
issuance. In all instances of review,
the local chief executive concerned SECTION 34. Role of People’s and Non-
shall ensure that such executive governmental Organizations. – Local
orders are within the powers granted government units shall promote the
by law and in conformity with establishment and operation of people’s
provincial, city, or municipal and non-governmental organizations to
ordinances. become active partners in the pursuit of
local autonomy.
(b) If the governor or the city or municipal
mayor fails to act on said executive orders SECTION 35. Linkages with People’s and
within thirty (30) days after their Non-governmental Organizations. – Local
submission, the same shall be deemed government units may enter into joint
consistent with law and therefore valid. ventures and such other cooperative
arrangements with people’s and non-
SECTION 31. Submission of Municipal governmental organizations to engage in
Questions to the Provincial Legal Officer or the delivery of certain basic services,
Prosecutor. – In the absence of a municipal capability-building and livelihood projects,
legal officer, the municipal government and to develop local enterprises designed
may secure the opinion of the provincial to improve productivity and income,
diversify agriculture, spur rural Representatives of the Commission on
industrialization, promote ecological Audit shall observe the proceedings of such
balance, and enhance the economic and committee and shall certify that the rules
social well-being of the people. and procedures for prequalification, bids
and awards have been complied with.
SECTION 36. Assistance to People’s and
Non-governmental Organizations. – A local (b) The agenda and other information
government unit may, through its local relevant to the meetings of such
chief executive and with the concurrence committee shall be deliberated upon by the
of the sanggunian concerned, provide committee at least one (1) week before the
assistance, financial or otherwise, to such holding of such meetings.
people’s and non-governmental
organizations for economic, socially- (c) All meetings of the committee shall be
oriented, environmental, or cultural held in the provincial capitol or the city or
projects to be implemented within its municipal hall. The minutes of such
territorial jurisdiction. meetings of the committee and any
decision made therein shall be duly
CHAPTER V recorded, posted at a prominent place in
Local Prequalification, Bids and Awards the provincial capitol or the city or
Committee municipal hall, and delivered by the most
expedient means to elective local officials
SECTION 37. Local Prequalification, Bids concerned.
and Awards Committee (Local PBAC). –
SECTION 38. Local Technical Committee. –
(a) There is hereby created a local (a) There is hereby created a local technical
prequalification, bids and awards committee in every province, city and
committee in every province, city, and municipality to provide technical
municipality, which shall be primarily assistance to the local prequalification,
responsible for the conduct of bids and awards committees. It shall be
prequalification of contractors, bidding, composed of the provincial, city or
evaluation of bids, and the municipal engineer, the local planning and
recommendation of awards concerning development coordinator, and such other
local infrastructure projects. The governor officials designated by the local
or the city or municipal mayor shall act as prequalification, bids and awards
the chairman with the following as committee.
members: (b) The chairman of the local technical
(1) The chairman of the appropriations committee shall be designated by the local
committee of the sanggunian prequalification, bids and awards
concerned; committee and shall attend its meeting in
(2) A representative of the minority party order to present the reports and
in the sanggunian concerned, if any, or recommendations of the local technical
if there be none, one (1) chosen by said committee.
sanggunian from among its members;
(3) The local treasurer; TITLE II
(4) Two (2) representatives of non- Elective Officials
governmental organizations that are
represented in the local development CHAPTER I
council concerned, to be chosen by the Qualifications and Election
organizations themselves; and
(5) Any practicing certified public SECTION 39. Qualifications. –
accountant from the private sector, to (a) An elective local official must be
be designated by the local chapter of  a citizen of the Philippines;
the Philippine Institute of Certified  a registered voter in the
Public Accountants, if any. barangay, municipality, city,
or province or, in the case of a
 member of the sangguniang (c) Those convicted by final judgment for
panlalawigan, sangguniang violating the oath of allegiance to the
panlungsod, or sangguniang Republic;
bayan,  the district where he (d) Those with dual citizenship;
intends to be elected; (e) Fugitives from justice in criminal or
 a resident therein for at least non-political cases here or abroad;
one (1) year immediately (f) Permanent residents in a foreign country
preceding the day of the or those who have acquired the right to
election; and reside abroad and continue to avail of
 able to read and write Filipino the same right after the effectivity of
or any other local language or this Code; and
dialect. (g) The insane or feeble-minded.

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

SECTION 45. Permanent Vacancies in the SECTION 46. Temporary Vacancy in the
Sanggunian. – (a) Permanent vacancies in Office of the Local Chief Executive. – (a)
the sanggunian where automatic When the governor, city or municipal
succession provided above do not apply mayor, or punong barangay is temporarily
shall be filled by appointment in the incapacitated to perform his duties for
following manner: physical or legal reasons such as, but not
(1) The President, through the Executive limited to, leave of absence, travel abroad,
Secretary, in the case of the sangguniang and suspension from office, the vice-
panlalawigan and the sangguniang governor, city or municipal vice-mayor, or
panlungsod of highly urbanized cities and the highest ranking sangguniang barangay
independent component cities; member shall automatically exercise the
(2) The governor, in the case of the powers and perform the duties and
sangguniang panlungsod of component functions of the local chief executive
cities and the sangguniang bayan; concerned, except the power to appoint,
(3) The city or municipal mayor, in the case suspend, or dismiss employees which can
of sangguniang barangay, upon only be exercised if the period of temporary
recommendation of the sangguniang incapacity exceeds thirty (30) working
barangay concerned. days.
(b) Said temporary incapacity shall
(b) Except for the sangguniang barangay, terminate upon submission to the
only the nominee of the political party appropriate sanggunian of a written
under which the sanggunian member declaration by the local chief executive
concerned had been elected and whose concerned that he has reported back to
elevation to the position next higher in office. In cases where the temporary
rank created the last vacancy in the incapacity is due to legal causes, the local
sanggunian shall be appointed in the chief executive concerned shall also submit
manner hereinabove provided. The necessary documents showing that said
appointee shall come from the same legal causes no longer exist.
political party as that of the sanggunian (c) When the incumbent local chief
member who caused the vacancy and shall executive is traveling within the country
serve the unexpired term of the vacant but outside his territorial jurisdiction for a
office. In the appointment herein period not exceeding three (3) consecutive
mentioned, a nomination and a certificate days, he may designate in writing the
of membership of the appointee from the officer-in-charge of the said office. Such
highest official of the political party authorization shall specify the powers and
concerned are conditions sine qua non, and functions that the local official concerned
any appointment without such nomination shall exercise in the absence of the local
and certification shall be null and void ab chief executive except the power to
initio and shall be a ground for appoint, suspend, or dismiss employees.
administrative action against the official (d) In the event, however, that the local
responsible therefor. chief executive concerned fails or refuses
(c) In case the permanent vacancy is to issue such authorization, the vice-
caused by a sanggunian member who does governor, the city or municipal vice-mayor,
not belong to any political party, the local or the highest ranking sangguniang
chief executive shall, upon barangay member, as the case may be, shall
recommendation of the sanggunian have the right to assume the powers,
duties, and functions of the said office on
the fourth (4th) day of absence of the said of the sangguniang panlalawigan; the city
local chief executive, subject to the vice-mayor, of the sangguniang
limitations provided in subsection (c) panlungsod; the municipal vice-mayor of
hereof. the sangguniang bayan; and the punong
(e) Except as provided above, the local chief barangay, of the sangguniang barangay. The
executive shall in no case authorize any presiding officer shall vote only to break a
local official to assume the powers, duties, tie.
and functions of the office, other than the
vice-governor, the city or municipal vice- (b) In the event of the inability of the
mayor, or the highest ranking sangguniang regular presiding officer to preside at a
barangay member, as the case may be. sanggunian session, the members present
and constituting a quorum shall elect from
SECTION 47. Approval of Leaves of among themselves a temporary presiding
Absence. – (a) Leaves of absence of local officer. He shall certify within ten (10) days
elective officials shall be approved as from the passage of ordinances enacted and
follows: resolutions adopted by the sanggunian in
(1) Leaves of absence of the governor and the session over which he temporarily
the mayor of a highly urbanized city or an presided.
independent component city shall be
approved by the President or his duly SECTION 50. Internal Rules of Procedure. –
authorized representative; (a) On the first regular session following the
(2) Leaves of absence of vice-governor or a election of its members and within ninety
city or municipal vice-mayor shall be (90) days thereafter, the sanggunian
approved by the local chief executive concerned shall adopt or update its
concerned: Provided, That the leaves of existing rules of procedure.
absence of the members of the sanggunian
and its employees shall be approved by the (b) The rules of procedure shall provided for
vice-governor or city or municipal vice- the following:
mayor concerned; (1) The organization of the
(3) Leaves of absence of the component city sanggunian and the election of its
or municipal mayor shall be approved by officers as well as the creation of
the governor; and standing committees which shall
(4) Leaves of absence of a punong barangay include, but shall not be limited
shall be approved by the city or municipal to, the committees on
mayor: Provided, That leaves of absence of appropriations, women and family,
sangguniang barangay members shall be human rights, youth and sports
approved by the punong barangay. development, environmental
(b) Whenever the application for leave of protection, and cooperatives; the
absence hereinabove specified is not acted general jurisdiction of each
upon within five (5) working days after committee; and the election of the
receipt thereof, the application for leave of chairman and members of each
absence shall be deemed approved. committee;
(2) The order and calendar of
CHAPTER III business for each session;
Local Legislation (3) The legislative process;
SECTION 48. Local Legislative Power. – (4) The parliamentary procedures
Local legislative power shall be exercised which include the conduct of
by the sangguniang panlalawigan for the members during sessions;
province; the sangguniang panlungsod for (5) The discipline of members for
the city; the sangguniang bayan for the disorderly behavior and absences
municipality; and the sangguniang without justifiable cause for four
barangay for the barangay. (4) consecutive sessions, for which
they may be censured,
SECTION 49. Presiding Officer. – (a) The reprimanded, or excluded from the
vice-governor shall be the presiding officer session, suspended for not more
 than sixty (60) days, or expelled: (b) The disclosure required under this Act
Provided, That the penalty of shall be made in writing and submitted to
suspension or expulsion shall the secretary of the sanggunian or the
require the concurrence of at least secretary of the committee of which he is a
two-thirds (2/3) vote of all the member. The disclosure shall, in all cases,
sanggunian members: Provided, form part of the record of the proceedings
further, That a member convicted and shall be made in the following manner:
by final judgment to imprisonment (1) Disclosure shall be made before the
of at least one (1) year for any member participates in the deliberations
crime involving moral turpitude on the ordinance or resolution under
shall be automatically expelled consideration: Provided, That, if the
from the sanggunian; and member did not participate during the
(6) Such other rules as the deliberations, the disclosure shall be made
sanggunian may adopt. before voting on the ordinance or
resolution on second and third readings;
SECTION 51. Full Disclosure of Financial and
and Business Interests of Sanggunian (2) Disclosure shall be made when a
Members. – (a) Every sanggunian member member takes a position or makes a
shall, upon assumption to office, make a privilege speech on a matter that may
full disclosure of his business and financial affect the business interest, financial
interests.  He shall also disclose any connection, or professional relationship
business, financial, or professional described herein.
relationship or any relation by affinity or
consanguinity within the fourth civil SECTION 52. Sessions. –
degree, which he may have with any
person, firm, or entity affected by any (a) On the first day of the session
ordinance or resolution under immediately following the election of its
consideration by the sanggunian of which members, the sanggunian shall, by
he is a member, which relationship may resolution, fix the day, time, and place of
result in conflict of interest. Such its regular sessions. The minimum number
relationship shall include: of regular sessions shall be once a week for
the sangguniang panlalawigan, sangguniang
(1) Ownership of stock or capital, or panlungsod, and sangguniang bayan, and
investment, in the entity or firm to twice a month for the sangguniang
which the ordinance or resolution barangay.
may apply; and
(b) When public interest so demands,
(2) Contracts or agreements with any special sessions may be called by the local
person or entity which the ordinance chief executive or by a majority of the
or resolution under consideration members of the sanggunian.
may affect.
(c) All sanggunian sessions shall be open to
In the absence of a specific the public unless a closed-door session is
constitutional or statutory provision ordered by an affirmative vote of majority
applicable to this situation, “conflict of the members present, there being a
of interest” refers in general to one quorum, in the public interest or for
where it may be reasonably deduced reasons of security, decency, or morality.
that a member of a sanggunian may No two (2) sessions, regular or special, may
not act in the public interest due to be held in a single day.
some private, pecuniary, or other
personal considerations that may (d) In the case of special sessions of the
tend to affect his judgment to the sanggunian, a written notice to the
prejudice of the service or the public. members shall be served personally at the
member’s usual place of residence at least
twenty-four (24) hours before the special otherwise, he shall veto it and return the
session is held. same with his objections to the
sanggunian, which may proceed to
Unless otherwise concurred in by two- reconsider the same. The sanggunian
thirds (2/3) vote of the sanggunian concerned may override the veto of the
members present, there being a quorum, no local chief executive by two-thirds (2/3)
other matters may be considered at a vote of all its members, thereby making the
special session except those stated in the ordinance or resolution effective for all
notice. legal intents and purposes.
(e) Each sanggunian shall keep a journal
and record of its proceedings which may be (b) The veto shall be communicated by the
published upon resolution of the local chief executive concerned to the
sanggunian concerned. sanggunian within fifteen (15) days in the
case of a province, and ten (10) days in the
SECTION 53. Quorum. – (a) A majority of all case of a city or a municipality; otherwise,
the members of the sanggunian who have the ordinance shall be deemed approved as
been elected and qualified shall constitute if he had signed it.
a quorum to transact official business.
Should a question of quorum be raised (c) Ordinances enacted by the sangguniang
during a session, the presiding officer shall barangay shall, upon approval by the
immediately proceed to call the roll of the majority of all its members, be signed by
members and thereafter announce the the punong barangay.
results.

(b) Where there is no quorum, the presiding SECTION 55. Veto Power of the Local Chief
officer may declare a recess until such time Executive. –
as a quorum is constituted, or a majority of
the members present may adjourn from day (a) The local chief executive may veto any
to day and may compel the immediate ordinance of the sangguniang panlalawigan,
attendance of any member absent without sangguniang panlungsod, or sangguniang
justifiable cause by designating a member bayan on the ground that it is ultra vires or
of the sanggunian, to be assisted by a prejudicial to the public welfare, stating his
member or members of the police force reasons therefor in writing.
assigned in the territorial jurisdiction of
the local government unit concerned, to (b) The local chief executive, except the
arrest the absent member and present him punong barangay, shall have the power to
at the session. veto any particular item or items of an
appropriations ordinance, an ordinance or
(c) If there is still no quorum despite the resolution adopting a local development
enforcement of the immediately preceding plan and public investment program, or an
subsection, no business shall be transacted. ordinance directing the payment of money
The presiding officer, upon proper motion or creating liability. In such a case, the
duly approved by the members present, veto shall not affect the item or items
shall then declare the session adjourned for which are not objected to. The vetoed item
lack of quorum. or items shall not take effect unless the
sanggunian overrides the veto in the
SECTION 54. Approval of Ordinances. – (a) manner herein provided; otherwise, the
Every ordinance enacted by the item or items in the appropriations
sangguniang panlalawigan, sangguniang ordinance of the previous year
panlungsod, or sangguniang bayan shall be corresponding to those vetoed, if any, shall
presented to the provincial governor or city be deemed reenacted.
or municipal mayor, as the case may be. If
the local chief executive concerned (c) The local chief executive may veto an
approves the same, he shall affix his ordinance or resolution only once. The
signature on each and every page thereof; sanggunian may override the veto of the
local chief executive by two-thirds (2/3)
vote of all its members, thereby making the (a) Within ten (10) days after its enactment,
ordinance effective even without the the sangguniang barangay shall furnish
approval of the local chief executive copies of all barangay ordinances to the
concerned. sangguniang panlungsod or sangguniang
bayan concerned for review as to whether
SECTION 56. Review of Component City the ordinance is consistent with law and
and Municipal Ordinances or Resolutions city or municipal ordinances.
by the Sangguniang Panlalawigan. –
(b) If the sangguniang panlungsod or
(a) Within three (3) days after approval, the sangguniang bayan, as the case may be,
secretary to the sangguniang panlungsod or fails to take action on barangay ordinances
sangguniang bayan shall forward to the within thirty (30) days from receipt
sangguniang panlalawigan for review, thereof, the same shall be deemed
copies of approved ordinances and the approved.
resolutions approving the local
development plans and public investment (c) If the sangguniang panlungsod or
programs formulated by the local sangguniang bayan, as the case may be,
development councils. finds the barangay ordinances inconsistent
with law or city or municipal ordinances,
(b) Within thirty (30) days after the receipt the sanggunian concerned shall, within
of copies of such ordinances and thirty (30) days from receipt thereof, return
resolutions, the sangguniang panlalawigan the same with its comments and
shall examine the documents or transmit recommendations to the sangguniang
them to the provincial attorney, or if there barangay concerned for adjustment,
be none, to the provincial prosecutor for amendment, or modification; in which
prompt examination. The provincial case, the effectivity of the barangay
attorney or provincial prosecutor shall, ordinance is suspended until such time as
within a period of ten (10) days from the revision called for is effected.
receipt of the documents, inform the
sangguniang panlalawigan in writing of his SECTION 58. Enforcement of Disapproved
comments or recommendations, which may Ordinances or Resolutions. – Any attempt
be considered by the sangguniang to enforce any ordinance or any resolution
panlalawigan in making its decision. approving the local development plan and
public investment program, after the
(c) If the sangguniang panlalawigan finds disapproval thereof, shall be sufficient
that such an ordinance or resolution is ground for the suspension or dismissal of
beyond the power conferred upon the the official or employee concerned.
sangguniang panlungsod or sangguniang
bayan concerned, it shall declare such SECTION 59. Effectivity of Ordinances or
ordinance or resolution invalid in whole or Resolutions. –
in part. The sangguniang panlalawigan shall
enter its action in the minutes and shall (a) Unless otherwise stated in the ordinance
advise the corresponding city or municipal or the resolution approving the local
authorities of the action it has taken. development plan and public investment
program, the same shall take effect after
(d) If no action has been taken by the ten (10) days from the date a copy thereof
sangguniang panlalawigan within thirty (30) is posted in a bulletin board at the
days after submission of such an ordinance entrance of the provincial capitol or city,
or resolution, the same shall be presumed municipal, or barangay hall, as the case
consistent with law and therefore valid. may be, and in at least two (2) other
conspicuous places in the local government
SECTION 57. Review of Barangay unit concerned.
Ordinances by the Sangguniang Panlungsod
or Sangguniang Bayan. –
(b) The secretary to the sanggunian (d) Commission of any offense involving
concerned shall cause the posting of an moral turpitude or an offense punishable
ordinance or resolution in the bulletin by at least prision mayor;
board at the entrance of the provincial (e) Abuse of authority;
capitol and the city, municipal, or barangay (f) Unauthorized absence for fifteen (15)
hall in at least two (2) conspicuous places consecutive working days, except in the
in the local government unit concerned not case of members of the sangguniang
later than five (5) days after approval panlalawigan, sangguniang panlungsod,
thereof. sangguniang bayan, and sangguniang
The text of the ordinance or resolution barangay;
shall be disseminated and posted in (g) Application for, or acquisition of, foreign
Filipino or English and in the language or citizenship or residence or the status of
dialect understood by the majority of the an immigrant of another country; and
people in the local government unit (h) Such other grounds as may be provided
concerned, and the secretary to the in this Code and other laws.
sanggunian shall record such fact in a book
kept for the purpose, stating the dates of An elective local official may be removed
approval and posting. from office on the grounds enumerated
above by order of the proper court.
(c) The gist of all ordinances with penal
sanctions shall be published in a newspaper Condonation doctrine – abandoned
of general circulation within the province
where the local legislative body concerned SECTION 61. Form and Filing of
belongs. In the absence of any newspaper of Administrative Complaints. –
general circulation within the province,
posting of such ordinances shall be made in A verified complaint against any erring
all municipalities and cities of the province local elective official shall be prepared as
where the sanggunian of origin is situated. follows:

(a) A complaint against any elective official

(d) In the case of highly urbanized and of a province, a highly urbanized city, an
independent component cities, the main independent component city or
features of the ordinance or resolution duly component city shall be filed before the
enacted or adopted shall, in addition to Office of the President;
being posted, be published once in a local (b) A complaint against any elective official
newspaper of general circulation within the of a municipality shall be filed before the
city: Provided, That in the absence thereof sangguniang panlalawigan whose
the ordinance or resolution shall be decision may be appealed to the Office of
published in any newspaper of general the President; and
circulation. (c) A complaint against any elective
barangay official shall be filed before the
CHAPTER IV sangguniang panlungsod or sangguniang
Disciplinary Actions bayan concerned whose decision shall be
SECTION 60. Grounds for Disciplinary final and executory.
Actions. – An elective local official may be
disciplined, suspended, or removed from SECTION 62. Notice of Hearing. – (a) Within
office on any of the following grounds: seven (7) days after the administrative
complaint is filed, the Office of the
(a) Disloyalty to the Republic of the President or the sanggunian concerned, as
Philippines; the case may be, shall require the
(b) Culpable violation of the Constitution; respondent to submit his verified answer
(c) Dishonesty, oppression, misconduct in within fifteen (15) days from receipt
office, gross negligence, or dereliction of thereof, and commence the investigation of
duty; the case within ten (10) days after receipt
of such answer of the respondent.
(b) When the respondent is an elective is due to his fault, neglect, or request,
official of a province or highly urbanized other than the appeal duly filed, the
city, such hearing and investigation shall duration of such delay shall not be counted
be conducted in the place where he renders in computing the time of termination of
or holds office. For all other local elective the case.
officials, the venue shall be the place where (d) Any abuse of the exercise of the power
the sanggunian concerned is located. of preventive suspension shall be penalized
(c) However, no investigation shall be held as abuse of authority.
within ninety (90) days immediately prior SECTION 64. Salary of Respondent Pending
to any local election, and no preventive Suspension. – The respondent official
suspension shall be imposed within the preventively suspended from office shall
said period. If preventive suspension has receive no salary or compensation during
been imposed prior to the 90-day period such suspension; but upon subsequent
immediately preceding local election, it exoneration and reinstatement, he shall be
shall be deemed automatically lifted upon paid full salary or compensation including
the start of aforesaid period. such emoluments accruing during such
suspension.
SECTION 63. Preventive Suspension. – (a) SECTION 65. Rights of Respondent. – The
Preventive suspension may be imposed: respondent shall be accorded full
(1) By the President, if the respondent is an opportunity to appear and defend himself
elective official of a province, a highly in person or by counsel, to confront and
urbanized or an independent component cross-examine the witnesses against him,
city; and to require the attendance of witnesses
(2) By the governor, if the respondent is an and the production of documentary
elective official of a component city or evidence in his favor through the
municipality; or compulsory process of subpoena or
(3) By the mayor, if the respondent is an subpoena duces tecum.
elective official of the barangay. SECTION 66. Form and Notice of Decision.
(b) Preventive suspension may be imposed – (a) The investigation of the case shall be
at any time after the issues are joined, terminated within ninety (90) days from
when the evidence of guilt is strong, and the start thereof. Within thirty (30) days
given the gravity of the offense, there is after the end of the investigation, the
great probability that the continuance in Office of the President or the sanggunian
office of the respondent could influence the concerned shall render a decision in
witnesses or pose a threat to the safety and writing stating clearly and distinctly the
integrity of the records and other evidence: facts and the reasons for such decision.
Provided, That, any single preventive Copies of said decision shall immediately
suspension of local elective officials shall be furnished the respondent and all
not extend beyond sixty (60) days: interested parties.
Provided, further, That in the event that (b) The penalty of suspension shall not
several administrative cases are filed exceed the unexpired term of the
against an elective official, he cannot be respondent or a period of six (6) months for
preventively suspended for more than every administrative offense, nor shall said
ninety (90) days within a single year on the penalty be a bar to the candidacy of the
same ground or grounds existing and respondent so suspended as long as he
known at the time of the first suspension. meets the qualifications required for the
(c) Upon expiration of the preventive office.
suspension, the suspended elective official (c) The penalty of removal from office as a
shall be deemed reinstated in office result of an administrative investigation
without prejudice to the continuation of shall be considered a bar to the candidacy
the proceedings against him, which shall be of the respondent for any elective position.
terminated within one hundred twenty SECTION 67. Administrative Appeals. –
(120) days from the time he was formally Decisions in administrative cases may,
notified of the case against him. However, within thirty (30) days from receipt
if the delay in the proceedings of the case thereof, be appealed to the following:
(a) The sangguniang panlalawigan, in the (2) At least twenty percent (20%) in
case of decisions of the sangguniang the case of local government
panlungsod of component cities and the units with a voting population of
sangguniang bayan; and at least twenty thousand (20,000)
(b) The Office of the President, in the case but not more than seventy-five
of decisions of the sangguniang thousand (75,000): Provided,
panlalawigan and the sangguniang That in no case shall the required
panlungsod of highly urbanized cities and petitioners be less than five
independent component cities. thousand (5,000);
Decisions of the Office of the President
shall be final and executory. (3) At least fifteen percent (15%) in
the case of local government
SECTION 68. Execution Pending Appeal. – units with a voting population of
An appeal shall not prevent a decision from at least seventy-five thousand
becoming final or executory. The (75,000) but not more than three
respondent shall be considered as having hundred thousand (300,000):
been placed under preventive suspension Provided, however, That in no
during the pendency of an appeal in the case shall the required number of
event he wins such appeal. In the event the petitioners be less than fifteen
appeal results in an exoneration, he shall thousand (15,000); and
be paid his salary and such other
emoluments during the pendency of the (4) At least ten percent (10%) in the
appeal. case of local government units
with a voting population of over
CHAPTER V three hundred thousand
Recall (300,000): Provided, however,
SECTION 69. By Whom Exercised. – The That in no case shall the required
power of recall for loss of confidence shall petitioners be less than forty-five
be exercised by the registered voters of a thousand (45,000).
local government unit to which the local
elective official subject to such recall (b) The process of recall shall be effected in
belongs. accordance with the following procedure:
(1) A written petition for recall duly
-amended the original LGC signed by the representatives of
the petitioners before the
SECTION 70. Initiation of the Recall election registrar or his
Process. – representative, shall be filed with
(a) The Recall of any elective provincial, the Comelec through its office in
city, municipal or barangay official the local government unit
shall be commenced by a petition of a concerned.
registered voter in the local (2) The petition to recall shall contain the
government unit concerned and following:
supported by the registered voters in (a) The names and addresses of the
the local government unit concerned petitioners written in legible form and their
during the election in which the local signatures;
official sought to be recalled was (b) The barangay, city or municipality, local
elected subject to the following legislative district and the province to
percentage requirements: which the petitioners belong;
(1) At least twenty-five percent (25%) (c) The name of the official sought to be
in the case of local government recalled; and
units with a voting population of (d) A brief narration of the reasons and
not more than twenty thousand justifications therefore.
(20,000); (1) The Comelec shall, within fifteen (15)
days from the filing of the petition, certify
to the sufficiency of the required number
of signatures. Failure to obtain the required article, in the case of the barangay, city or
number of signatures automatically municipal officials, and forty-five (45) days
nullifies the petition; in the case of provincial officials. The
officials sought to be recalled shall
(2) If the petition is found to be sufficient automatically be considered as duly
in form, the Comelec or its duly authorized registered candidate or candidates to the
representative shall, within three (3) days pertinent positions and, like other
from the issuance of the certification, candidates, shall be entitled to be voted
provide the official sought to be recalled a upon.
copy of the petition, cause its publication
in a national newspaper of general SECTION 72. Effectivity of Recall. – The
circulation and a newspaper of general recall of an elective local official shall be
circulation in the locality, once a week for effective only upon the election and
three (3) consecutive weeks at the expense proclamation of a successor in the person
of the petitioners and at the same time of the candidate receiving the highest
post copies thereof in public and number of votes cast during the election on
conspicuous places for a period of not less recall. Should the official sought to be
than ten (10) days nor more than twenty recalled receive the highest number of
(20) days, for the purpose of allowing votes, confidence in him is thereby
interested parties to examine and verify affirmed, and he shall continue in office.
the validity of the petition and the
authenticity of the signatures contained SECTION 73. Prohibition from Resignation.
therein. – The elective local official sought to be
(3) The Comelec or its duly authorized recalled shall not be allowed to resign while
representatives shall, upon issuance of the recall process is in progress.
certification, proceed independently with
the verification and authentication of the SECTION 74. Limitations on Recall. – (a)
signatures of the petitioners and registered Any elective local official may be the
voters contained therein. Representatives subject of a recall election only once during
of the petitioners and the official sought to his term of office for loss of confidence.
be recalled shall be duly notified and shall (b) No recall shall take place within one (1)
have the right to participate therein as year from the date of the official’s
mere observers. The filing of any challenge assumption to office or one (1) year
or protest shall be allowed within the immediately preceding a regular local
period provided in the immediately election.
preceding paragraph and shall be ruled
upon with finality within fifteen (15) days SECTION 75. Expenses Incident to Recall
from the date of filing of such protest or Elections. – All expenses incident to recall
challenge; elections shall be borne by the COMELEC.
(4) Upon the lapse of the aforesaid period, For this purpose, there shall be included in
the Comelec or its duly authorized the annual General Appropriations Act a
representative shall announce the contingency fund at the disposal of the
acceptance of candidates to the position COMELEC for the conduct of recall
and thereafter prepare the list of elections.
candidates which shall include the name of
the official sought to be recalled. Next meeting
TITLE III
SECTION 71. Election on Recall. – Upon the Human Resources and Development
filing of a valid petition for recall with the
appropriate local office of the Comelec, the SECTION 76. Organizational Structure and
Comelec or its duly authorized Staffing Pattern. – Every local government
representative shall set the date of the unit shall design and implement its own
election or recall, which shall not be later organizational structure and staffing
than thirty (30) days upon the completion pattern taking into consideration its
of the procedure outlined in the preceding service requirements and financial
capability, subject to the minimum be posted notices of the vacancy in at
standards and guidelines prescribed by the least three (3) conspicuous public places
Civil Service Commission. in the local government unit concerned
for a period of not less than fifteen (15)
SECTION 77. Responsibility for Human days.
Resources and Development. – The chief (b) There shall be established in every
executive of every local government unit province, city or municipality a
shall be responsible for human resources personnel selection board to assist the
and development in his unit and shall take local chief executive in the judicious and
all personnel actions in accordance with objective selection of personnel for
the constitutional provisions on civil employment as well as for promotion,
service, pertinent laws, and rules and and in the formulation of such policies
regulations thereon, including such as would contribute to employee welfare.
policies, guidelines and standards as the (c) The personnel selection board shall be
Civil Service Commission may establish: headed by the local chief executive, and
Provided, That the local chief executive its members shall be determined by
may employ emergency or casual resolution of the sanggunian concerned.
employees or laborers paid on a daily wage A representative of the Civil Service
or piecework basis and hired through job Commission, if any, and the personnel
orders for local projects authorized by the officer of the local government unit
sanggunian concerned, without need of concerned shall be ex officio members of
approval or attestation by the Civil Service the board.
Commission: Provided, further, That the
period of employment of emergency or SECTION 81. Compensation of Local
casual laborers as provided in this section Officials and Employees. – The
shall not exceed six (6) months. compensation of local officials and
The Joint Commission on Local personnel shall be determined by the
Government Personnel Administration sanggunian concerned: Provided, That the
organized pursuant to Presidential Decree increase in compensation of elective local
Numbered Eleven Hundred thirty-six (P.D. officials shall take effect only after the
No. 1136) is hereby abolished and its terms of office of those approving such
personnel, records, equipment and other increase shall have expired: Provided,
assets transferred to the appropriate office further, That the increase in compensation
in the Civil Service Commission. of the appointive officials and employees
shall take effect as provided in the
SECTION 78. Civil Service Law, Rules and ordinance authorizing such increase:
Regulations, and Other Related Issuances. – Provided, however, That said increases
All matters pertinent to human resources shall not exceed the limitations on
and development in local government units budgetary allocations for personal services
shall be governed by the civil service law provided under Title Five, Book II of this
and such rules and regulations and other Code: Provided, finally, That such
issuances promulgated pursuant thereto, compensation may be based upon the
unless otherwise specified in this Code. pertinent provisions of Republic Act
Numbered Sixty-seven fifty-eight (R.A. No
SECTION 79. Limitation on Appointments. 6758), otherwise known as the
– No person shall be appointed in the career “Compensation and Position Classification
service of the local government if he is Act of 1989”.
related within the fourth civil degree of
consanguinity or affinity to the appointing The punong barangay, the sangguniang
or recommending authority. barangay members, the sangguniang
kabataan chairman, the barangay treasurer,
SECTION 80. Public Notice of Vacancy; and the barangay secretary shall be entitled
Personnel Selection Board. – to such compensation, allowances,
(a) Whenever a local executive decides to emoluments, and such other privileges as
fill a vacant career position, there shall
provided under Title One, Book III of this SECTION 84. Administrative Discipline. –
Code. Investigation and adjudication of
administrative complaints against
Elective local officials shall be entitled to appointive local officials and employees as
the same leave privileges as those enjoyed well as their suspension and removal shall
by appointive local officials, including the be in accordance with the civil service law
cumulation and commutation thereof. and rules and other pertinent laws. The
results of such administrative
SECTION 82. Resignation of Elective Local investigations shall be reported to the Civil
Officials. – (a) Resignations by elective local Service Commission.
officials shall be deemed effective only
upon acceptance by the following SECTION 85. Preventive Suspension of
authorities: Appointive Local Officials and
(1) The President, in the case of governors, Employees.  – (a) The local chief
vice-governors, and mayors and vice- executives may preventively suspend for
mayors of highly urbanized cities and a period not exceeding sixty (60) days
independent component cities; and subordinate official or employee
(2) The governor, in the case of municipal under his authority pending
mayors, municipal vice-mayors, city investigation if the charge against such
mayors and city vice-mayors of official or employee involves dishonesty,
component cities; oppression or grave misconduct or
(3) The sanggunian concerned, in the case neglect in the performance of duty, or if
of sanggunian members; and there is reason to believe that the
(4) The city or municipal mayor, in the case respondent is guilty of the charges which
of barangay officials. would warrant his removal from the
(b) Copies of the resignation letters of service.
elective local officials, together with the (b) Upon expiration of the preventive
action taken by the aforesaid suspension, the suspended official or
authorities, shall be furnished the employee shall be automatically
Department of the Interior and Local reinstated in office without prejudice to
Government. the continuation of the administrative
(c) The resignation shall be deemed proceedings against him until its
accepted if not acted upon by the termination. If the delay in the
authority concerned within fifteen (15) proceedings of the case is due to the
working days from receipt thereof. fault, neglect or request of the
(d) Irrevocable resignations by sanggunian respondent, the time of the delay shall
members shall be deemed accepted upon not be counted in computing the period
presentation before an open session of of suspension herein provided.
the sanggunian concerned and duly
entered in its records: Provided, SECTION 86. Administrative Investigation.
however, That this subsection does not – In any local government unit,
apply to sanggunian members who are administrative investigation may be
subject to recall elections or to cases conducted by a person or a committee duly
where existing laws prescribe the authorized by the local chief executive.
manner of acting upon such Said person or committee shall conduct
resignations. hearings on the cases brought against
appointive local officials and employees
SECTION 83. Grievance Procedure. – In and submit their findings and
every local government unit, the local chief recommendations to the local chief
executive shall establish a procedure to executive concerned within fifteen (15)
inquire into, act upon, resolve or settle days from the conclusion of the hearings.
complaints and grievances presented by The administrative cases herein mentioned
local government employees. shall be decided within ninety (90) days
from the time the respondent is formally
notified of the charges.
 a legal process at the instance of
SECTION 87. Disciplinary Jurisdiction. – the said local government unit;
Except as otherwise provided by law, the
local chief executive may impose the (4) Be a surety for any person
penalty of removal from service, demotion contracting or doing business with
in rank, suspension for not more than one the local government unit for which
(1) year without pay, fine in an amount not a surety is required; and
exceeding six (6) months salary, or
reprimand and otherwise discipline (5) Possess or use any public property
subordinate officials and employees under of the local government unit for
his jurisdiction. If the penalty imposed is private purposes.
suspension without pay for not more than
thirty (30) days, his decision shall be final. (b) All other prohibitions governing the
If the penalty imposed is heavier than conduct of national public officers
suspension of thirty (30) days, the decision relating to prohibited business and
shall be appealable to the Civil Service pecuniary interest so provided for under
Commission, which shall decide the appeal Republic Act Numbered Sixty-seven
within thirty (30) days from receipt thirteen (R.A. No. 6713) otherwise known
thereof. as the “Code of Conduct and Ethical
Standards for Public Officials and
SECTION 88. Execution Pending Appeal. – Employees” and other laws shall also be
An appeal shall not prevent the execution applicable to local government officials
of a decision of removal or suspension of a and employees.
respondent-appellant. In case the
respondent-appellant is exonerated, he SECTION 90. Practice of Profession. –
shall be reinstated to his position with all (a) All governors, city and municipal
the rights and privileges appurtenant mayors are prohibited from practicing
thereto from the time he had been deprived their profession or engaging in any
thereof. occupation other than the exercise of
their functions as local chief executives.
SECTION 89. Prohibited Business and (b) Sanggunian members may practice their
Pecuniary Interest. – professions, engage in any occupation,
(a) It shall be unlawful for any local or teach in schools except during session
government official or employee, directly hours: Provided, That sanggunian
or indirectly, to: members who are also members of the
(1) Engage in any business transaction Bar shall not:
with the local government unit in (1) Appear as counsel before any court
which he is an official or employee in any civil case wherein a local
or over which he has the power of government unit or any office,
supervision, or with any of its agency, or instrumentality of the
authorized boards, officials, agents, government is the adverse party;
or attorneys, whereby money is to (2) Appear as counsel in any criminal
be paid, or property or any other case wherein an officer or employee
thing of value is to be transferred, of the national or local government
directly or indirectly, out of the is accused of an offense committed
resources of the local government in relation to his office.
unit to such person or firm; (3) Collect any fee for their
(2) Hold such interests in any cockpit appearance in administrative
or other games licensed by a local proceedings involving the local
government unit; government unit of which he is an
(3) Purchase any real estate or other official; and
property forfeited in favor of such (4) Use property and personnel of the
local government unit for unpaid government except when the
taxes or assessment, or by virtue of sanggunian member concerned is
 defending the interest of the SECTION 94. Appointment of Elective and
government. Appointive Local Officials; Candidates Who
(c) Doctors of medicine may practice their Lost in an Election. – (a) No elective or
profession even during official hours of appointive local official shall be eligible for
work only on occasions of emergency: appointment or designation in any capacity
Provided, That the officials concerned do to any public office or position during his
not derive monetary compensation tenure.
therefrom. Unless otherwise allowed by law or by the
primary functions of his position, no
SECTION 91. Statement of Assets and elective or appointive local official shall
Liabilities. – (a) Officials and employees of hold any other office or employment in the
local government units shall file sworn government or any subdivision, agency or
statements of assets, liabilities and net instrumentality thereof, including
worth, lists of relatives within the fourth government-owned or -controlled
civil degree of consanguinity or affinity in corporations or their subsidiaries;
government service, financial and business (b) Except for losing candidates in barangay
interests, and personnel data sheets as elections, no candidate who lost in any
required by law. election shall, within one (1) year after
such election, be appointed to any office in
SECTION 92. Oath of Office. – (a) All the government or any government-owned
elective and appointive local officials and or -controlled corporations or in any of
employees shall, upon assumption to their subsidiaries.
office, subscribe to an oath or affirmation SECTION 95. Additional or Double
of office in the prescribed form. The oath Compensation. – No elective or appointive
or affirmation of office shall be filed with local official or employee shall receive
the office of the local chief executive additional, double, or indirect
concerned. A copy of the oath or compensation, unless specifically
affirmation of office of all elective and authorized by law, nor accept without the
appointive local officials and employees consent of Congress, any present,
shall be preserved in the individual emoluments, office, or title of any kind
personal records file under the custody of from any foreign government. Pensions or
the personnel office, division, or section of gratuities shall not be considered as
the local government unit concerned. additional, double, or indirect
compensation.
SECTION 93. Partisan Political Activity. – SECTION 96. Permission to Leave Station.
No local official or employee in the career – (a) Provincial, city, municipal, and
civil service shall engage directly or barangay appointive officials going on
indirectly in any partisan political activity official travel shall apply and secure
or take part in any election, initiative, written permission from their respective
referendum, plebiscite, or recall, except to local chief executives before departure. The
vote, nor shall he use his official authority application shall specify the reasons for
or influence to cause the performance of such travel, and the permission shall be
any political activity by any person or given or withheld based on considerations
body. He may, however, express his views of public interest, financial capability of
on current issues, or mention the names of the local government unit concerned and
certain candidates for public office whom urgency of the travel. Should the local
he supports. Elective local officials may chief executive concerned fail to act upon
take part in partisan political and electoral such application within four (4) working
activities, but it shall be unlawful for them days from receipt thereof, it shall be
to solicit contributions from their deemed approved.
subordinates or subject these subordinates (b) Mayors of component cities and
to any of the prohibited acts under the municipalities shall secure the permission
Omnibus Election Code. of the governor concerned for any travel
outside the province.
(c) Local government officials traveling elected representative of the non-academic
abroad shall notify their respective personnel of public schools in the province,
sanggunian: Provided, That when the as members;
period of travel extends to more than three (2) The city school board shall be composed
(3) months, during periods of emergency or of the city mayor and the city
crisis or when the travel involves the use of superintendent of schools as co-chairmen;
public funds, permission from the Office of the chairman of the education committee
the President shall be secured. of the sangguniang panlungsod, the city
(d) Field officers of national agencies or treasurer, the representative of the
offices assigned in provinces, cities, and “pederasyon ng mga sangguniang
municipalities shall not leave their official kabataan” in the sangguniang panlungsod,
stations without giving prior written notice the duly elected president of the city
to the local chief executive concerned. federation of parents-teachers associations,
Such notice shall state the duration of the duly elected representative of the
travel and the name of the officer whom he teachers’ organizations in the city, and the
shall designate to act for and in his behalf duly elected representative of the non-
during his absence. academic personnel of public schools in the
city, as members; and
SECTION 97. Annual Report. – On or before (3) The municipal school board shall be
March 31 of each year, every local chief composed of the municipal mayor and the
executive shall submit an annual report to district supervisor of schools as co-
the sanggunian concerned on the socio- chairmen; the chairman of the education
economic, political and peace and order committee of the sangguniang bayan, the
conditions, and other matters concerning municipal treasurer, the representative of
the local government unit, which shall the “pederasyon ng mga sangguniang
cover the immediately preceding calendar kabataan” in the sangguniang bayan, the
year. A copy of the report shall be duly elected president of the municipal
forwarded to the Department of the federation of parent-teacher associations,
Interior and Local Government. Component the duly elected representative of the
cities and municipalities shall likewise teachers’ organizations in the municipality,
provide the sangguniang panlalawigan and the duly elected representative of the
copies of their respective annual reports. non-academic personnel of public schools
in the municipality, as members.
TITLE IV (c) In the event that a province or city has
Local School Boards two (2) or more school superintendents,
SECTION 98. Creation, Composition, and and in the event that a municipality has
Compensation. – (a) There shall be two (2) or more district supervisors, the co-
established in every province, city, or chairman of the local school board shall be
municipality a provincial, city, or determined as follows:
municipal school board, respectively. (1) The Department of Education, Culture
(b) The composition of local school boards and Sports shall designate the co-chairman
shall be as follows: for the provincial and city school boards;
(1) The provincial school board shall be and
composed of the governor and the division (2) The division superintendent of schools
superintendent of schools as co-chairman; shall designate the district supervisor who
the chairman of the education committee shall serve as co-chairman of the municipal
of the sangguniang panlalawigan, the school board.
provincial treasurer, the representative of (d) The performance of the duties and
the “pederasyon ng mga sangguniang responsibilities of the abovementioned
kabataan” in the sangguniang officials in their respective local school
panlalawigan, the duly elected president of boards shall not be delegated.
the provincial federation of parents- SECTION 99. Functions of Local School
teachers associations, the duly elected Boards. – The provincial, city or municipal
representative of the teachers’ school board shall:
organizations in the province, and the duly
(a) Determine, in accordance with the shall be supported by programs, projects,
criteria set by the Department of and activities of the school board for the
Education, Culture and Sports, the annual ensuring  fiscal year. The affirmative vote
supplementary budgetary needs for the of the majority of all the members shall be
operation and maintenance of public necessary to approve the budget.
schools within the province, city, or (c) The annual school board budget shall
municipality, as the case may be, and the give priority to the following:
supplementary local cost of meeting such (1) Construction, repair, and maintenance
needs, which shall be reflected in the form of school buildings and other facilities of
of an annual school board budget public elementary and secondary schools;
corresponding to its share of the proceeds (2) Establishment and maintenance of
of the special levy on real property extension classes where necessary; and
constituting the Special Education Fund (3) Sports activities at the division,
and such other sources of revenue as this district, municipal, and barangay levels.
Code and other laws or ordinances may SECTION 101. Compensation and
provide; Remuneration. – The co-chairmen and
(b) Authorize the provincial, city or members of the provincial, city or
municipal treasurer, as the case may be, to municipal school board shall perform their
disburse funds from the Special Education duties as such without compensation or
Fund pursuant to the budget prepared and remuneration. Members thereof who are
in accordance with existing rules and not government officials or employees shall
regulations; be entitled to necessary traveling expenses
(c) Serve as an advisory committee to the and allowances chargeable against the
sanggunian concerned on educational funds of the local school board concerned,
matters such as, but not limited to, the subject to existing accounting and auditing
necessity for and the uses of local rules and regulations.
appropriations for educational purposes;
and TITLE V
(d) Recommend changes in the names of Local Health Boards
public schools within the territorial SECTION 102. Creation and Composition. 
jurisdiction of the local government unit – (a) There shall be established a local
for enactment by the sanggunian health board in every province, city, or
concerned. municipality. The composition of the local
The Department of Education, Culture and health boards shall be as follows:
Sports shall consult the local school board (1) The provincial health board shall be
on the appointment of division headed by the governor as chairman, the
superintendents, district supervisors, provincial health officer as vice-chairman,
school principals, and other school and the chairman of the committee on
officials. health of the sangguniang panlalawigan, a
representative from the private sector or
SECTION 100. Meetings and Quorum; non-governmental organizations involved
Budget. – (a) The local school board shall in health services, and a representative of
meet at least once a month or as often as the Department of Health in the province,
may be necessary. as members;
(b) Any of the co-chairmen may call a (2) The city health board shall be headed by
meeting. A majority of all its members shall the city mayor as chairman, the city health
constitute a quorum. However, when both officer as vice-chairman, and the chairman
co-chairmen are present in a meeting, the of the committee on health of the
local chief executive concerned, as a sangguniang panlungsod, a representative
matter of protocol, shall be given from the private sector or non-
preference to preside over the meeting. governmental organizations involved in
The division superintendent, city health services, and a representative of the
superintendent or district supervisor, as Department of Health in the city, as
the case may be, shall prepare the budget members; and
of the school board concerned. Such budget
(3) The municipal health board shall be employees shall be entitled to necessary
headed by the municipal mayor as traveling expenses and allowances
chairman, the municipal health officer as chargeable against the funds of the local
vice-chairman, and the chairman of the health board concerned, subject to existing
committee on health of the sangguniang accounting and auditing rules and
bayan, a representative from the private regulations.
sector or non-governmental organizations
involved in health services, and a SECTION 105. Direct National Supervision
representative of the Department of Health and Control by the Secretary of Health. – In
in the municipality, as members. cases of epidemics, pestilence, and other
(b) The functions of the local health board widespread public health dangers, the
shall be: Secretary of Health may, upon the
(1) To propose to the sanggunian direction of the President and in
concerned, in accordance with standards consultation with the local government
and criteria set by the Department of unit concerned, temporarily assume direct
Health, annual budgetary allocations for supervision and control over health
the operation and maintenance of health operations in any local government unit for
facilities and services within the the duration of the emergency, but in no
municipality, city or province, as the case case exceeding a cumulative period of six
may be; (6) months. With the concurrence of the
(2) To serve as an advisory committee to local government unit concerned, the
the sanggunian concerned on health period for such direct national control and
matters such as, but not limited to, the supervision may be further extended.
necessity for, and application of, local
appropriations for public health purposes; TITLE VI
and Local Development Councils
(3) Consistent with the technical and SECTION 106. Local Development Councils.
administrative standards of the – (a) Each local government unit shall have
Department of Health, create committees a comprehensive multi-sectoral
which shall advise local health agencies on development plan to be initiated by its
matters such as, but not limited to, development council and approved by its
personnel selection and promotion, bids sanggunian.  For this purpose, the
and awards, grievance and complaints, development council at the provincial, city,
personnel discipline, budget review, municipal, or barangay level, shall assist
operations review and similar functions. the corresponding sanggunian in setting
the direction of economic and social
SECTION 103. Meetings and Quorum. – (a) development, and coordinating
The board shall meet at least once a month development efforts within its territorial
or as may be necessary. jurisdiction.
(b) A majority of the members of the board
shall constitute a quorum, but the SECTION 107. Composition of Local
chairman or the vice-chairman must be Development Councils. – The composition
present during meetings where budgetary of the local development council shall be as
proposals are being prepared or considered. follows:
The affirmative vote of all the majority of (a) The barangay development council shall
the members shall be necessary to approve be headed by the punong barangay and
such proposals. shall be composed of the following
members:
SECTION 104. Compensation and (1) Members of the sangguniang barangay;
Remuneration. – The chairman, vice- (2) Representatives of non-governmental
chairman, and members of the provincial, organizations operating in the barangay
city or municipal health board shall who shall constitute not less than one
perform their duties as such without fourth (¼) of the members of the fully
compensation or remuneration. Members organized council;
thereof who are not government officials or (3) A representative of the congressman.
(b) The city or municipal development (1) Formulate long-term, medium-term, and
council shall be headed by the mayor and annual socio-economic development plans
shall be composed of the following and policies;
members: (2) Formulate the medium-term and annual
(1) All punong barangays in the city or public investment programs;
municipality; (3) Appraise and prioritize socio-economic
(2) The chairman of the committee on development programs and projects;
appropriations of the sangguniang (4) Formulate local investment incentives
panlungsod or sangguniang bayan to promote the inflow and direction of
concerned; private investment capital;
(3) The congressman or his representative; (5) Coordinate, monitor, and evaluate the
and implementation of development programs
(4) Representatives of non-governmental and projects; and
organizations operating in the city or (6) Perform such other functions as may be
municipality, as the case may be, who shall provided by law or component authority.
constitute not less than one-fourth (¼) of (b) The barangay development council shall
the members of the fully organized council. exercise the following functions:
(c) The provincial development council (1) Mobilize people’s participation in local
shall be headed by the governor and shall development efforts;
be composed of the following members: (2) Prepare barangay development plans
(1) All mayors of component cities and based on local requirements;
municipalities; (3) Monitor and evaluate the
(2) The chairman of the committee on implementation of national or local
appropriations of the sangguniang programs and projects; and
panlalawigan; (4) Perform such other functions as may be
(3) The congressman or his representative; provided by law or competent authority.
and SECTION 110. Meetings and Quorum. – The
(4) Representatives of non-governmental local development council shall meet at
organizations operating in the province, least once every six (6) months or as often
who shall constitute not less than one- as may be necessary.
fourth (¼) of the members of the fully SECTION 111. Executive Committee.  – (a)
organized council. Each local development council shall
(d) The local development councils may call create an executive committee to represent
upon any local official concerned or any it and act in its behalf when it is not in
official of national agencies or offices in session. The composition of the executive
the local government unit to assist in the committee shall be as follows:
formulation of their respective (1) The executive committee of the
development plans and public investment provincial development council shall be
programs. composed of the government  as chairman,
the representative of component city and
SECTION 108. Representation of Non- municipal mayors to be chosen from among
governmental Organizations. – Within a themselves, the chairman of the committee
period of sixty (60) days from the start of on appropriations of the sangguniang
organization of local development councils, panlalawigan, the president of the
the non-governmental organizations shall provincial league of barangays, and a
choose from among themselves their representative of non-governmental
representatives to said councils. The local organizations that are represented in the
sanggunian concerned shall accredit non- council, as members;
governmental organizations subject to such (2) The executive committee of the city or
criteria as may be provided by law. municipal development council shall be
composed of the mayor as chairman, the
SECTION 109. Functions of Local chairman of the committee on
Development Councils. – (a) The provincial, appropriations of the sangguniang
city, and municipal development councils panlalawigan, the president of the city or
shall exercise the following functions: municipal league of barangays, and a
representative of non-governmental The local development plans approved by
organizations that are represented in the their respective sanggunian may be
council, as members; and integrated with the development plans of
(3) The executive committee of the the next higher level of local development
barangay development council shall be council.
composed of the punong barangay as (b) The approved development plans of
chairman, a representative of the provinces, highly-urbanized cities, and
sangguniang barangay to be chosen from independent component cities shall be
among its members, and a representative submitted to the regional development
of non-governmental organizations that are council, which shall be integrated into the
represented in the council, as members. regional development plan for submission
(b) The executive committee shall exercise to the National Economic and Development
the following powers and functions: Authority, in accordance with existing
(1) Ensure that the decision of the council laws.
are faithfully carried out and implemented; SECTION 115. Budget Information. – The
(2) Act on matters requiring immediate Department of Budget and Management
attention or action by the council; shall furnish the various local development
(3) Formulate policies, plans, and programs councils information on financial resources
based on the general principles laid down and budgetary allocations applicable to
by the council; and their respective jurisdictions to guide them
(4) Act on other matters that may be in their planning functions.
authorized by the council.
SECTION 112. Sectoral or Functional TITLE VII
Committees. – The local development Local Peace and Order Council
councils may form sectoral or functional SECTION 116. Organization. – There is
committees to assist them in the hereby established in every province, city
performance of their functions. and municipality a local peace and order
SECTION 113. Secretariat. – There is council, pursuant to Executive Order
hereby constituted for each local Numbered Three hundred nine (E.O. No.
development council a secretariat which 309), as amended, Series of 1988.
shall be responsible for providing technical The local peace and order councils shall
support, documentation of proceedings, have the same composition and functions
preparation of reports and such other as those prescribed by said executive order.
assistance as may be required in the
discharge of its functions. The local TITLE VIII
development council may avail of the Autonomous Special Economic Zones
services of any non-governmental SECTION 117. Establishment of
organization or educational or research Autonomous Special Economic Zones. –
institution for this purpose. The establishment by law of autonomous
The secretariats of the provincial, city, and special economic zones in selected areas of
municipal development councils shall be the country shall be subject to concurrence
headed by their respective planning and by the local government units included
development coordinators. The secretariat therein.
of the barangay development council shall
be headed by the barangay secretary who TITLE IX
shall be assisted by the city or municipal Other Provisions Applicable to Local
planning and development coordinator Government Units
concerned.
SECTION 114. Relation of Local CHAPTER I
Development Councils to the Sanggunian Settlement of Boundary Disputes
and the Regional Development Council. – SECTION 118. Jurisdictional Responsibility
(a) The policies, programs, and projects for Settlement of Boundary Dispute. –
proposed by local development councils Boundary disputes between and among
shall be submitted to the sanggunian local government units shall, as much as
concerned for appropriate action. possible, be settled amicably. To this end:
 the registered voters of a local government
(a) Boundary disputes involving two (2) or unit may directly propose, enact, or amend
more barangays in the same city or any ordinance.
municipality shall be referred for
settlement to the sangguniang SECTION 121. Who May Exercise. – The
panlungsod or sangguniang bayan power of local initiative and referendum
concerned. may be exercised by all registered voters of
the provinces, cities, municipalities, and
(b) Boundary disputes involving two (2) or barangays.
more municipalities within the same
province shall be referred for settlement SECTION 122. Procedure in Local
to the sangguniang panlalawigan Initiative. –
concerned. (a) Not less than one thousand (1,000)
registered voters in case of provinces and
(c) Boundary disputes involving cities, one hundred (100) in case of
municipalities or component cities of municipalities, and fifty (50) in case of
different provinces shall be jointly barangays, may file a petition with the
referred for settlement to the sanggunian concerned proposing the
sanggunians of the provinces concerned. adoption, enactment, repeal, or
(d) Boundary disputes involving a amendment of an ordinance.
component city or municipality on the
one hand and a highly urbanized city on (b) If no favorable action thereon is taken
the other, or two (2) or more highly by the sanggunian concerned within thirty
urbanized cities, shall be jointly referred (30) days from its presentation, the
for settlement to the respective proponents, through their duly authorized
sanggunians of the parties. and registered representatives, may invoke
their power of initiative, giving notice
(e) In the event the sanggunian fails to thereof to the sanggunian concerned.
effect an amicable settlement within
sixty (60) days from the date the dispute (c) The proposition shall be numbered
was referred thereto, it shall issue a serially starting from Roman numeral I.
certification to that effect. Thereafter, The COMELEC or its designated
the dispute shall be formally tried by the representative shall extend assistance in
sanggunian concerned which shall decide the formulation of the proposition.
the issue within sixty (60) days from the
date of the certification referred to (d) Two (2) or more propositions may be
above. submitted in an initiative.

SECTION 119. Appeal. – Within the time (e) Proponents shall have ninety (90) days
and manner prescribed by the Rules of in case of provinces and cities, sixty (60)
Court, any party may elevate the decision days in case of municipalities, and thirty
of the sanggunian concerned to the proper (30) days in case of barangays, from notice
Regional Trial Court having jurisdiction mentioned in subsection (b) hereof to
over the area in dispute. The Regional Trial collect the required number of signatures.
Court shall decide the appeal within one (1)
year from the filing thereof. Pending final (f) The petition shall be signed before the
resolution of the disputed area prior to the election registrar, or his designated
dispute shall be maintained and continued representatives, in the presence of a
for all legal purposes. representative of the proponent, and a
representative of the sanggunian concerned
CHAPTER II in a public place in the local government
Local Initiative and Referendum unit, as the case may be. Stations for
collecting signatures may be established in
SECTION 120. Local Initiative Defined. – as many places as may be warranted.
Local initiative is the legal process whereby
(g) Upon the lapse of the period herein ordinance approved through the system of
provided, the COMELEC, through its office initiative and referendum as herein
in the local government unit concerned, provided shall not be repealed, modified or
shall certify as to whether or not the amended by the sanggunian concerned
required number of signatures has been within six (6) months from the date of the
obtained. Failure to obtain the required approval thereof, and may be amended,
number defeats the proposition. modified or repealed by the sanggunian
within three (3) years thereafter by a vote
(h) If the required number of signatures is of three-fourths (3/4) of all its members:
obtained, the COMELEC shall then set a Provided, That in case of barangays, the
date for the initiative during which the period shall be eighteen (18) months after
proposition shall be submitted to the the approval thereof.
registered voters in the local government
unit concerned for their approval within SECTION 126. Local Referendum Defined. –
sixty (60) days from the date of Local referendum is the legal process
certification by the COMELEC, as provided whereby the registered voters of the local
in subsection government units may approve, amend or
reject any ordinance enacted by the
(g) hereof, in case of provinces and cities, sanggunian.
forty-five (45) days in case of The local referendum shall be held under
municipalities, and thirty (30) days in case the control and direction of the COMELEC
of barangays. The initiative shall then be within sixty (60) days in case of provinces
held on the date set, after which the and cities, forty-five (45) days in case of
results thereof shall be certified and municipalities and thirty (30) days in case
proclaimed by the COMELEC. of barangays.

SECTION 123. Effectivity of Local The COMELEC shall certify and proclaim
Propositions. – If the proposition is the results of the said referendum.
approved by a majority of the votes cast, it SECTION 127. Authority of Courts. –
shall take effect fifteen (15) days after Nothing in this Chapter shall prevent or
certification by the COMELEC as if preclude the proper courts from declaring
affirmative action thereon had been made null and void any proposition approved
by the sanggunian and local chief executive pursuant to this Chapter for violation of
concerned. If it fails to obtain said number the Constitution or want of capacity of the
of votes, the proposition is considered sanggunian concerned to enact the said
defeated. measure.

SECTION 124. Limitations on Local BOOK II

Initiative. – Local Taxation and Fiscal Matters
(a) The power of local initiative shall not be TITLE I
exercised more than once a year. Local Government Taxation
(b) Initiative shall extend only to subjects CHAPTER I
or matters which are within the legal General Provisions
powers of the sanggunian to enact.
(c) If at any time before the initiative is SECTION 128. Scope. – The provisions
held, the sanggunian concerned adopts herein shall govern the exercise by
in toto the proposition presented and provinces, cities, municipalities, and
the local chief executive approves the barangays of their taxing and other
same, the initiative shall be cancelled. revenue-raising powers.
However, those against such action may,
if they so desire, apply for initiative in SECTION 129. Power to Create Sources of
the manner herein provided. Revenue.  – Each local government unit
shall exercise its power to create its own
SECTION 125. Limitations upon sources of revenue and to levy taxes, fees,
Sanggunians. – Any proposition or and charges subject to the provisions
herein, consistent with the basic policy of otherwise preparing said products for
local autonomy. Such taxes, fees, and market;
charges shall accrue exclusively to the (b) “Amusement” is a pleasurable diversion
local government units. and entertainment. It is synonymous to
relaxation, avocation, pastime, or fun;
SECTION 130. Fundamental Principles. – (c) “Amusement Places” include theaters,
The following fundamental principles shall cinemas, concert halls, circuses and other
govern the exercise of the taxing and other places of amusement where one seeks
revenue-raising powers of local government admission to entertain oneself by seeing or
units: viewing the show or performances;
(a) Taxation shall be uniform in each local (d) “Business” means trade or commercial
government unit; activity regularly engaged in as a means of
(b) Taxes, fees, charges and other livelihood or with a view to profit;
impositions shall: (e) “Banks and other financial institutions”
(1) be equitable and based as far as include non-bank financial intermediaries,
practicable on the taxpayer’s ability to pay; lending investors, finance and investment
(2) be levied and collected only for public companies, pawnshops, money shops,
purposes; insurance companies, stock markets, stock
(3) not be unjust, excessive, oppressive, or brokers and dealers in securities and
confiscatory; foreign exchange, as defined under
(4) not be contrary to law, public policy, applicable laws, or rules and regulations
national economic policy, or in restraint of thereunder;
trade; (f) “Capital Investment” is the capital
(c) The collection of local taxes, fees, which a person employs in any
charges and other impositions shall in no undertaking, or which he contributes to
case be let to any private person; the capital of a partnership, corporation, or
(d) The revenue collected pursuant to the any other juridical entity or association in
provisions of this Code shall inure solely to a particular taxing jurisdiction;
the benefit of, and be subject to the (g) “Charges” refers to pecuniary liability,
disposition by, the local government unit as rents or fees against persons or
levying the tax, fee, charge or other property;
imposition unless otherwise specifically (h) “Contractor” includes persons, natural
provided herein; and, or juridical, not subject to professional tax
(e) Each local government unit shall, as far under Section 139 of this Code, whose
as practicable, evolve a progressive system activity consists essentially of the sale of
of taxation. all kinds of services for a fee, regardless of
whether or not the performance of the
SECTION 131. Definition of Terms. – When service calls for the exercise or use of the
used in this Title, the term: physical or mental faculties of such
(a) “Agricultural Product” includes the yield contractor or his employees.
of the soil, such as corn, rice, wheat, rye, As used in this section, the term
hay, coconuts, sugarcane, tobacco, root “contractor” shall include general
crops, vegetables, fruits, flowers, and their engineering, general building and specialty
by-products; ordinary salt; all kinds of fish; contractors as defined under applicable
poultry; and livestock and animal laws; filling, demolition and salvage works
products,  whether in their original form or contractors; proprietors or operators of
not. mine drilling apparatus; proprietors or
The phrase “whether in their original form operators of dockyards; persons engaged in
or not” refers to the transformation of said the installation of water system, and gas or
products by the farmer, fisherman, electric light, heat, or power; proprietors or
producer or owner through the application operators of smelting plants, engraving,
of processes to preserve or otherwise to plating, and plastic lamination
prepare said products for market such as establishments; proprietors or operators of
freezing, drying, salting, smoking, or establishments for repairing, repainting,
stripping for purposes of preserving or upholstering, washing or greasing of
vehicles, heavy equipment, vulcanizing, their common profession, no part of the
recapping and battery charging; proprietors income of which is derived from engaging
or operators of furniture shops and in any trade or business.
establishments for planing or surfacing and The term “resident foreign” when applied
recutting of lumber, and sawmills under to a corporation means a foreign
contract to saw or cut logs belonging to corporation not otherwise organized under
others; proprietors or operators of dry the laws of the Philippines but engaged in
cleaning or dyeing establishments, steam trade or business within the Philippines;
laundries, and laundries using washing (j) “Countryside and Barangay Business
machines; proprietors or owners of shops Enterprise” refers to any business entity,
for the repair of any kind of mechanical association, or cooperative registered
and electrical devices, instruments, under the provisions of Republic Act
apparatus, or furniture and shoe repairing Numbered Sixty-eight hundred ten (R.A.
by machine or any mechanical contrivance; No. 6810), otherwise known as “Magna
proprietors or operators of establishments Carta For Countryside And Barangay
or lots for parking purposes; proprietors or Business Enterprises (Kalakalan 20)”;
operators of tailor shops, dress shops, (k) “Dealer” means one whose business is to
milliners and hatters, beauty parlors, buy and sell merchandise, goods, and
barbershops, massage clinics, sauna, chattels as a merchant. He stands
Turkish and Swedish baths, slenderizing immediately between the producer or
and building salons and similar manufacturer and the consumer and
establishments; photographic studios; depends for his profit not upon the labor he
funeral parlors; proprietors or operators of bestows upon his commodities but upon
hotels, motels, and lodging houses; the skill and foresight with which he
proprietors or operators of arrastre and watches the market;
stevedoring, warehousing, or forwarding (l) “Fee” means a charge fixed by law or
establishments; master plumbers, smiths, ordinance for the regulation or inspection
and house or sign painters; printers, of a business or activity;
bookbinders, lithographers; publishers (m) “Franchise” is a right or privilege,
except those engaged in the publication or affected with public interest which is
printing of any newspaper, magazine, conferred upon private persons or
review or bulletin which appears at regular corporations, under such terms and
intervals with fixed prices for subscription conditions as the government and its
and sale and which is not devoted political subdivisions may impose in the
principally to the publication and interest of public welfare, security, and
advertisements; business agents, private safety;
detective or watchman agencies, (n) “Gross Sales or Receipts” include the
commercial and immigration brokers, and total amount of money or its equivalent
cinematographic film owners, lessors and representing the contract price,
distributors. compensation or service fee, including the
(i) “Corporation” includes partnerships, no amount charged or materials supplied with
matter how created or organized, joint- the services and deposits or advance
stock companies, joint accounts (cuentas payments actually or constructively
en participacion), associations or insurance received during the taxable quarter for the
companies but does not include general services performed or to be performed for
professional partnerships and a joint another person excluding discounts if
venture or consortium formed for the determinable at the time of sales, sales
purpose of undertaking construction return, excise tax, and value-added tax
projects or engaging in petroleum, coal, (VAT);
geothermal, and other energy operations (o) “Manufacturer” includes every person
pursuant to an operating or consortium who, by physical or chemical process,
agreement under a service contract with alters the exterior texture or form or inner
the government. General professional substance of any raw material or
partnerships are partnerships formed by manufactured or partially manufactured
persons for the sole purpose of exercising product in such manner as to prepare it for
special use or uses to which it could not opposite shores that there is less than
have been put in its original condition, or fifteen (15) kilometers of marine waters
who by any such process, alters the quality between them, the third line shall be
of any such raw material or manufactured equally distant from opposite shores of
or partially manufactured products so as to their respective municipalities;
reduce it to marketable shape or prepare it (s) “Operator” includes the owner, manager,
for any of the use of industry, or who by administrator, or any other person who
any such process, combines any such raw operates or is responsible for the operation
material or manufactured or partially of a business establishment or undertaking;
manufactured products with other (t) “Peddler” means any person who, either
materials or products of the same or of for himself or on commission, travels from
different kinds and in such manner that place to place and sells his goods or offers
the finished products of such process or to sell and deliver the same. Whether a
manufacture can be put to a special use or peddler is a wholesale peddler or a retail
uses to which such raw material or peddler of a particular commodity shall be
manufactured or partially manufactured determined from the definition of
products in their original condition could wholesale dealer or retail dealer as
not have been put, and who in addition, provided in this Title;
alters such raw material or manufactured (u) “Persons” means every natural or
or partially manufactured products, or juridical being, susceptible of rights and
combines the same to produce such obligations or of being the subject of legal
finished products for the purpose of their relations;
sale or distribution to others and not for (v) “Residents” refer to natural persons who
his own use or consumption; have their habitual residence in the
(p) “Marginal Farmer or Fisherman” refers province, city, or municipality where they
to an individual engaged in subsistence exercise their civil rights and fulfill their
farming or fishing which shall be limited to civil obligations, and to juridical persons
the sale, barter or exchange of agricultural for which the law or any other provision
or marine products produced by himself creating or recognizing them fixes their
and his immediate family; residence in a particular province, city, or
(q) “Motor Vehicle” means any vehicle municipality. In the absence of such law,
propelled by any power other than juridical persons are residents of the
muscular power using the public roads, but province, city, or municipality where they
excluding road rollers, trolley cars, street- have their legal residence or principal place
sweepers, sprinklers, lawn mowers, of business or where they conduct their
bulldozers, graders, fork-lifts, amphibian principal business or occupation;
trucks, and cranes if not used on public (w) “Retail” means a sale where the
roads, vehicles which run only on rails or purchaser buys the commodity for his own
tracks, and tractors, trailers, and traction consumption, irrespective of the quantity
engines of all kinds used exclusively for of the commodity sold;
agricultural purposes; (x) “Vessel” includes every type of boat,
(r) “Municipal Waters” includes not only craft, or other artificial contrivance used,
streams, lakes, and tidal waters within the or capable of being used, as a means of
municipality, not being the subject of transportation on water;
private ownership and not comprised (y) “Wharfage” means a fee assessed against
within the national parks, public forest, the cargo of a vessel engaged in foreign or
timber lands, forest reserves or fishery domestic trade based on quantity, weight,
reserves, but also marine waters included or measure received and/or discharged by
between two lines drawn perpendicularly to vessel; and
the general coastline from points where the (z) “Wholesale” means a sale where the
boundary lines of the municipality or city purchaser buys or imports the commodities
touch the sea at low tide and a third line for resale to persons other than the end
parallel with the general coastline and user regardless of the quantity of the
fifteen (15) kilometers from it. Where two transaction.
(2) municipalities are so situated on the
SECTION 132. Local Taxing Authority. – air, land or water, except as provided in
The power to impose a tax, fee, or charge this Code;
or to generate revenue under this Code (k) Taxes on premiums paid by way of
shall be exercised by the sanggunian of the reinsurance or retrocession;
local government unit concerned through (l) Taxes, fees or charges for the
an appropriate ordinance. registration of motor vehicles and for the
issuance of all kinds of licenses or permits
SECTION 133. Common Limitations on the for the driving thereof, except tricycles;
Taxing Powers of Local Government Units. (m) Taxes, fees, or other charges on
– Unless otherwise provided herein, the Philippine products actually exported,
exercise of the taxing powers of provinces, except as otherwise provided herein;
cities, municipalities, and barangays shall (n) Taxes, fees, or charges, on Countryside
not extend to the levy of the following: and Barangay Business Enterprises and
(a) Income tax, except when levied on cooperatives duly registered under R.A. No.
banks and other financial institutions; 6810 and Republic Act Numbered Sixty-
(b) Documentary stamp tax; nine hundred thirty-eight (R.A. No. 6938)
(c) Taxes on estates, inheritance, gifts, otherwise known as the “Cooperative Code
legacies and other acquisitions morris of the Philippines” respectively; and
causa,  except as otherwise provided (o) Taxes, fees or charges of any kind on
herein; the National Government, its agencies and
(d) Customs duties, registration fees of instrumentalities, and local government
vessel and wharfage on wharves, tonnage units.
dues, and all other kinds of customs fees, CHAPTER II
charges and dues except wharfage on Specific Provisions on the Taxing and
wharves constructed and maintained by the Other Revenue-Raising Powers of Local
local government unit concerned; Government Units
(e) Taxes, fees, and charges and other ARTICLE I
impositions upon goods carried into or out Provinces
of, or passing through, the territorial
jurisdictions of local government units in SECTION 134. Scope of Taxing Powers. –
the guise of charges for wharfage, tolls for Except as otherwise provided in this Code,
bridges or otherwise, or other taxes, fees, the province may levy only the taxes, fees,
or charges in any form whatsoever upon and charges as provided in this Article.
such goods or merchandise;
(f) Taxes, fees or charges on agricultural SECTION 135. Tax on Transfer of Real
and aquatic products when sold by Property Ownership. – (a) The province may
marginal farmers or fishermen; impose a tax on the sale , donation, barter,
(g) Taxes on business enterprises certified or on any other mode of transferring
to by the Board of Investments as pioneer ownership or title of real property at the
or non-pioneer for a period of six (6) and rate of not more than fifty percent (50%) of
four (4) years, respectively from the date of the one percent (1%) of the total
registration; consideration involved in the acquisition of
(h) Excise taxes on articles enumerated the property or of the fair market value in
under the National Internal Revenue Code, case the monetary consideration involved
as amended, and taxes, fees or charges on in the transfer is not substantial,
petroleum products; whichever is higher. The sale, transfer or
(i) Percentage or value-added tax (VAT) on other disposition of real property pursuant
sales, barters or exchanges or similar to R.A. No. 6657 shall be exempt from this
transactions on goods or services except as tax.
otherwise provided herein; (b) For this purpose, the Register of Deeds
(j) Taxes on the gross receipts of of the province concerned shall, before
transportation contractors and persons registering any deed, require the
engaged in the transportation of passengers presentation of the evidence of payment of
or freight by hire and common carriers by this tax. The provincial assessor shall
likewise make the same requirement before
cancelling an old tax declaration and started to operate, the tax shall be based
issuing a new one in place thereof. Notaries on the gross receipts for the preceding
public shall furnish the provincial treasurer calendar year, or any fraction thereon, as
with a copy of any deed transferring provided herein.
ownership or title to any real property
within thirty (30) days from the date of SECTION 138. Tax on Sand, Gravel and
notarization. Other Quarry Resources.  – The province
It shall be the duty of the seller, donor, may levy and collect not more than ten
transferor, executor or administrator to percent (10%) of fair market value in the
pay the tax herein imposed within sixty locality per cubic meter of ordinary stones,
(60) days from the date of the execution of sand, gravel, earth, and other quarry
the deed or from the date of the decedent’s resources, as defined under the National
death. Internal Revenue Code, as amended,
extracted from public lands or from the
SECTION 136. Tax on Business of Printing beds of seas, lakes, rivers, streams, creeks,
and Publication. – The province may and other public waters within its
impose a tax on the business of persons territorial jurisdiction.
engaged in the printing and/or publication The permit to extract sand, gravel and
of books, cards, posters, leaflets, handbills, other quarry resources shall be issued
certificates, receipts, pamphlets, and exclusively by the provincial governor,
others of similar nature, at a rate not pursuant to the ordinance of the
exceeding fifty percent (50%) of one sangguniang panlalawigan.
percent (1%) of the gross annual receipts The proceeds of the tax on sand, gravel and
for the preceding calendar year. other quarry resources shall be distributed
In the case of a newly started business, the as follows:
tax shall not exceed one-twentieth (1/20) (1) Province – Thirty percent (30%);
of one percent (1%) of the capital (2) Component City or Municipality where
investment. In the succeeding calendar the sand, gravel, and other quarry
year, regardless of when the business resources are extracted – Thirty percent
started to operate, the tax shall be based (30%); and
on the gross receipts for the preceding (3) Barangay where the sand, gravel, and
calendar year, or any fraction thereof, as other quarry resources are extracted –
provided herein. Forty percent (40%).
The receipts from the printing and/or SECTION 139. Professional Tax. – (a) The
publishing of books or other reading province may levy an annual professional
materials prescribed by the Department of tax on each person engaged in the exercise
Education, Culture and Sports as school or practice of his profession requiring
texts or references shall be exempt from government examination at such amount
the tax herein imposed. and reasonable classification as the
sangguniang panlalawigan may determine
SECTION 137. Franchise Tax. – but shall in no case exceed Three hundred
Notwithstanding any exemption granted by pesos (P300.00).
any law or other special law, the province (b) Every person legally authorized to
may impose a tax on businesses enjoying a practice his profession shall pay the
franchise, at a rate not exceeding fifty professional tax to the province where he
percent (50%) of one percent (1%) of the practices his profession or where he
gross annual receipts for the preceding maintains his principal office in case he
calendar year based on the incoming practices his profession in several places:
receipt, or realized, within its territorial Provided, however, That such person who
jurisdiction. has paid the corresponding professional tax
In the case of a newly started business, the shall be entitled to practice his profession
tax shall not exceed one-twentieth (1/20) in any part of the Philippines without being
of one percent (1%) of the capital subjected to any other national or local tax,
investment. In the succeeding calendar license, or fee for the practice of such
year, regardless of when the business profession.
(c) Any individual or corporation employing the municipality where such amusement
a person subject to professional tax shall places are located.
require payment by that person of the tax SECTION 141. Annual Fixed Tax For Every
on his profession before employment and Delivery Truck or Van of Manufacturers or
annually thereafter. Producers, Wholesalers of, Dealers, or
(d) The professional tax shall be payable Retailers in, Certain Products. – (a) The
annually, on or before the thirty-first (31st) province may levy an annual fixed tax for
day of January. Any person first beginning every truck, van or any vehicle used by
to practice a profession after the month of manufacturers, producers, wholesalers,
January must, however, pay the full tax dealers or retailers in the delivery or
before engaging therein. A line of distribution of distilled spirits, fermented
profession does not become exempt even if liquors, soft drinks, cigars and cigarettes,
conducted with some other profession for and other products as may be determined
which the tax has been paid. Professionals by the sangguniang panlalawigan, to sales
exclusively employed in the government outlets, or consumers, whether directly or
shall be exempt from the payment of this indirectly, within the province in an
tax. amount not exceeding Five hundred pesos
(e) Any person subject to the professional (P500.00).
tax shall write in deeds, receipts, (b) The manufacturers, producers,
prescriptions, reports, books of account, wholesalers, dealers and retailers referred
plans and designs, surveys and maps, as to in the immediately foregoing paragraph
the case may be, the number of the official shall be exempt from the tax on peddlers
receipt issued to him. prescribed elsewhere in this Code.
SECTION 140. Amusement Tax.  – (a) The
province may levy an amusement tax to be ARTICLE II
collected from the proprietors, lessees, or Municipalities
operators of theaters, cinemas, concert SECTION 142. Scope of Taxing Powers. –
halls, circuses, boxing stadia, and other Except as otherwise provided in this Code,
places of amusement at a rate of not more municipalities may levy taxes, fees, and
than ten percent (10%) of the gross charges not otherwise levied by provinces.
receipts from admission fees.
(b) In the case of theaters or cinemas, the SECTION 143. Tax on Business. – The
tax shall first be deducted and withheld by municipality may impose taxes on the
their proprietors, lessees, or operators and following businesses:
paid to the provincial treasurer before the (a) On manufacturers, assemblers,
gross receipts are divided between said repackers, processors, brewers, distillers,
proprietors, lessees, or operators and the rectifiers, and compounders of liquors,
distributors of the cinematographic films. distilled spirits, and wines or
(c) The holding of operas, concerts, dramas, manufacturers of any article of commerce
recitals, painting and art exhibitions, of whatever kind or nature, in accordance
flower shows, musical programs, literary with the following schedule:
and oratorical presentations, except pop, With gross sales or receipts Amount of
rock, or similar concerts shall be exempt for thepreceding calendar year TaxPer
from the payment of the tax herein in the amount of: Annum
imposed. Less than P165.00
(d) The sangguniang panlalawigan may P10,000.00
prescribe the time, manner, terms and    P10,000.00 15,000.00 220.00
conditions for the payment of tax. In case or more but
of fraud or failure to pay the tax, the less than
sangguniang panlalawigan may impose
     15,000.00 20,000.00 302.00
such surcharges, interests and penalties as
or more but
it may deem appropriate.
less than
(e) The proceeds from the amusement tax
shall be shared equally by the province and      20,000.00 30,000.00 440.00
or more but
less than
     30,000.00 40,000.00 660.00 (b) On wholesalers, distributors, or dealers
or more but in any article of commerce of whatever
less than kind or nature in accordance with the
     40,000.00 50,000.00 825.00 following schedule:
or more but With gross sales or receipts for thepreceding A
less than calendar year in the amount of:
     50,000.00 75,000.00 1,320.00 Less than P1,000.00 P1
or more but     P1,000.00 or more but less P2,000.00 33
less than than
     75,000.00 100,000.00 1,650.00       2,000.00 or more but less 3,000.00 50
or more but than
less than       3,000.00 or more but less 4,000.00 72
   100,000.00 150,000.00 2,200.00 than
or more but       4,000.00 or more but less 5,000.00 10
less than than
   150,000.00 200,000.00 2,750.00       5,000.00 or more but less 6,000.00 12
or more but than
less than       6,000.00 or more but less 7,000.00 14
   200,000.00 300,000.00 3,850.00 than
or more but       7,000.00 or more but less 8,000.00 16
less than than
   300,000.00 500,000.00 5,500.00       8,000.00 or more but less 10,000.00 18
or more but than
less than     10,000.00 or more but less 15,000.00 22
   500,000.00 750,000.00 8,000.00 than
or more but     15,000.00 or more but less 20,000.00 27
less than than
   750,000.00 1,000,000.00 10,000.00     20,000.00 or more but less 30,000.00 33
or more but than
less than
    30,000.00 or more but less 40,000.00 44
1,000,000.00 2,000,000.00 13,750.00 than
or more but
    40,000.00 or more but less 50,000.00 66
less than
than
2,000,000.00 3,000,000.00 16,500.00
    50,000.00 or more but less 75,000.00 99
or more but
than
less than
    75,000.00 or more but less 100,000.00 1,
3,000,000.00 4,000,000.00 19,800.00
than
or more but
less than    100,000.00 or more but less 150,000.00 1,
than
4,000,000.00 5,000,000.00 23,100.00
or more but    150,000.00 or more but less 200,000.00 2,
less than than
5,000,000.00 6,500,000.00 24,375.00    200,000.00 or more but less 300,000.00 3,
or more but than
less than    300,000.00 or more but less 500,000.00 4,
6,500,000.00 at a rate not than
or more exceeding    500,000.00 or more but less 750,000.00 6,
thirty-seven than
and a half    750,000.00 or more but less 1,000,000.0 8,
percent (37½ than 0
%) of one 1,000,000.00 or more but less 2,000,000.0 10
percent (1%) than 0
2,000,000.00 or more at
 than
     40,000.00 or more but less 50,000.00 55
(c) On exporters, and on manufacturers, than
millers, producers, wholesalers,      50,000.00 or more but less 75,000.00 88
distributors, dealers or retailers of essential than
commodities enumerated hereunder at a      75,000.00 or more but less 100,000.00 1,
rate not exceeding one-half (½) of the rates than
prescribed under subsection (a), (b) and (d)    100,000.00 or more but less 150,000.00 1,
of this Section: than
(1) Rice and corn;
   150,000.00 or more but less 200,000.00 2,
(2) Wheat or cassava flour, meat, dairy
than
products, locally manufactured, processed
or preserved food, sugar, salt and other    200,000.00 or more but less 250,000.00 3,
agricultural, marine, and fresh water than
products, whether in their original state or    250,000.00 or more but less 300,000.00 4,
not; than
(3) Cooking oil and cooking gas;    300,000.00 or more but less 400,000.00 6,
(4) Laundry soap, detergents, and medicine; than
(5) Agricultural implements, equipment and    400,000.00 or more but less 500,000.00 8,
post-harvest facilities, fertilizers, than
pesticides, insecticides, herbicides and    500,000.00 or more but less 750,000.00 9,
other farm inputs; than
(6) Poultry feeds and other animal feeds;    750,000.00 or more but less 1,000,000.0 10
(7) School supplies; and than 0
(8) Cement. 1,000,000.00 or more but less 2,000,000.0 11
(d) On retailers. than 0
With gross sales or Rate of 2,000,000.00 or more at
receiptsfor the preceding TaxPer pe
calendar year of: Annum
(f) On banks and other financial
P400,000.00 or less      2% institutions, at a rate not exceeding fifty
more than P400,000.00      1% percent (50%) of one percent (1%) on the
Provided, however, That barangays shall gross receipts of the preceding calendar
have the exclusive power to levy taxes, as year derived from interest, commissions
provided under Section 152 hereof, on and discounts from lending activities,
gross sales or receipts of the preceding income from financial leasing, dividends,
calendar year of Fifty thousand pesos rentals on property and profit from
(P50,000.00) or less, in the case of cities, exchange or sale of property, insurance
and Thirty thousand pesos (P30,000.00) or premium.
less, in the case of municipalities. (g) On peddlers engaged in the sale of any
(e) On contractors and other independent merchandise or article of commerce, at a
contractors, in accordance with the rate not exceeding Fifty pesos (P50.00) per
following schedule: peddler annually.
With gross receipts for thepreceding calendar (h) On any business, not otherwise
year in the amount of: specified in the preceding paragraphs,
Less than P5,000.00 P27.50 which the sanggunian concerned may deem
     P5,000.00 or more but less P10,000.00 proper to tax: Provided, That on any
than business subject to the excise, value-added
     10,000.00 or more but less 15,000.00 or percentage tax under the National
than Internal Revenue Code, as amended, the
rate of tax shall not exceed two percent
     15,000.00 or more but less 20,000.00
(2%) of gross sales or receipts of the
than
preceding calendar year.
     20,000.00 or more but less 30,000.00 The sanggunian concerned may prescribe a
than schedule of graduated tax rates but in no
     30,000.00 or more but less 40,000.00 case to exceed the rates prescribed herein.
 occupation, or practice such profession or
SECTION 144. Rates of Tax within the calling.
Metropolitan Manila Area. – The
municipalities within the Metropolitan SECTION 148. Fees for Sealing and
Manila Area may levy taxes at rates which Licensing of Weights and Measures. – (a)
shall not exceed by fifty percent (50%) the The municipality may levy fees for the
maximum rates prescribed in the preceding sealing and licensing of weights and
section. measures at such reasonable rates as shall
be prescribed by the sangguniang bayan.
SECTION 145. Retirement of Business. – A (b) The sangguniang bayan shall prescribe
business subject to tax pursuant to the the necessary regulations for the use of
preceding sections shall, upon termination such weights and measures, subject to such
thereof, submit a sworn statement of its guidelines as shall be prescribed by the
gross sales or receipts for the current year. Department of Science and Technology.
If the tax paid during the year be less than The sanggunian concerned shall, by
the tax due on said gross sales or receipts appropriate ordinance, penalize fraudulent
of the current year, the difference shall be practices and unlawful possession or use of
paid before the business is considered instruments of weights and measures and
officially retired. prescribe the criminal penalty therefor in
accordance with the provisions of this
SECTION 146. Payment of Business Taxes. Code. Provided, however, That the
– (a) The taxes imposed under Section 143 sanggunian concerned may authorize the
shall be payable for every separate or municipal treasurer to settle an offense not
distinct establishment or place where involving the commission of fraud before a
business subject to the tax is conducted case therefor is filed in court, upon
and one line of business does not become payment of a compromise penalty of not
exempt by being conducted with some less than Two hundred pesos (P200.00).
other businesses for which such tax has
been paid. The tax on a business must be SECTION 149. Fishery Rentals, Fees and
paid by the person conducting the same. Charges. – (a) Municipalities shall have the
(b) In cases where a person conducts or exclusive authority to grant fishery
operates two (2) or more of the businesses privileges in the municipal waters and
mentioned in Section 143 of this Code impose rentals, fees or charges therefor in
which are subject to the same rate of tax, accordance with the provisions of this
the tax shall be computed on the combined section.
total gross sales or receipts of the said two (b) The sangguniang bayan may:
(2) or more related businesses. (1) Grant fishery privileges to erect fish
(c) In cases where a person conducts or corrals, oysters, mussels or other aquatic
operates two (2) or more businesses beds or bangus fry areas, within a definite
mentioned in Section 143 of this Code zone of the municipal waters, as
which are subject to different rates of tax, determined by it: Provided, however, That
the gross sales or receipts of each business duly registered organizations and
shall be separately reported for the purpose cooperatives of marginal fishermen shall
of computing the tax due from each have the preferential right to such fishery
business. privileges: Provided, further, That the
sangguniang bayan may require a public
SECTION 147. Fees and Charges. – The bidding in conformity with and pursuant to
municipality may impose and collect such an ordinance for the grant of such
reasonable fees and charges on business privileges: Provided, finally, That in the
and occupation and, except as reserved to absence of such organizations and
the province in Section 139 of this Code, cooperatives or their failure to exercise
on the practice of any profession or calling, their preferential right, other parties may
commensurate with the cost of regulation, participate in the public bidding in
inspection and licensing before any person conformity with the above cited procedure.
may engage in such business or
(2) Grant the privilege to gather, take or taxable by the city or municipality where
catch bangus fry, prawn fry or kawag-kawag the principal office is located; and
or fry of other species and fish from the (2) Seventy percent (70%) of all sales
municipal waters by nets, traps or other recorded in the principal office shall be
fishing gears to marginal fishermen free of taxable by the city or municipality where
any rental, fee, charge or any other the factory, project office, plant, or
imposition whatsoever. plantation is located.
(3) Issue licenses for the operation of (c) In case of a plantation located at a place
fishing vessels of three (3) tons or less for other than the place where the factory is
which purpose the sangguniang bayan shall located, said seventy percent (70%)
promulgate rules and regulations regarding mentioned in subparagraph (b) of
the issuances of such licenses to qualified subsection (2) above shall be divided as
applicants under existing laws; Provided, follows:
however, That the sanggunian concerned (1) Sixty percent (60%) to the city or
shall, by appropriate ordinance, penalize municipality where the factory is located;
the use of explosives, noxious or poisonous and
substances, electricity, muro-ami, and (2) Forty percent (40%) to the city or
other deleterious methods of fishing and municipality where the plantation is
prescribe a criminal penalty therefor in located.
accordance with the provisions of this (d) In cases where a manufacturer,
Code: Provided, finally, That the assembler, producer, exporter or contractor
sanggunian concerned shall have the has two (2) or more factories, project
authority to prosecute any violation of the offices, plants, or plantations located in
provisions of applicable fishery laws. different localities, the seventy percent
(70%) sales allocation mentioned in
SECTION 150. Situs of the Tax. – (a) For subparagraph (b) of subsection (2) above
purposes of collection of the taxes under shall be prorated among the localities
Section 143 of this Code, manufacturers, where the factories, project offices, plants,
assemblers, repackers, brewers, distillers, and plantations are located in proportion
rectifiers and compounders of liquor, to their respective volumes of production
distilled spirits and wines, millers, during the period for which the tax is due.
producers, exporters, wholesalers, (e) The foregoing sales allocation shall be
distributors, dealers, contractors, banks applied irrespective of whether or not sales
and other financial institutions, and other are made in the locality where the factory,
businesses, maintaining or operating project office, plant, or plantation is
branch or sales outlet elsewhere shall located.
record the sale in the branch or sales outlet
making the sale or transaction, and the tax ARTICLE III
thereon shall accrue and shall be paid to Cities
the municipality where such branch or SECTION 151. Scope of Taxing Powers.  –
sales outlet is located. In cases where there Except as otherwise provided in this Code,
is no such branch or sales outlet in the city the city, may levy the taxes, fees, and
or municipality where the sale or charges which the province or municipality
transaction is made, the sale shall be duly may impose: Provided, however, That the
recorded in the principal office and the taxes, fees and charges levied and collected
taxes due shall accrue and shall be paid to by highly urbanized and independent
such city or municipality. component cities shall accrue to them and
(b) The following sales allocation shall distributed in accordance with the
apply to manufacturers, assemblers, provisions of this Code.
contractors, producers, and exporters with The rates of taxes that the city may levy
factories, project offices, plants, and may exceed the maximum rates allowed for
plantations in the pursuit of their business: the province or municipality by not more
(1) Thirty percent (30%) of all sales than fifty percent (50%) except the rates of
recorded in the principal office shall be professional and amusement taxes.
 ARTICLE IV operated and maintained by them within
Barangays their jurisdiction.
SECTION 152. Scope of Taxing Powers. –
The barangays may levy taxes, fees, and SECTION 155. Toll Fees or Charges. – The
charges, as provided in this Article, which sanggunian concerned may prescribe the
shall exclusively accrue to them: terms and conditions and fix the rates for
(a) Taxes – On stores or retailers with fixed the imposition of toll fees or charges for
business establishments with gross sales of the use of any public road, pier, or wharf,
receipts of the preceding calendar year of waterway, bridge, ferry or
Fifty thousand pesos (P50,000.00) or less, telecommunication system funded and
in the case of cities and Thirty thousand constructed by the local government unit
pesos (P30,000.00) or less, in the case of concerned: Provided, That no such toll fees
municipalities, at a rate not exceeding one or charges shall be collected from officers
percent (1%) on such gross sales or and enlisted men of the Armed Forces of
receipts. the Philippines and members of the
(b) Service Fees or Charges. – Barangays Philippine National Police on mission, post
may collect reasonable fees or charges for office personnel delivering mail, physically-
services rendered in connection with the handicapped, and disabled citizens who are
regulations or the use of barangay-owned sixty-five (65) years or older.
properties or service facilities such as When public safety and welfare so requires,
palay, copra, or tobacco dryers. the sanggunian concerned may discontinue
(c) Barangay Clearance.  – No city or the collection of the tolls, and thereafter
municipality may issue any license or the said facility shall be free and open for
permit for any business or activity unless a public use.
clearance is first obtained from the
barangay where such business or activity is ARTICLE VI
located or conducted. For such clearance, Community Tax
the sangguniang barangay may impose a
reasonable fee. The application for
clearance shall be acted upon within seven SECTION 156. Community Tax. – Cities or
(7) working days from the filing thereof. In municipalities may levy a community tax
the event that the clearance is not issued in accordance with the provisions of this
within the said period, the city or Article.
municipality may issue the said license or
permit. SECTION 157. Individuals Liable to
(d) Other fees and Charges. – The barangay Community Tax. – Every inhabitant of the
may levy reasonable fees and charges: Philippines eighteen (18) years of age or
(1) On commercial breeding of fighting over who has been regularly employed on a
cocks, cockfights and cockpits; wage or salary basis for at least thirty (30)
(2) On places of recreation which charge consecutive working days during any
admission fees; and calendar year, or who is engaged in
(3) On billboards, signboards, neon signs, business or occupation, or who owns real
and outdoor advertisements. property with an aggregate assessed value
of One thousand pesos (P1,000.00) or more,
ARTICLE V or who is required by law to file an income
Common Revenue-Raising Powers tax return shall pay an annual additional
tax of Five pesos (P5.00) and an annual
SECTION 153. Service Fees and Charges. – additional tax of One peso (P1.00) for every
Local government units may impose and One thousand pesos (P1,000.00) of income
collect such reasonable fees and charges for regardless of whether from business,
services rendered. exercise of profession or from property
which in no case shall exceed Five
SECTION 154. Public Utility Charges. – thousand pesos (P5,000.00).
Local government units may fix the rates In the case of husband and wife, the
for the operation of public utilities owned, additional tax herein imposed shall be
based upon the total property owned by benefit of exemption on or before the last
them and the total gross receipts or day of June, he shall be liable for the
earnings derived by them. community tax on the day he reaches such
age or upon the day the exemption ends.
SECTION 158. Juridical Persons Liable to However, if a person reaches the age of
Community Tax. – Every corporation no eighteen (18) years or loses the benefit of
matter how created or organized, whether exemption on or before the last day of
domestic or resident foreign, engaged in or March, he shall have twenty (20) days to
doing business in the Philippines shall pay pay the community tax without becoming
an annual community tax of Five hundred delinquent.
pesos (P500.00) and an annual additional Persons who come to reside in the
tax, which, in no case, shall exceed Ten Philippines or reach the age of eighteen
thousand pesos (P10,000.00) in accordance (18) years on or after the first (1st) day of
with the following schedule: July of any year, or who cease to belong to
(1) For every Five thousand pesos an exempt class on or after the same date,
(P5,000.00) worth of real property in the shall not be subject to the community tax
Philippines owned by it during the for that year.
preceding year based on the valuation used (b) Corporations established and organized
for the payment of real property tax under on or before the last day of June shall be
existing laws, found in the assessment rolls liable for the community tax for that year.
of the city or municipality where the real But corporations established and organized
property is situated – Two pesos (P2.00); on or before the last day of March shall
and have twenty (20) days within which to pay
(2) For every Five thousand pesos the community tax without becoming
(P5,000.00) of gross receipts or earnings delinquent. Corporations established and
derived by it from its business in the organized on or after the first day of July
Philippines during the preceding year – Two shall not be subject to the community tax
pesos (P2.00). for that year.
The dividends received by a corporation If the tax is not paid within the time
from another corporation however shall, for prescribed above, there shall be added to
the purpose of the additional tax, be the unpaid amount an interest of twenty-
considered as part of the gross receipts or four percent (24%) per annum from the due
earnings of said corporation. date until it is paid.

SECTION 159. Exemptions. – The following SECTION 162. Community Tax Certificate.
are exempt from the community tax: – A community tax certificate shall be
(1) Diplomatic and consular issued to every person or corporation upon
representatives; and payment of the community tax. A
(2) Transient visitors when their stay in the community tax certificate may also be
Philippines does not exceed three (3) issued to any person or corporation not
months. subject to the community tax upon
payment of One peso (P1.00).
SECTION 160. Place of Payment. – The
community tax shall be paid in the place of SECTION 163. Presentation of Community
residence of the individual, or in the place Tax Certificate On Certain Occasions. – (a)
where the principal office of the juridical When an individual subject to the
entity is located. community tax acknowledges any
document before a notary public, takes the
SECTION 161. Time for Payment; Penalties oath of office upon election or appointment
for Delinquency. – (a) The community tax to any position in the government service;
shall accrue on the first (1st) day of receives any license, certificate, or permit
January of each year which shall be paid from any public authority; pays any tax or
not later than the last day of February of fee; receives any money from any public
each year. If a person reaches the age of fund; transacts other official business; or
eighteen (18) years or otherwise loses the receives any salary or wage from any
person or corporation, it shall be the duty or municipal treasurer shall accrue entirely
of any person, officer, or corporation with to the general fund of the city or
whom such transaction is made or business municipality concerned. However, proceeds
done or from whom any salary or wage is of the community tax collected through
received to require such individual to the barangay treasurers shall be
exhibit the community tax certificate. apportioned as follows:
The presentation of community tax (1) Fifty percent (50%) shall accrue to the
certificate shall not be required in general fund of the city or municipality
connection with the registration of a voter. concerned; and
(b) When, through its authorized officers, (2) Fifty percent (50%) shall accrue to the
any corporation subject to the community barangay where the tax is collected.
tax receives any license, certificate, or CHAPTER III
permit from any public authority, pays any Collection of Taxes
tax or fee, receives money from public SECTION 165. Tax Period and Manner of
funds, or transacts other official business, Payment. – Unless otherwise provided in
it shall be the duty of the public official this Code, the tax period of all local taxes,
with whom such transaction is made or fees and charges shall be the calendar year.
business done, to require such corporation Such taxes, fees and charges may be paid
to exhibit the community tax certificate. in quarterly installments.
(c) The community tax certificate required SECTION 166. Accrual of Tax. – Unless
in the two preceding paragraphs shall be otherwise provided in this Code, all local
the one issued for the current year, except taxes, fees, and charges shall accrue on the
for the period from January until the first (1st) day of January of each year.
fifteenth (15th) of April each year, in which However, new taxes, fees or charges, or
case, the certificate issued for the changes in the rates thereof, shall accrue
preceding year shall suffice. on the first (1st) day of the quarter next
following the effectivity of the ordinance
SECTION 164. Printing of Community Tax imposing such new levies or rates.
Certificates and Distribution of Proceeds. – SECTION 167. Time of Payment. – Unless
(a) The Bureau of Internal Revenue shall otherwise provided in this Code, all local
cause the printing of community tax taxes, fees, and charges shall be paid
certificates and distribute the same to the within the first twenty (20) days of January
cities and municipalities through the city or of each subsequent quarter, as the case
and municipal treasurers in accordance may be. The sanggunian concerned may,
with prescribed regulations. for a justifiable reason or cause, extend the
The proceeds of the tax shall accrue to the time for payment of such taxes, fees, or
general funds of the cities, municipalities charges without surcharges or penalties,
and barangays except a portion thereof but only for a period not exceeding six (6)
which shall accrue to the general fund of months.
the National Government to cover the SECTION 168. Surcharges and Penalties on
actual cost of printing and distribution of Unpaid Taxes, Fees, or Charges. – The
the forms and other related expenses. The sanggunian may impose a surcharge not
city or municipal treasurer concerned shall exceeding twenty-five (25%) of the amount
remit to the national treasurer the said of taxes, fees or charges not paid on time
share of the National Government in the and an interest at the rate not exceeding
proceeds of the tax within ten (10) days two percent (2%) per month of the unpaid
after the end of each quarter. taxes, fees or charges including surcharges,
(b) The city or municipal treasurer shall until such amount is fully paid but in no
deputize the barangay treasurer to collect case shall the total interest on the unpaid
the community tax in their respective amount or portion thereof exceed thirty-six
jurisdictions: Provided, however, That said (36) months.
barangay treasurer shall be bonded in SECTION 169. Interests on Other Unpaid
accordance with existing laws. Revenues. – Where the amount of any other
(c) The proceeds of the community tax revenue due a local government unit,
actually and directly collected by the city except voluntary contributions or
donations, is not paid on the date fixed in Internal Revenue shall be made available to
the ordinance, or in the contract, the local treasurer, his deputy or duly
expressed or implied, or upon the authorized representative.
occurrence of the event which has given CHAPTER IV
rise to its collection, there shall be Civil Remedies for Collection of Revenues
collected as part of that amount an interest SECTION 172. Application of Chapter. –
thereon at the rate not exceeding two The provisions of this Chapter and the
percent (2%) per month from the date it is remedies provided herein may be availed of
due until it is paid, but in no case shall the for the collection of any delinquent local
total interest on the unpaid amount or a tax, fee, charge, or other revenue.
portion thereof exceed thirty-six (36) SECTION 173. Local Government’s Lien. –
months. Local taxes, fees, charges and other
SECTION 170. Collection of Local Revenue revenues constitute a lien, superior to all
by Treasurer. – All local taxes, fees, and liens, charges or encumbrances in favor of
charges shall be collected by the provincial, any person, enforceable by appropriate
city, municipal, or barangay treasurer, or administrative or judicial action, not only
their duly authorized deputies. upon any property or rights therein which
The provincial, city or municipal treasurer may be subject to the lien but also upon
may designate the barangay treasurer as property used in business, occupation,
his deputy to collect local taxes, fees, or practice of profession or calling, or exercise
charges. In case a bond is required for the of privilege with respect to which the lien
purpose, the provincial, city or municipal is imposed. The lien may only be
government shall pay the premiums extinguished upon full payment of the
thereon in addition to the premiums of delinquent local taxes, fees and charges
bond that may be required under this Code. including related surcharges and interest.
SECTION 171. Examination of Books of SECTION 174. Civil Remedies. – The civil
Accounts and Pertinent Records of remedies for the collection of local taxes,
Businessmen by Local Treasurer.   – The fees, or charges, and related surcharges and
provincial, city, municipal or barangay interest resulting from delinquency shall
treasurer may, by himself or through any of be:
his deputies duly authorized in writing, (a) By administrative action through
examine the books, accounts, and other distraint of goods, chattels, or effects, and
pertinent records of any person, other personal property of whatever
partnership, corporation, or association character, including stocks and other
subject to local taxes, fees and charges in securities, debts, credits, bank accounts,
order to ascertain, assess, and collect the and interest in and rights to personal
correct amount of the tax, fee, or charge. property, and by levy upon real property
Such examination shall be made during and interest in or rights to real property;
regular business hours, only once for every and
tax period, and shall be certified to by the (b) By judicial action.
examining official. Such certificate shall be Either of these remedies or all may be
made of record in the books of accounts of pursued concurrently or simultaneously at
the taxpayer examined. the discretion of the local government unit
In case the examination herein authorized concerned.
is made by a duly authorized deputy of the SECTION 175. Distraint of Personal
local treasurer, the written authority of the Property. – The remedy by distraint shall
deputy concerned shall specifically state proceed as follows:
the name, address, and business of the (a) Seizure – Upon failure of the person
taxpayer whose books, accounts, and owing any local tax, fee, or charge to pay
pertinent records are to be examined, the the same at the time required, the local
date and place of such examination and the treasurer or his deputy may, upon written
procedure to be followed in conducting the notice, seize or confiscate any personal
same. property belonging to that person or any
For this purpose, the records of the personal property subject to the lien in
revenue district office of the Bureau of sufficient quantity to satisfy the tax, fee,
or charge in question, together with any make a report of the proceedings in writing
increment thereto incident to delinquency to the local chief executive concerned.
and the expenses of seizure. In such case, Should the property distrained be not
the local treasurer or his deputy shall issue disposed of within one hundred and twenty
a duly authenticated certificate based upon (120) days from the date of distraint, the
the records of his office showing the fact of same shall be considered as sold to the
delinquency and the amounts of the tax, local government unit concerned for the
fee, or charge and penalty due. Such amount of the assessment made thereon by
certificate shall serve as sufficient warrant the Committee on Appraisal and to the
for the distraint of personal property extent of the same amount, the tax
aforementioned, subject to the taxpayer’s delinquencies shall be cancelled.
right to claim exemption under the Said Committee on Appraisal shall be
provisions of existing laws. Distrained composed of the city or municipal
personal property shall be sold at public treasurer as chairman, with a
auction in the manner herein provided for. representative of the Commission on Audit
(b) Accounting of distrained goods. – The and the city or municipal assessor as
officer executing the distraint shall make members.
or cause to be made an account of the (f) Disposition of proceeds – The proceeds
goods, chattels or effects distrained, a copy of the sale shall be applied to satisfy the
of which signed by himself shall be left tax, including the surcharges, interest, and
either with the owner or person from whose other penalties incident to delinquency,
possession the goods, chattels or effects and the expenses of the distraint and sale.
are taken, or at the dwelling or place of The balance over and above what is
business of that person and with someone required to pay the entire claim shall be
of suitable age and discretion, to which list returned to the owner of the property sold.
shall be added a statement of the sum The expenses chargeable upon the seizure
demanded and a note of the time and place and sale shall embrace only the actual
of sale. expenses of seizure and preservation of the
(c) Publication – The officer shall forthwith property pending the sale, and no charge
cause a notification to be exhibited in not shall be imposed for the services of the
less than three (3) public and conspicuous local officer or his deputy. Where the
places in the territory of the local proceeds of the sale are insufficient to
government unit where the distraint is satisfy the claim, other property may, in
made, specifying the time and place of sale, like manner, be distrained until the full
and the articles distrained. The time of sale amount due, including all expenses, is
shall not be less than twenty (20) days after collected.
notice to the owner or possessor of the SECTION 176.   Levy on Real Property. –
property as above specified and the After the expiration of the time required to
publication or posting of the notice. One pay the delinquent tax, fee, or charge, real
place for the posting of the notice shall be property may be levied on before,
at the office of the chief executive of the simultaneously, or after the distraint of
local government unit in which the personal property belonging to the
property is distrained. delinquent taxpayer. To this end, the
(d) Release of distrained property upon provincial, city or municipal treasurer, as
payment prior to sale – If at any time prior the case may be, shall prepare a duly
to the consummation of the sale, all the authenticated certificate showing the name
proper charges are paid to the officer of the taxpayer and the amount of the tax,
conducting the sale, the goods or effects fee, or charge, and penalty due from him.
distrained shall be restored to the owner. Said certificate shall operate with the force
(e) Procedure of sale – At the time and of a legal execution throughout the
place fixed in the notice, the officer Philippines. Levy shall be effected by
conducting the sale shall sell the goods or writing upon said certificate the
effects so distrained at public auction to description of the property upon which
the highest bidder for cash. Within five (5) levy is made. At the same time, written
days after the sale, the local treasurer shall notice of the levy shall be mailed to or
served upon the assessor and the Register place of sale, the name of the taxpayer
of Deeds of the province or city where the against whom the taxes, fees, or charges
property is located who shall annotate the are levied, and a short description of the
levy on the tax declaration and certificate property to be sold. At any time before the
of title of the property, respectively, and date fixed for the sale, the taxpayer may
the delinquent taxpayer or, if he be absent stay the proceedings by paying the taxes,
from the Philippines, to his agent or the fees, charges, penalties and interests. If he
manager of the business in respect to fails to do so, the sale shall proceed and
which the liability arose, or if there be shall be held either at the main entrance of
none, to the occupant of the property in the provincial, city or municipal building,
question. or on the property to be sold, or at any
In case the levy on real property is not other place as determined by the local
issued before or simultaneously with the treasurer conducting the sale and specified
warrant of distraint on personal property, in the notice of sale.
and the personal property of the taxpayer Within thirty (30) days after the sale, the
is not sufficient to satisfy his delinquency, local treasurer or his deputy shall make a
the provincial, city or municipal treasurer, report of the sale to the sanggunian
as the case may be, shall within thirty (30) concerned, and which shall form part of his
days after execution of the distraint, records. After consultation with the
proceed with the levy on the taxpayer’s sanggunian, the local treasurer shall make
real property. and deliver to the purchaser a certificate of
A report on any levy shall, within ten (10) sale, showing the proceedings of the sale,
days after receipt of the warrant, be describing the property sold, stating the
submitted by the levying officer to the name of the purchaser and setting out the
sanggunian concerned. exact amount of all taxes, fees, charges,
SECTION 177. Penalty for Failure to Issue and related surcharges, interests, or
and Execute Warrant. – Without prejudice penalties: Provided, however, That any
to criminal prosecution under the Revised excess in the proceeds of the sale over the
Penal Code and other applicable laws, any claim and cost of sales shall be turned over
local treasurer who fails to issue or execute to the owner of the property.
the warrant of distraint or levy after the The local treasurer may, by ordinance duly
expiration of the time prescribed, or who is approved, advance an amount sufficient to
found guilty of abusing the exercise thereof defray the costs of collection by means of
by competent authority shall be the remedies provided for in this Title,
automatically dismissed from the service including the preservation or
after due notice and hearing. transportation in case of personal property,
SECTION 178. Advertisement and Sale. – and the advertisement and subsequent
Within thirty (30) days after the levy, the sale, in cases of personal and real property
local treasurer shall proceed to publicly including improvements thereon.
advertise for sale or auction the property SECTION 179. Redemption of Property
or a usable portion thereof as may be Sold. – Within one (1) year from the date of
necessary to satisfy the claim and cost of sale, the delinquent taxpayer or his
sale; and such advertisement shall cover a representative shall have the right to
period of at least thirty (30) days. It shall redeem the property upon payment to the
be effected by posting a notice at the main local treasurer of the total amount of taxes,
entrance of the municipal building or city fees, or charges, and related surcharges,
hall, and in a public and conspicuous place interests or penalties from the date of
in the barangay where the real property is delinquency to the date of sale, plus
located, and by publication once a week for interest of not more than two percent (2%)
three (3) weeks in a newspaper of general per month on the purchase price from the
circulation in the province, city or date of purchase to the date of redemption.
municipality where the property is located. Such payment shall invalidate the
The advertisement shall contain the certificate of sale issued to the purchaser
amount of taxes, fees or charges, and and the owner shall be entitled to a
penalties due thereon, and the time and certificate of redemption from the
provincial, city or municipal treasurer or amount of the taxes, fees, charges, and
his deputy. related surcharges, interests, or penalties,
The provincial, city or municipal treasurer and the costs of sale. If the property is not
or his deputy, upon surrender by the redeemed as provided herein, the
purchaser of the certificate of sale ownership thereof shall be fully vested on
previously issued to him, shall forthwith the local government unit concerned.
return to the latter the entire purchase SECTION 182. Resale of Real Estate Taken
price paid by him plus the interest of not for Taxes, Fees, or Charges. – The
more than two percent (2%) per month sanggunian concerned may, by ordinance
herein provided for, the portion of the cost duly approved, and upon notice of not less
of sale and other legitimate expenses than twenty (20) days, sell and dispose of
incurred by him, and said property the real property acquired under the
thereafter shall be free from the lien of preceding section at public auction. The
such taxes, fees, or charges, related proceeds of the sale shall accrue to the
surcharges, interests, and penalties. general fund of the local government unit
The owner shall not, however, be deprived concerned.
of the possession of said property and shall SECTION 183. Collection of Delinquent
be entitled to the rentals and other income Taxes, Fees, Charges or other Revenues
thereof until the expiration of the time through Judicial Action. – The local
allowed for its redemption. government unit concerned may enforce
SECTION 180. Final Deed to Purchaser. – In the collection of delinquent taxes, fees,
case the taxpayer fails to redeem the charges or other revenues by civil action in
property as provided herein, the local any court of competent jurisdiction. The
treasurer shall execute a deed conveying to civil action shall be filed by the local
the purchaser so much of the property as treasurer within the period prescribed in
has been sold, free from liens of any taxes, Section 194 of this Code.
fees, charges, related surcharges, interests, SECTION 184. Further Distraint or Levy. –
and penalties. The deed shall succinctly The remedies by distraint and levy may be
recite all the proceedings upon which the repeated if necessary until the full amount
validity of the sale depends. due, including all expenses, is collected.
SECTION 181. Purchase of Property By the SECTION 185. Personal Property Exempt
Local Government Units for Want of Bidder. from Distraint or Levy. – The following
– In case there is no bidder for the real property shall be exempt from distraint and
property advertised for sale as provided levy, attachment or execution thereof for
herein, or if the highest bid is for an delinquency in the payment of any local
amount insufficient to pay the taxes, fees, tax, fee or charge, including the related
or charges, related surcharges, interests, surcharge and interest:
penalties and costs, the local treasurer (a) Tools and implements necessarily used
conducting the sale shall purchase the by the delinquent taxpayer in his trade or
property in behalf of the local government employment;
unit concerned to satisfy the claim and (b) One (1) horse, cow, carabao, or other
within two (2) days thereafter shall make a beast of burden, such as the delinquent
report of his proceedings which shall be taxpayer may select, and necessarily used
reflected upon the records of his office. It by him in his ordinary occupation;
shall be the duty of the Registrar of Deeds (c) His necessary clothing, and that of all
concerned upon registration with his office his family;
of any such declaration of forfeiture to (d) Household furniture and utensils
transfer the title of the forfeited property necessary for housekeeping and used for
to the local government unit concerned that purpose by the delinquent taxpayer,
without the necessity of an order from a such as he may select, of a value not
competent court. exceeding Ten thousand pesos
Within one (1) year from the date of such (P10,000.00);
forfeiture, the taxpayer or any of his (e) Provisions, including crops, actually
representative, may redeem the property provided for individual or family use
by paying to the local treasurer the full sufficient for four (4) months;
(f) The professional libraries of doctors, Within ten (10) days after their approval,
engineers, lawyers and judges; certified true copies of all provincial, city,
(g) One fishing boat and net, not exceeding and municipal tax ordinances or revenue
the total value of Ten thousand pesos measures shall be published in full for three
(P10,000.00), by the lawful use of which a (3) consecutive days in a newspaper of local
fisherman earns his livelihood; and circulation: Provided, however, That in
(h) Any material or article forming part of a provinces, cities and municipalities where
house or improvement of any real property. there are no newspapers of local
CHAPTER V circulation, the same may be posted in at
Miscellaneous Provisions least two (2) conspicuous and publicly
SECTION 186. Power To Levy Other Taxes, accessible places.
Fees or Charges. – Local government units SECTION 189. Furnishing of Copies of Tax
may exercise the power to levy taxes, fees Ordinances and Revenue Measures. –
or charges on any base or subject not Copies of all provincial, city, and municipal
otherwise specifically enumerated herein and barangay tax ordinances and revenue
or taxed under the provisions of the measures shall be furnished the respective
National Internal Revenue Code, as local treasurers for public dissemination.
amended, or other applicable laws: SECTION 190. Attempt to Enforce Void or
Provided, That the taxes, fees, or charges Suspended Tax Ordinances and Revenue
shall not be unjust, excessive, oppressive, Measures. – The enforcement of any tax
confiscatory or contrary to declared ordinance or revenue measure after due
national policy: Provided, further, That the notice of the disapproval or suspension
ordinance levying such taxes, fees or thereof shall be sufficient ground for
charges shall not be enacted without any administrative disciplinary action against
prior public hearing conducted for the the local officials and employees
purpose. responsible therefor.
SECTION 187. Procedure for Approval and SECTION 191. Authority of Local
Effectivity of Tax Ordinances and Revenue Government Units to Adjust Rates of Tax
Measures; Mandatory Public Hearings. – Ordinances. – Local government units shall
The procedure for approval of local tax have the authority to adjust the tax rates
ordinances and revenue measures shall be as prescribed herein not oftener than once
in accordance with the provisions of this every five (5) years, but in no case shall
Code: Provided, That public hearings shall such adjustment exceed ten percent (10%)
be conducted for the purpose prior to the of the rates fixed under this Code.
enactment thereof: Provided, further, That SECTION 192. Authority to Grant Tax
any question on the constitutionality or Exemption Privileges. – Local government
legality of tax ordinances or revenue units may, through ordinances duly
measures may be raised on appeal within approved, grant tax exemptions, incentives
thirty (30) days from the effectivity thereof or reliefs under such terms and conditions
to the Secretary of Justice who shall render as they may deem necessary.
a decision within sixty (60) days from the SECTION 193. Withdrawal of Tax
date of receipt of the appeal: Provided, Exemption Privileges. – Unless otherwise
however, That such appeal shall not have provided in this Code, tax exemptions or
the effect of suspending the effectivity of incentives granted to, or presently enjoyed
the ordinance and the accrual and payment by all persons, whether natural or juridical,
of the tax, fee, or charge levied therein: including government-owned or -controlled
Provided, finally, That within thirty (30) corporations, except local water districts,
days after receipt of the decision or the cooperatives duly registered under R.A. No.
lapse of the sixty-day period without the 6938,  non-stock and non-profit hospitals
Secretary of Justice acting upon the and educational institutions, are hereby
appeal, the aggrieved party may file withdrawn upon the effectivity of this
appropriate proceedings with a court of Code.
competent jurisdiction. CHAPTER VI
SECTION 188. Publication of Tax Taxpayer’s Remedies
Ordinances and Revenue Measures. –
SECTION 194. Periods of Assessment and treasurer finds the protest to be wholly or
Collection. – (a) Local taxes, fees, or partly meritorious, he shall issue a notice
charges shall be assessed within five (5) cancelling wholly or partially the
years from the date they became due. No assessment. However, if the local treasurer
action for the collection of such taxes, fees, finds the assessment to be wholly or partly
or charges, whether administrative or correct, he shall deny the protest wholly or
judicial, shall be instituted after the partly with notice to the taxpayer. The
expiration of such period: Provided, That taxpayer shall have thirty (30) days from
taxes, fees or charges which have accrued the receipt of the denial of the protest or
before the effectivity of this Code may be from the lapse of the sixty (60)-day period
assessed within a period of three (3) years prescribed herein within which to appeal
from the date they became due. with the court of competent jurisdiction
(b) In case of fraud or intent to evade the otherwise the assessment becomes
payment of taxes, fees, or charges, the conclusive and unappealable.
same may be assessed within ten (10) years SECTION 196. Claim for Refund of Tax
from discovery of the fraud or intent to Credit. – No case or proceeding shall be
evade payment. maintained in any court for the recovery of
(c) Local taxes, fees, or charges may be any tax, fee, or charge erroneously or
collected within five (5) years from the date illegally collected until a written claim for
of assessment by administrative or judicial refund or credit has been filed with the
action. No such action shall be instituted local treasurer. No case or proceeding shall
after the expiration of said period: be entertained in any court after the
Provided, however, That taxes, fees or expiration of two (2) years from the date of
charges assessed before the effectivity of the payment of such tax, fee, or charge, or
this Code may be collected within a period from the date the taxpayer is entitled to a
of three (3) years from the date of refund or credit.
assessment. TITLE II
(d) The running of the periods of Real Property Taxation
prescription provided in the preceding CHAPTER I
paragraphs shall be suspended for the time General Provisions
during which: SECTION 197. Scope. – This Title shall
(1) The treasurer is legally prevented from govern the administration, appraisal,
making the assessment of collection; assessment, levy and collection of real
(2) The taxpayer requests for a property tax.
reinvestigation and executes a waiver in SECTION 198. Fundamental Principles. –
writing before expiration of the period The appraisal, assessment, levy and
within which to assess or collect; and collection of real property tax shall be
(3) The taxpayer is out of the country or guided by the following fundamental
otherwise cannot be located. principles:
SECTION 195. Protest of Assessment. – (a) Real property shall be appraised at its
When the local treasurer or his duly current and fair market value;
authorized representative finds that (b) Real property shall be classified for
correct taxes, fees, or charges have not assessment purposes on the basis of its
been paid, he shall issue a notice of actual use;
assessment stating the nature of the tax, (c) Real property shall be assessed on the
fee, or charge, the amount of deficiency, basis of a uniform classification within
the surcharges, interests and penalties. each local government unit;
Within sixty (60) days from the receipt of (d) The appraisal, assessment, levy and
the notice of assessment, the taxpayer may collection of real property tax shall not be
file a written protest with the local let to any private person; and
treasurer contesting the assessment; (e) The appraisal and assessment of real
otherwise, the assessment shall become property shall be equitable.
final and executory. The local treasurer SECTION 199. Definition of Terms. – When
shall decide the protest within sixty (60) used in this Title, the term:
days from the time of its filing. If the local
(a) “Acquisition Cost” for newly-acquired its condition, amounting to more than a
machinery not yet depreciated and mere repair or replacement of parts
appraised within the year of its purchase, involving capital expenditures and labor,
refers to the actual cost of the machinery which is intended to enhance its value,
to its present owner, plus the cost of beauty or utility or to adapt it for new or
transportation, handling, and installation further purposes;
at the present site; (n) “Industrial Land” is land devoted
(b) “Actual Use” refers to the purpose for principally to industrial activity as capital
which the property is principally or investment and is not classified as
predominantly utilized by the person in agricultural, commercial, timber, mineral
possession thereof; or residential land;
(c) “Ad Valorem Tax” is a levy on real (o) “Machinery” embraces machines,
property determined on the basis of a fixed equipment, mechanical contrivances,
proportion of the value of the property; instruments, appliances or apparatus which
(d) “Agricultural Land” is land devoted may or may not be attached, permanently
principally to the planting of trees, raising or temporarily, to the real property. It
of crops, livestock and poultry, dairying, includes the physical facilities for
salt making, inland fishing and similar production, the installations and
aquacultural activities, and other appurtenant service facilities, those which
agricultural activities, and is not classified are mobile, self-powered or self-propelled,
as mineral, timber, residential, commercial and those not permanently attached to the
or industrial land; real property which are actually, directly,
(e) “Appraisal” is the act or process of and exclusively used to meet the needs of
determining the value of property as of a the particular industry, business or activity
specified date for a specific purpose; and which by their very nature and purpose
(f) “Assessment” is the act or process of are designed for, or necessary to its
determining the value of a property, or manufacturing, mining, logging,
proportion thereof subject to tax, including commercial, industrial or agricultural
the discovery, listing, classification, and purposes;
appraisal of properties; (p) “Mineral Lands” are lands in which
(g) “Assessment Level” is the percentage minerals, metallic or non-metallic, exist in
applied to the fair market value to sufficient quantity or grade to justify the
determine the taxable value of the necessary expenditures to extract and
property; utilize such materials;
(h) “Assessed Value” is the fair market (q) “Reassessment” is the assigning of new
value of the real property multiplied by the assessed values to property, particularly
assessment level. It is synonymous to real estate, as the result of a general,
taxable value; partial, or individual reappraisal of the
(i) “Commercial Land” is land devoted property;
principally for the object of profit and is (r) “Remaining Economic Life” is the period
not classified as agricultural, industrial, of time expressed in years from the date of
mineral, timber, or residential land; appraisal to the date when the machinery
(j) “Depreciated Value” is the value becomes valueless;
remaining after deducting depreciation (s) “Remaining Value” is the value
from the acquisition cost; corresponding to the remaining useful life
(k) “Economic Life” is the estimated period of the machinery;
over which it is anticipated that a (t) “Replacement or Reproduction Cost” is
machinery or equipment may be profitably the cost that would be incurred on the
utilized; basis of current prices, in acquiring an
(l) “Fair Market Value” is the price at which equally desirable substitute property, or
a property may be sold by a seller who is the cost of reproducing a new replica of the
not compelled to sell and bought by a buyer property on the basis of current prices with
who is not compelled to buy; the same or closely similar material; and
(m) “Improvement” is a valuable addition (u) “Residential Land” is land principally
made to a property or an amelioration in devoted to habitation.
SECTION 200. Administration of the Real upon completion or occupancy of the
Property Tax. – The provinces and cities, improvement, whichever comes earlier.
including the municipalities within the SECTION 204. Declaration of Real Property
Metropolitan Manila Area, shall be by the Assessor. – When any person,
primarily responsible for the proper, natural or juridical, by whom real property
efficient and effective administration of is required to be declared under Section
the real property tax. 202 hereof, refuses or fails for any reason
CHAPTER II to make such declaration within the time
Appraisal and Assessment of Real Property prescribed, the provincial, city or
SECTION 201. Appraisal of Real Property. – municipal assessor shall himself declare
All real property, whether taxable or the property in the name of the defaulting
exempt, shall be appraised at the current owner, if known, or against an unknown
and fair market value prevailing in the owner, as the case may be, and shall assess
locality where the property is situated. The the property for taxation in accordance
Department of Finance shall promulgate with the provision of this Title. No oath
the necessary rules and regulations for the shall be required of a declaration thus
classification, appraisal, and assessment of made by the provincial, city or municipal
real property pursuant to the provisions of assessor.
this Code. SECTION 205. Listing of Real Property in
SECTION 202. Declaration of Real Property the Assessment Rolls. – (a) In every
by the Owner or Administrator. – It shall be province and city, including the
the duty of all persons, natural or juridical, municipalities within the Metropolitan
owning or administering real property, Manila Area, there shall be prepared and
including the improvements therein, maintained by the provincial, city or
within a city or municipality, or their duly municipal assessor an assessment roll
authorized representative, to prepare, or wherein shall be listed all real property,
cause to be prepared, and file with the whether taxable or exempt, located within
provincial, city or municipal assessor, a the territorial jurisdiction of the local
sworn statement declaring the true value of government unit concerned. Real property
their property, whether previously declared shall be listed, valued and assessed in the
or undeclared, taxable or exempt, which name of the owner or administrator, or
shall be the current and fair market value anyone having legal interest in the
of the property, as determined by the property.
declarant. Such declaration shall contain a (b) The undivided real property of a
description of the property sufficient in deceased person may be listed, valued and
detail to enable the assessor or his deputy assessed in the name of the estate or of the
to identify the same for assessment heirs and devisees without designating
purposes. The sworn declaration of real them individually; and undivided real
property herein referred to shall be filed property other than that owned by a
with the assessor concerned once every deceased may be listed, valued and
three (3) years during the period from assessed in the name of one or more co-
January first (1st) to June thirtieth (30th) owners: Provided, however, That such heir,
commencing with the calendar year 1992. devisee, or co-owner shall be liable
SECTION 203. Duty of Person Acquiring severally and proportionately for all
Real Property or Making Improvement obligations imposed by this Title and the
Thereon. – It shall also be the duty of any payment of the real property tax with
person, or his authorized representative, respect to the undivided property.
acquiring at any time real property in any (c) The real property of a corporation,
municipality or city or making any partnership, or association shall be listed,
improvement on real property, to prepare, valued and assessed in the same manner as
or cause to be prepared, and file with the that of an individual.
provincial, city or municipal assessor, a (d) Real property owned by the Republic of
sworn statement declaring the true value of the Philippines, its instrumentalities and
subject property, within sixty (60) days political subdivisions, the beneficial use of
after the acquisition of such property or which has been granted, for consideration
or otherwise, to a taxable person, shall be dates of their most recent transfer or
listed, valued and assessed in the name of alienation accompanied by copies of
the possessor, grantee or of the public corresponding deeds of sale, donation, or
entity if such property has been acquired partition or other forms of alienation.
or held for resale or lease. (b) It shall also be the duty of the Registrar
SECTION 206. Proof of Exemption of Real of Deeds to require every person who shall
Property from Taxation. – Every person by present for registration a document of
or for whom real property is declared, who transfer, alienation, or encumbrance of real
shall claim tax exemption for such property property to accompany the same with a
under this Title shall file with the certificate to the effect that the real
provincial, city or municipal assessor property subject of the transfer, alienation,
within thirty (30) days from the date of the or encumbrance, as the case may be, has
declaration of real property sufficient been fully paid of all real property taxes
documentary evidence in support of such due thereon. Failure to provide such
claim including corporate charters, title of certificate shall be a valid cause for the
ownership, articles of incorporation, by- Registrar of Deeds to refuse the
laws, contracts, affidavits, certifications registration of the document.
and mortgage deeds, and similar SECTION 210. Duty of Official Issuing
documents. Building Permit or Certificate of
If the required evidence is not submitted Registration of Machinery to Transmit
within the period herein prescribed, the Copy to Assessor. – Any public official or
property shall be listed as taxable in the employee who may now or hereafter be
assessment roll. However, if the property required by law or regulation to issue to
shall be proven to be tax exempt, the same any person a permit for the construction,
shall be dropped from the assessment roll. addition, repair, or renovation of a
SECTION 207. Real Property Identification building, or permanent improvement on
System. – All declarations of real property land, or a certificate of registration for any
made under the provisions of this Title machinery, including machines,
shall be kept and filed under a uniform mechanical contrivances, and apparatus
classification system to be established by attached or affixed on land or to another
the provincial, city or municipal assessor. real property, shall transmit a copy of such
SECTION 208. Notification of Transfer of permit or certificate within thirty (30) days
Real Property Ownership. – Any person who of its issuance, to the assessor of the
shall transfer real property ownership to province, city or municipality where the
another shall notify the provincial, city or property is situated.
municipal assessor concerned within sixty SECTION 211. Duty of Geodetic Engineers
(60) days from the date of such transfer. to Furnish Copy of Plans to Assessor. – It
The notification shall include the mode of shall be the duty of all geodetic engineers,
transfer, the description of the property public or private, to furnish free of charge
alienated, the name and address of the to the assessor of the province, city or
transferee. municipality where the land is located with
SECTION 209. Duty of Registrar of Deeds a white or blue print copy of each of all
to Apprise Assessor of Real Property Listed approved original or subdivision plans or
in Registry. – (a) To ascertain whether or maps of surveys executed by them within
not any real property entered in the thirty (30) days from receipt of such plans
Registry of Property has escaped discovery from the Lands Management Bureau, the
and listing for the purpose of taxation, the Land Registration Authority, or the
Registrar of Deeds shall prepare and submit Housing and Land Use Regulatory Board, as
to the provincial, city or municipal the case may be.
assessor, within six (6) months from the SECTION 212. Preparation of Schedule of
date of effectivity of this Code and every Fair Market Values. – Before any general
year thereafter, an abstract of his registry, revision of property assessment is made
which shall include brief but sufficient pursuant to the provisions of this Title,
description of the real properties entered there shall be prepared a schedule of fair
therein, their present owners, and the market values by the provincial, city and
municipal assessors of the municipalities water and/or generation and transmission
within the Metropolitan Manila Area for the of electric power shall be classified as
different classes of real property situated special.
in their respective local government units SECTION 217. Actual Use of Real Property
for enactment by ordinance of the as Basis for Assessment. – Real property
sanggunian concerned. The schedule of fair shall be classified, valued and assessed on
market values shall be published in a the basis of its actual use regardless of
newspaper of general circulation in the where located, whoever owns it, and
province, city or municipality concerned, whoever uses it.
or in the absence thereof, shall be posted in SECTION 218. Assessment Levels.   – The
the provincial capitol, city or municipal assessment levels to be applied to the fair
hall and in two (2) other conspicuous public market value of real property to determine
places therein. its assessed value shall be fixed by
SECTION 213. Authority of Assessor to ordinances of the sangguniang
Take Evidence. – For the purpose of panlalawigan, sangguniang panlungsod or
obtaining information on which to base the sangguniang bayan of a municipality within
market value of any real property, the the Metropolitan Manila Area, at the rates
assessor of the province, city or not exceeding the following:
municipality or his deputy may summon (a) On Lands:
the owners of the properties to be affected CLASS
or persons having legal interest therein and
witnesses, administer oaths, and take Residential
deposition concerning the property, its
Agricultural
ownership, amount, nature, and value.
SECTION 214. Amendment of Schedule of Commercial
Fair Market Values. – The provincial, city Industrial
or municipal assessor may recommend to Mineral
the sanggunian concerned amendments to Timberland
correct errors in valuation in the schedule (b) On Buildings and Other Structures:
of fair market values. The sanggunian (1) Residential
concerned shall, by ordinance, act upon the Fair Market Value  Over Not Over
recommendation within ninety (90) days
P175,000.00
from receipt thereof.
P175,000.00 300,000.00
SECTION 215. Classes of Real Property for
Assessment Purposes. – For purposes of 300,000.00 500,000.00
assessment, real property shall be 500,000.00 750,000.00
classified as residential, agricultural, 750,000.00 1,000,000.00
commercial, industrial, mineral, timberland 1,000,000.00 2,000,000.00
or special. 2,000,000.00 5,000,000.00
The city or municipality within the 5,000,000.00 10,000,000.00
Metropolitan Manila Area, through their 10,000,000.00
respective sanggunian, shall have the
(2) Agricultural
power to classify lands as residential,
agricultural, commercial, industrial, Fair Market Value  Over Not Over
mineral, timberland, or special in P300,000.00
accordance with their zoning ordinances. P300,000.00 500,000.00
SECTION 216. Special Classes of Real 500,000.00 750,000.00
Property.  – All lands, buildings, and other 750,000.00 1,000,000.00
improvements thereon actually, directly 1,000,000.00 2,000,000.00
and exclusively used for hospitals, cultural, 2,000,000.00
or scientific purposes, and those owned
(3) Commercial / Industrial
and used by local water districts, and
government-owned or -controlled Fair Market Value  Over Not Over
corporations rendering essential public P300,000.00
services in the supply and distribution of P300,000.00 500,000.00
500,000.00 750,000.00 property listed and described in the
750,000.00 1,000,000.00 declaration irrespective of any previous
1,000,000.00 2,000,000.00 assessment or taxpayer’s valuation
thereon: Provided, however, That the
2,000,000.00 5,000,000.00
assessment of real property shall not be
5,000,000.00 10,000,000.00 increased oftener than once every three (3)
10,000,000.00 years except in case of new improvements
(4) Timberland substantially increasing the value of said
Fair Market Value Over Not Over property or of any change in its actual use.
P300,000.00 SECTION 221. Date of Effectivity of
P300,000.00 500,000.00 Assessment or Reassessment. – All
500,000.00 750,000.00 assessments or reassessments made after
the first (1st) day of January of any year
750,000.00 1,000,000.00
shall take effect on the first (1st) day of
1,000,000.00 2,000,000.00
January of the succeeding year: Provided,
2,000,000.00 however, That the reassessment of real
(c) On Machineries property due to its partial or total
Class destruction, or to a major change in its
Agricultural actual use, or to any great and sudden
Residential inflation or deflation of real property
Commercial values, or to the gross illegality of the
Industrial assessment when made or to any other
abnormal cause, shall be made within
(d) On Special Classes: The assessment levels for all lands, buildings, machineries
ninety (90) days from the date any such
and other improvements;
cause or causes occurred, and shall take
Actual Use effect at the beginning of the quarter next
Cultural following the reassessment.
Scientific SECTION 222. Assessment of Property
Hospital Subject to Back Taxes. – Real property
declared for the first time shall be assessed
Local water districts
Government-owned for taxes
or for- the period during which it
controlled would have been liable but in no case for
corporations
more
engaged in the supply andthan ten (10) years prior to the date
of initial
distribution of water assessment: Provided, however,
and/or
generation and transmissiontaxes
That such of shall be computed on the
electric power basis of the applicable schedule of values in
SECTION 219. General Revision of force during the corresponding period.
Assessments and Property Classification. – If such taxes are paid on or before the end
The provincial, city or municipal assessor of the quarter following the date the notice
shall undertake a general revision of real of assessment was received by the owner or
property assessments within two (2) years his representative, no interest for
after the effectivity of this Code and every delinquency shall be imposed thereon;
three (3) years thereafter. otherwise, such taxes shall be subject to an
SECTION 220. Valuation of Real Property. – interest at the rate of two percent (2%) per
In cases where (a) real property is declared month or a fraction thereof from the date
and listed for taxation purposes for the of the receipt of the assessment until such
first time; (b) there is an ongoing general taxes are fully paid.
revision of property classification and SECTION 223. Notification of New or
assessment; or (c) a request is made by the Revised Assessment. – When real property
person in whose name the property is is assessed for the first time or when an
declared, the provincial, city or municipal existing assessment is increased or
assessor or his duly authorized deputy decreased, the provincial, city or municipal
shall, in accordance with the provisions of assessor shall within thirty (30) days give
this Chapter, make a classification, written notice of such new or revised
appraisal and assessment of the real assessment to the person in whose name
the property is declared. The notice may be SECTION 227. Organization, Powers,
delivered personally or by registered mail Duties, and Functions of the Local Board of
or through the assistance of the punong Assessment Appeals. – (a) The Board of
barangay to the last known address of the Assessment Appeals of the province or city
person to be served. shall be composed of the Registrar of
SECTION 224. Appraisal and Assessment of Deeds, as Chairman, the provincial or city
Machinery. – (a) The fair market value of a prosecutor and the provincial, or city
brand-new machinery shall be the engineer as members, who shall serve as
acquisition cost. In all other cases, the fair such in an ex officio capacity without
market value shall be determined by additional compensation.
dividing the remaining economic life of the (b) The chairman of the Board shall have
machinery by its estimated economic life the power to designate any employee of the
and multiplied by the replacement or province or city to serve as secretary to the
reproduction cost. Board also without additional
(b) If the machinery is imported, the compensation.
acquisition cost includes freight, (c) The chairman and members of the Board
insurance, bank and other charges, of Assessment Appeals of the province or
brokerage, arrastre and handling, duties city shall assume their respective positions
and taxes, plus cost of inland without need of further appointment or
transportation, handling, and installation special designation immediately upon
charges at the present site. The cost in effectivity of this Code. They shall take
foreign currency of imported machinery oath or affirmation of office in the
shall be converted to peso cost on the basis prescribed form.
of foreign currency exchange rates as fixed (d) In provinces and cities without a
by the Central Bank. provincial or city engineer, the district
SECTION 225. Depreciation Allowance for engineer shall serve as member of the
Machinery. – For purposes of assessment, a Board. In the absence of the Registrar of
depreciation allowance shall be made for Deeds, or the provincial or city prosecutor,
machinery at a rate not exceeding five or the provincial or city engineer, or the
percent (5%) of its original cost or its district engineer, the persons performing
replacement or reproduction cost, as the their duties, whether in an acting capacity
case may be, for each year of use: Provided, or as a duly designated officer-in-charge,
however, That the remaining value for all shall automatically become the chairman
kinds of machinery shall be fixed at not or member, respectively, of the said Board,
less than twenty percent (20%) of such as the case may be.
original, replacement, or reproduction cost SECTION 228. Meetings and Expenses of
for so long as the machinery is useful and the Local Board of Assessment Appeals. –
in operation. (a) The Board of Assessment Appeals of the
CHAPTER III province or city shall meet once a month
Assessment Appeals and as often as may be necessary for the
SECTION 226. Local Board of Assessment prompt disposition of appealed cases. No
Appeals. – Any owner or person having legal member of the Board shall be entitled to
interest in the property who is not satisfied per diems or traveling expenses for his
with the action of the provincial, city or attendance in Board meetings, except when
municipal assessor in the assessment of his conducting an ocular inspection in
property may, within sixty (60) days from connection with a case under appeal.
the date of receipt of the written notice of (b) All expenses of the Board shall be
assessment, appeal to the Board of charged against the general fund of the
Assessment Appeals of the province or city province or city, as the case may be. The
by filing a petition under oath in the form sanggunian concerned shall appropriate the
prescribed for the purpose, together with necessary funds to enable the Board in
copies of the tax declarations and such their respective localities to operate
affidavits or documents submitted in effectively.
support of the appeal. SECTION 229. Action by the Local Board of
Assessment Appeals. – (a) The Board shall
decide the appeal within one hundred or Certified Public Accountants for at least
twenty (120) days from the date of receipt ten (10) years immediately preceding their
of such appeal. The Board, after hearing, appointment. The chairman of the Board of
shall render its decision based on Assessment Appeals shall have the salary
substantial evidence or such relevant grade equivalent to the rank of Director III
evidence on record as a reasonable mind under the Salary Standardization Law
might accept as adequate to support the exclusive of allowances and other
conclusion. emoluments. The members of the Board
(b) In the exercise of its appellate shall have the salary grade equivalent to
jurisdiction, the Board shall have the power the rank of Director II under the Salary
to summon witnesses, administer oaths, Standardization Law exclusive of
conduct ocular inspection, take allowances and other emoluments. The
depositions, and issue subpoena and Board shall have appellate jurisdiction over
subpoena duces tecum. The proceedings of all assessment cases decided by the Local
the Board shall be conducted solely for the Board of Assessment Appeals.
purpose of ascertaining the facts without There shall be Hearing Officers to be
necessarily adhering to technical rules appointed by the Central Board of
applicable in judicial proceedings. Assessment Appeals pursuant to civil
(c) The secretary of the Board shall furnish service laws, rules and regulations, one
the owner of the property or the person each for Luzon, Visayas and Mindanao, who
having legal interest therein and the shall hold office in Manila, Cebu City and
provincial or city assessor with a copy of Cagayan de Oro City, respectively, and who
the decision of the Board. In case the shall serve for a term of six (6) years,
provincial or city assessor concurs in the without reappointment until their
revision or the assessment, it shall be his successors have been appointed and
duty to notify the owner of the property or qualified. The Hearing Officers shall have
the person having legal interest therein of the same qualifications as that of the
such fact using the form prescribed for the Judges of the Municipal Trial Courts.
purpose. The owner of the property or the The Hearing Officers shall each have the
person having legal interest therein or the salary grade equivalent to the rank of
assessor who is not satisfied with the Director I under the Salary Standardization
decision of the Board, may, within thirty Law exclusive of allowances and other
(30) days after receipt of the decision of emoluments. The Hearing Officers shall try
said Board, appeal to the Central Board of and receive evidences on the appealed
Assessment Appeals, as herein provided. assessment cases as may be directed by the
The decision of the Central Board shall be Board.
final and executory. The Central Board Assessment Appeals, in
SECTION 230. Central Board of Assessment the performance of its powers and duties,
Appeals. – The Central Board of Assessment may establish and organize staffs, offices,
Appeals shall be composed of a chairman units, prescribe the titles, functions and
and two (2) members to be appointed by duties of their members and adopt its own
the President, who shall serve for a term of rules and regulations.
seven (7) years, without reappointment. Of Unless otherwise provided by law, the
those first appointed, the chairman shall annual appropriations for the Central Board
hold office for seven (7) years, one member of Assessment Appeals shall be included in
for five (5) years, and the other member for the budget of the Department of Finance in
three (3) years. Appointment to any the corresponding General Appropriations
vacancy shall be only for the unexpired Act.
portion of the term of the predecessor. In SECTION 231. Effect of Appeal on the
no case shall any member be appointed or Payment of Real Property Tax. – Appeal on
designated in a temporary or acting assessments of real property made under
capacity. The chairman and the members the provisions of this Code shall, in no
of the Board shall be Filipino citizens, at case, suspend the collection of the
least forty (40) years old at the time of corresponding realty taxes on the property
their appointment, and members of the Bar involved as assessed by the provincial or
city assessor, without prejudice to previously granted to, or presently enjoyed
subsequent adjustment depending upon the by, all persons, whether natural or
final outcome of the appeal. juridical, including all government-owned
CHAPTER IV or -controlled corporations are hereby
Imposition of Real Property Tax withdrawn upon the effectivity of this
SECTION 232. Power to Levy Real Property Code.
Tax. – A province or city or a municipality CHAPTER V
within the Metropolitan Manila Area my Special Levies on Real Property
levy an annual ad valorem tax on real SECTION 235. Additional Levy on Real
property such as land, building, machinery, Property for the Special Education Fund
and other improvement not hereinafter (SEF). – A province or city, or a
specifically exempted. municipality within the Metropolitan
SECTION 233. Rates of Levy. – A province Manila Area, may levy and collect an
or city or a municipality within the annual tax of one percent (1%) on the
Metropolitan Manila Area shall fix a assessed value of real property which shall
uniform rate of basic real property tax be in addition to the basic real property
applicable to their respective localities as tax. The proceeds thereof shall exclusively
follows: accrue to the Special Education Fund
(a) In the case of a province, at the rate not (SEF).
exceeding one percent (1%) of the assessed SECTION 236. Additional Ad Valorem Tax
value of real property; and on Idle Lands. – A province or city, or a
(b) In the case of a city or a municipality municipality within the Metropolitan
within the Metropolitan Manila Area, at the Manila Area, may levy an annual tax on idle
rate not exceeding two percent (2%) of the lands at the rate not exceeding five percent
assessed value of real property. (5%) of the assessed value of the property
SECTION 234. Exemptions from Real which shall be in addition to the basic real
Property Tax. – The following are exempted property tax.
from payment of the real property tax: SECTION 237. Idle Lands, Coverage. – For
(a) Real property owned by the Republic of purposes of real property taxation, idle
the Philippines or any of its political lands shall include the following: (a)
subdivisions except when the beneficial use Agricultural lands, more than one (1)
thereof has been granted, for consideration hectare in area, suitable for cultivation,
or otherwise, to a taxable person; dairying, inland fishery, and other
(b) Charitable institutions, churches, agricultural uses, one-half (1/2) of which
parsonages or convents appurtenant remain uncultivated or unimproved by the
thereto, mosques, non-profit or religious owner of the property or person having
cemeteries and all lands, buildings, and legal interest therein. Agricultural lands
improvements actually, directly, and planted to permanent or perennial crops
exclusively used for religious, charitable or with at least fifty (50) trees to a hectare
educational purposes; shall not be considered idle lands. Lands
(c) All machineries and equipment that are actually used for grazing purposes shall
actually, directly and exclusively used by likewise not be considered idle lands.
local water districts and government-owned (b) Lands, other than agricultural, located
or -controlled corporations engaged in the in a city or municipality, more than one
supply and distribution of water and/or thousand (1,000) square meters in area
generation and transmission of electric one-half (1/2) of which remain unutilized
power; or unimproved by the owner of the
(d) All real property owned by duly property or person having legal interest
registered cooperatives as provided for therein.
under R.A. No. 6938; and Regardless of land area, this section shall
(e) Machinery and equipment used for likewise apply to residential lots in
pollution control and environmental subdivisions duly approved by proper
protection. authorities, the ownership of which has
Except as provided herein, any exemption been transferred to individual owners, who
from payment of real property tax shall be liable for the additional tax:
Provided, however, That individual lots of estimated cost thereof, specify the metes
such subdivisions, the ownership of which and bounds by monuments and lines and
has not been transferred to the buyer shall the number of annual installments for the
be considered as part of the subdivision, payment of the special levy which in no
and shall be subject to the additional tax case shall be less than five (5) nor more
payable by subdivision owner or operator. than ten (10) years. The sanggunian
SECTION 238. Idle Lands Exempt from Tax. concerned shall not be obliged, in the
– A province or city or a municipality apportionment and computation of the
within the Metropolitan Manila Area may special levy, to establish a uniform
exempt idle lands from the additional levy percentage of all lands subject to the
by reason of force majeure, civil payment of the tax for the entire district,
disturbance, natural calamity or any cause but it may fix different rates for different
or circumstance which physically or legally parts or sections thereof, depending on
prevents the owner of the property or whether such land is more or less benefited
person having legal interest therein from by the proposed work.
improving, utilizing or cultivating the SECTION 242. Publication of Proposed
same. Ordinance Imposing a Special Levy. –
SECTION 239. Listing of Idle Lands by the Before the enactment of an ordinance
Assessor. – The provincial, city or imposing a special levy, the sanggunian
municipal assessor shall make and keep an concerned shall conduct a public hearing
updated record of all idle lands located thereon; notify in writing the owners of the
within his area of jurisdiction. For purposes real property to be affected or the persons
of collection, the provincial, city or having legal interest therein as to the date
municipal assessor shall furnish a copy and place thereof and afford the latter the
thereof to the provincial or city treasurer opportunity to express their positions or
who shall notify, on the basis of such objections relative to the proposed
record, the owner of the property or person ordinance.
having legal interest therein of the SECTION 243. Fixing the Amount of
imposition of the additional tax. Special Levy. – The special levy authorized
SECTION 240. Special Levy by Local herein shall be apportioned, computed, and
Government Units. – A province, city or assessed according to the assessed
municipality may impose a special levy on valuation of the lands affected as shown by
the lands comprised within its territorial the books of the assessor concerned, or its
jurisdiction specially benefited by public current assessed value as fixed by said
works projects or improvements funded by assessor if the property does not appear of
the local government unit concerned: record in his books. Upon the effectivity of
Provided, however, That the special levy the ordinance imposing special levy, the
shall not exceed sixty percent (60%) of the assessor concerned shall forthwith proceed
actual cost of such projects and to determine the annual amount of special
improvements, including the costs of levy assessed against each parcel of land
acquiring land and such other real property comprised within the area especially
in connection therewith: Provided, further, benefited and shall send to each landowner
That the special levy shall not apply to a written notice thereof by mail, personal
lands exempt from basic real property tax service or publication in appropriate cases.
and the remainder of the land portions of SECTION 244. Taxpayer’s Remedies
which have been donated to the local Against Special Levy. – Any owner of real
government unit concerned for the property affected by a special levy or any
construction of such projects or person having a legal interest therein may,
improvements. upon receipt of the written notice of
SECTION 241. Ordinance Imposing a assessment of the special levy, avail of the
Special Levy. – A tax ordinance imposing a remedies provided for in Chapter 3, Title
special levy shall describe with reasonable Two, Book II of this Code.
accuracy the nature, extent, and location SECTION 245. Accrual of Special Levy. –
of the public works projects or The special levy shall accrue on the first
improvements to be undertaken, state the day of the quarter next following the
effectivity of the ordinance imposing such SECTION 250. Payment of Real Property
levy. Taxes in Installments. – The owner of the
CHAPTER VI real property or the person having legal
Collection of Real Property Tax interest therein may pay the basic real
SECTION 246. Date of Accrual of Tax. – The property tax and the additional tax for
real property tax for any year shall accrue Special Education Fund (SEF) due thereon
on the first (1st) day of January and from without interest in four (4) equal
that date it shall constitute a lien on the installments: the first installment to be
property which shall be superior to any due and payable on or before the thirty-
other lien, mortgage, or encumbrance  of first (31st) of March; the second
any kind whatsoever, and shall be installment, on or before the thirty (30th)
extinguished only upon the payment of the of June; the third installment, on or before
delinquent tax. the thirtieth (30th) of September; and the
SECTION 247. Collection of Tax. – The last installment on or before the thirty-first
collection of the real property tax with (31st) of December, except the special levy
interest thereon and related expenses, and the payment of which shall be governed by
the enforcement of the remedies provided ordinance of the sanggunian concerned.
for in this Title or any applicable laws, shall The date for the payment of any other tax
be the responsibility of the city or imposed under this Title without interest
municipal treasurer concerned. shall be prescribed by the sanggunian
The city or municipal treasurer may concerned.
deputize the barangay treasurer to collect Payments of real property taxes shall first
all taxes on real property located in the be applied to prior years delinquencies,
barangay: Provided, That the barangay interests, and penalties, if any, and only
treasurer is properly bonded for the after said delinquencies are settled may tax
purpose: Provided, further, That the payments be credited for the current
premium on the bond shall be paid by the period.
city or municipal government concerned. SECTION 251. Tax Discount for Advanced
SECTION 248. Assessor to Furnish Local Prompt Payment. – If the basic real
Treasurer with Assessment Roll. – The property tax and the additional tax
provincial, city or municipal assessor shall accruing to the Special Education Fund
prepare and submit to the treasurer of the (SEF) are paid in advance in accordance
local government unit, on or before the with the prescribed schedule of payment as
thirty-first (31st) day of December each provided under Section 250, the
year, an assessment roll containing a list of sanggunian concerned may grant a
all persons whose real properties have been discount not exceeding twenty percent
newly assessed or reassessed and the (20%) of the annual tax due.
values of such properties. SECTION 252. Payment Under Protest. – (a)
SECTION 249. Notice of Time for Collection No protest shall be entertained unless the
of Tax. – The city or municipal treasurer taxpayer first pays the tax. There shall be
shall, on or before the thirty-first (31st) day annotated on the tax receipts the words
of January each year, in the case of the “paid under protest”. The protest in writing
basic real property tax and the additional must be filed within thirty (30) days from
tax for the Special Education Fund (SEF) or payment of the tax to the provincial, city
any other date to be prescribed by the treasurer or municipal treasurer, in the
sanggunian concerned in the case of any case of a municipality within Metropolitan
other tax levied under this Title, post the Manila Area, who shall decide the protest
notice of the dates when the tax may be within sixty (60) days from receipt.
paid without interest at a conspicuous and (b) The tax or a portion thereof paid under
publicly accessible place at the city or protest shall be held in trust by the
municipal hall. Said notice shall likewise be treasurer concerned.
published in a newspaper of general (c) In the event that the protest is finally
circulation in the locality once a week for decided in favor of the taxpayer, the
two (2) consecutive weeks. amount or portion of the tax protested
shall be refunded to the protestant, or
applied as tax credit against his existing or assessment or special levy is contested
future tax liability. administratively or judicially pursuant to
(d) In the event that the protest is denied the provisions of Chapter 3, Title II, Book
or upon the lapse of the sixty-day period II of this Code, the delinquent real property
prescribed in subparagraph (a), the will be sold at public auction, and the title
taxpayer may avail of the remedies as to the property will be vested in the
provided for in Chapter 3, Title II, Book II purchaser, subject, however, to the right of
of this Code. the delinquent owner of the property or
SECTION 253. Repayment of Excessive any person having legal interest therein to
Collections. – When an assessment of basic redeem the property within one (1) year
real property tax, or any other tax levied from the date of sale.
under this Title, is found to be illegal or SECTION 255. Interests on Unpaid Real
erroneous and the tax is accordingly Property Tax. – In case of failure to pay the
reduced or adjusted, the taxpayer may file basic real property tax or any other tax
a written claim for refund or credit for levied under this Title upon the expiration
taxes and interests with the provincial or of the periods as provided in Section 250,
city treasurer within two (2) years from the or when due, as the case may be, shall
date the taxpayer is entitled to such subject the taxpayer to the payment of
reduction or adjustment. interest at the rate of two percent (2%) per
The provincial or city treasurer shall decide month on the unpaid amount or a fraction
the claim for tax refund or credit within thereof, until the delinquent tax shall have
sixty (60) days from receipt thereof. In case been fully paid: Provided, however, That in
the claim for tax refund or credit is denied, no case shall the total interest on the
the taxpayer may avail of the remedies as unpaid tax or portion thereof exceed thirty-
provided in Chapter 3, Title II, Book II of six (36) months.
this Code. SECTION 256. Remedies For The Collection
SECTION 254. Notice of Delinquency in the Of Real Property Tax. – For the collection
Payment of the Real Property Tax. – (a) of the basic real property tax and any other
When the real property tax or any other tax tax levied under this Title, the local
imposed under this Title becomes government unit concerned may avail of
delinquent, the provincial, city or the remedies by administrative action
municipal treasurer shall immediately through levy on real property or by judicial
cause a notice of the delinquency to be action.
posted at the main entrance of the SECTION 257. Local Government’s Lien.  –
provincial capitol, or city or municipal hall The basic real property tax and any other
and in a publicly accessible and tax levied under this Title constitute a lien
conspicuous place in each barangay of the on the property subject to tax, superior to
local government unit concerned. The all liens, charges or encumbrances in favor
notice of delinquency shall also be of any person, irrespective of the owner or
published once a week for two (2) possessor thereof, enforceable by
consecutive weeks, in a newspaper of administrative or judicial action, and may
general circulation in the province, city, or only be extinguished upon payment of the
municipality. tax and the related interests and expenses.
(b) Such notice shall specify the date upon SECTION 258. Levy on Real Property. –
which the tax became delinquent and shall After the expiration of the time required to
state that personal property may be pay the basic real property tax or any other
distrained to effect payment. It shall tax levied under this Title, real property
likewise state that at any time before the subject to such tax may be levied upon
distraint of personal property, payment of through the issuance of a warrant on or
the tax with surcharges, interests and before, or simultaneously with, the
penalties may be made in accordance with institution of the civil action for the
the next following section, and unless the collection of the delinquent tax. The
tax, surcharges and penalties are paid provincial or city treasurer, or a treasurer
before the expiration of the year for which of a municipality within the Metropolitan
the tax is due, except when the notice of Manila Area, as the case may be, when
issuing a warrant of levy shall prepare a newspaper of general circulation in the
duly authenticated certificate showing the province, city or municipality where the
name of the delinquent owner of the property is located. The advertisement
property or person having legal interest shall specify the amount of the delinquent
therein, the description of the property, tax, the interest due thereon and expenses
the amount of the tax due and the interest of sale, the date and place of sale, the
thereon. The warrant shall operate with the name of the owner of the real property or
force of a legal execution throughout the person having legal interest therein, and a
province, city or a municipality within the description of the property to be sold. At
Metropolitan Manila Area. The warrant any time before the date fixed for the sale,
shall be mailed to or served upon the the owner of the real property or person
delinquent owner of the real property or having legal interest therein may stay the
person having legal interest therein, or in proceedings by paying the delinquent tax,
case he is out of the country or cannot be the interest due thereon and the expenses
located, the administrator or occupant of of sale. The sale shall be held either at the
the property. At the same time, written main entrance of the provincial, city or
notice of the levy with the attached municipal building, or on the property to
warrant shall be mailed to or served upon be sold, or at any other place as specified
the assessor and the Registrar of Deeds of in the notice of the sale.
the province, city or municipality within Within thirty (30) days after the sale, the
the Metropolitan Manila Area where the local treasurer or his deputy shall make a
property is located, who shall annotate the report of the sale to the sanggunian
levy on the tax declaration and certificate concerned, and which shall form part of his
of title of the property, respectively. records. The local treasurer shall likewise
The levying officer shall submit a report on prepare and deliver to the purchaser a
the levy to the sanggunian concerned certificate of sale which shall contain the
within ten (10) days after receipt of the name of the purchaser, a description of the
warrant by the owner of the property or property sold, the amount of the
person having legal interest therein. delinquent tax, the interest due thereon,
SECTION 259. Penalty for Failure to Issue the expenses of sale and a brief description
and Execute Warrant. – Without prejudice of the proceedings: Provided, however,
to criminal prosecution under the Revised That proceeds of the sale in excess of the
Penal Code and other applicable laws, any delinquent tax, the interest due thereon,
local treasurer or his deputy who fails to and the expenses of sale shall be remitted
issue or execute the warrant of levy within to the owner of the real property or person
one (1) year from the time the tax becomes having legal interest therein.
delinquent or within thirty (30) days from The local treasurer may, by ordinance duly
the date of the issuance thereof, or who is approved, advance an amount sufficient to
found guilty of abusing the exercise thereof defray the costs of collection through the
in an administrative or judicial proceeding remedies provided for in this Title,
shall be dismissed from the service. including the expenses of advertisement
SECTION 260. Advertisement and Sale. – and sale.
Within thirty (30) days after service of the SECTION 261. Redemption of Property
warrant of levy, the local treasurer shall Sold. – Within one (1) year from the date of
proceed to publicly advertise for sale or sale, the owner of the delinquent real
auction the property or a usable portion property or person having legal interest
thereof as may be necessary to satisfy the therein, or his representative, shall have
tax delinquency and expenses of sale. The the right to redeem the property upon
advertisement shall be effected by posting payment to the local treasurer of the
a notice at the main entrance of the amount of the delinquent tax, including
provincial, city or municipal building, and the interest due thereon, and the expenses
in a publicly accessible and conspicuous of sale from the date of delinquency to the
place in the barangay where the real date of sale, plus interest of not more than
property is located, and by publication two percent (2%) per month on the
once a week for two (2) weeks in a purchase price from the date of sale to the
date of redemption. Such payment shall representative, may redeem the property
invalidate the certificate of sale issued to by paying to the local treasurer the full
the purchaser and the owner of the amount of the real property tax and the
delinquent real property or person having related interest and the costs of sale. If the
legal interest therein shall be entitled to a property is not redeemed as provided
certificate of redemption which shall be herein, the ownership thereof shall be
issued by the local treasurer or his deputy. vested on the local government unit
From the date of sale until the expiration concerned.
of the period of redemption, the delinquent SECTION 264. Resale of Real Estate Taken
real property shall remain in the for Taxes, Fees, or Charges. – The
possession of the owner or person having sanggunian concerned may, by ordinance
legal interest therein who shall be entitled duly approved, and upon notice of not less
to the income and other fruits thereof. than twenty (20) days, sell and dispose of
The local treasurer or his deputy, upon the real property acquired under the
receipt from the purchaser of the preceding section at public auction. The
certificate of sale, shall forthwith return to proceeds of the sale shall accrue to the
the latter the entire amount paid by him general fund of the local government unit
plus interest of not more than two percent concerned.
(2%) per month. Thereafter, the property SECTION 265. Further Distraint or Levy. –
shall be free from the lien of such Levy may be repeated if necessary until the
delinquent tax, interest due thereon and full amount due, including all expenses, is
expenses of sale. collected.
SECTION 262. Final Deed to Purchaser. – In SECTION 266. Collection of Real Property
case the owner or person having legal Tax Through the Courts. – The local
interest therein fails to redeem the government unit concerned may enforce
delinquent property as provided herein, the the collection of the basic real property tax
local treasurer shall execute a deed or any other tax levied under this Title by
conveying to the purchaser said property, civil action in any court of competent
free from lien of the delinquent tax, jurisdiction. The civil action shall be filed
interest due thereon and expenses of sale. by the local treasurer within the period
The deed shall briefly state the proceedings prescribed in Section 270 of this Code.
upon which the validity of the sale rests. SECTION 267. Action Assailing Validity of
SECTION 263. Purchase of Property By the Tax Sale. – No court shall entertain any
Local Government Units for Want of Bidder. action assailing the validity of any sale at
– In case there is no bidder for the real public auction of real property or rights
property advertised for sale as provided therein under this Title until the taxpayer
herein, or if the highest bid is for an shall have deposited with the court the
amount insufficient to pay the real amount for which the real property was
property tax and the related interest and sold, together with interest of two percent
costs of sale the local treasurer conducting (2%) per month from the date of sale to the
the sale shall purchase the property in time of the institution of the action. The
behalf of the local government unit amount so deposited shall be paid to the
concerned to satisfy the claim and within purchaser at the auction sale if the deed is
two (2) days thereafter shall make a report declared invalid but it shall be returned to
of his proceedings which shall be reflected the depositor if the action fails.
upon the records of his office. It shall be Neither shall any court declare a sale at
the duty of the Registrar of Deeds public auction invalid by reason of
concerned upon registration with his office irregularities or informalities in the
of any such declaration of forfeiture to proceedings unless the substantive rights
transfer the title of the forfeited property of the delinquent owner of the real
to the local government unit concerned property or the person having legal interest
without the necessity of an order from a therein have been impaired.
competent court. SECTION 268. Payment of Delinquent
Within one (1) year from the date of such Taxes on Property Subject of Controversy. –
forfeiture, the taxpayer or any of his In any action involving the ownership or
possession of, or succession to, real SECTION 271. Distribution of Proceeds. –
property, the court may, motu proprio or The proceeds of the basic real property tax,
upon representation of the provincial, city, including interest thereon, and proceeds
or municipal treasurer or his deputy, award from the use, lease or disposition, sale or
such ownership, possession, or succession redemption of property acquired at a public
to any party to the action upon payment to auction, in accordance with the provisions
the court of the taxes with interest due on of this Title, by the province or city or a
the property and all other costs that may municipality within the Metropolitan
have accrued, subject to the final outcome Manila Area shall be distributed as follows:
of the action. (a) In the case of provinces:
SECTION 269. Treasurer to Certify (1) Province – Thirty-five percent (35%)
Delinquencies Remaining Uncollected. – shall accrue to the general fund;
The provincial, city or municipal treasurer (2) Municipality – Forty percent (40%) to
or his deputy shall prepare a certified list the general fund of the municipality where
of all real property tax delinquencies which the property is located; and
remained uncollected or unpaid for at least (3) Barangay – Twenty-five percent (25%)
one (1) year in his jurisdiction, and a shall accrue to the barangay where the
statement of the reason or reasons for such property is located.
non-collection or non-payment, and shall (b) In the case of cities:
submit the same to the sanggunian (1) City – Seventy percent (70%) shall
concerned on or before the thirty-first accrue to the general fund of the city; and
(31st) of December of the year immediately (2) Barangay – Thirty percent (30%) shall be
succeeding the year in which the distributed among the component
delinquencies were incurred, with a request barangays of the cities where the property
for assistance in the enforcement of the is located in the following manner:
remedies for collection provided herein. (i) Fifty percent (50%) shall accrue to the
SECTION 270. Periods Within Which to barangay where the property is located;
Collect Real Property Taxes. – The basic (ii) Fifty percent (50%) shall accrue equally
real property tax and any other tax levied to all component barangays of the city; and
under this Title shall be collected within (c) In the case of a municipality within the
five (5) years from the date they become Metropolitan Manila Area:
due. No action for the collection of the tax, (1) Metropolitan Manila Authority – Thirty-
whether administrative or judicial, shall be five percent (35%) shall accrue to the
instituted after the expiration of such general fund of the Authority;
period. In case of fraud or intent to evade (2) Municipality – Thirty-five percent (35%)
payment of the tax, such action may be shall accrue to the general fund of the
instituted for the collection of the same municipality where the property is located;
within ten (10) years from the discovery of (3) Barangays – Thirty percent (30%) shall
such fraud or intent to evade payment. be distributed among the component
The period of prescription within which to barangays of the municipality where the
collect shall be suspended for the time property is located in the following
during which: manner:
(1) The local treasurer is legally prevented (i) Fifty percent (50%) shall accrue to the
from collecting the tax; barangay where the property is located;
(2) The owner of the property or the person and
having legal interest therein requests for (ii) Fifty percent (50%) shall accrue equally
reinvestigation and executes a waiver in to all component barangays of the
writing before the expiration of the period municipality.
within which to collect; and (d) The share of each barangay shall be
(3) The owner of the property or the person released, without need of any further
having legal interest therein is out of the action, directly to the barangay treasurer
country or otherwise cannot be located. on a quarterly basis within five (5) days
CHAPTER VII after the end of each quarter and shall not
Disposition of Proceeds be subject to any lien or holdback for
whatever purpose.
SECTION 272. Application of Proceeds of decrease in the price of agricultural or
the Additional One Percent SEF Tax. – The agribased products, or calamity in any
proceeds from the additional one percent province, city or municipality, the
(1%) tax on real property accruing to the sanggunian concerned, by ordinance passed
Special Education Fund (SEF) shall be prior to the first (1st) day of January of any
automatically released to the local school year and upon recommendation of the
boards: Provided, That, in case of Local Disaster Coordinating Council,  may
provinces, the proceeds shall be divided condone or reduce, wholly or partially, the
equally between the provincial and taxes and interest thereon for the
municipal school boards: Provided, succeeding year or years in the city or
however, That the proceeds shall be municipality affected by the calamity.
allocated for the operation and SECTION 277. Condonation or Reduction of
maintenance of public schools, Tax by the President of the Philippines. –
construction and repair of school buildings, The President of the Philippines may, when
facilities and equipment, educational public interest so requires, condone or
research, purchase of books and reduce the real property tax and interest
periodicals, and sports development as for any year in any province or city or a
determined and approved by the local municipality within the Metropolitan
school board. Manila Area.
SECTION 273. Proceeds of the Tax on Idle SECTION 278. Duty of Registrar of Deeds
Lands. – The proceeds of the additional real and Notaries Public to Assist the
property tax on idle lands shall accrue to Provincial, City or Municipal Assessor. – It
the respective general fund of the province shall be the duty of the Registrar of Deeds
or city where the land is located. In the and notaries public to furnish the
case of a municipality within the provincial, city or municipal assessor with
Metropolitan Manila Area, the proceeds copies of all contracts selling, transferring,
shall accrue equally to the Metropolitan or otherwise conveying, leasing, or
Manila Authority and the municipality mortgaging real property received by, or
where the land is located. acknowledged before them.
SECTION 274. Proceeds of the Special SECTION 279. Insurance Companies to
Levy. – The proceeds of the special levy on Furnish Information. – Insurance
lands benefited by public works, projects companies are hereby required to furnish
and other improvements shall accrue to the provincial, city or municipal assessor
the general fund of the local government copies of any contract or policy insurance
unit which financed such public works, on buildings, structures, and improvements
projects or other improvements. insured by them or such other documents
CHAPTER VIII which may be necessary for the proper
Special Provisions assessment thereof.
SECTION 275. General Assessment SECTION 280. Fees in Court Actions. – All
Revision; Expenses Incident Thereto. – The court actions, criminal or civil, instituted
sanggunian of provinces, cities and at the instance of the provincial, city or
municipalities within the Metropolitan municipal treasurer or assessor under the
Manila Area shall provide the necessary provisions of this Code, shall be exempt
appropriations to defray the expenses from the payment of court and sheriff’s
incident to the general revision of real fees.
property assessment. SECTION 281. Fees in Registration of
All expenses incident to a general revision Papers or Documents on Sale of Delinquent
of real property assessments shall, by Real Property to Province, City or
ordinance of the sangguniang panlalawigan, Municipality. – All certificates, documents,
be apportioned between the province and and papers covering the sale of delinquent
the municipality on the basis of the taxable property to the province, city or
area of the municipality concerned. municipality, if registered in the Registry
SECTION 276. Condonation or Reduction of of Property, shall be exempt from the
Real Property Tax and Interest. – In case of documentary stamp tax and registration
a general failure of crops or substantial fees.
SECTION 282. Real Property Assessment services, be entitled to receive the amount
Notices or Owner’s Copies of Tax equivalent to the cost of devolved personal
Declarations to be Exempt from Postal services.
Charges or Fees. – All real property SECTION 285. Allocation to Local
assessment notices or owner’s copies of tax Government Units.  – The share of local
declaration sent through the mails by the government units in the internal revenue
assessor shall be exempt from the payment allotment shall be allocated in the
of postal charges or fees. following manner:
SECTION 283. Sale and Forfeiture Before (a) Provinces – Twenty-three percent (23%);
Effectivity of Code. – Tax delinquencies (b) Cities – Twenty-three percent (23%);
incurred, and sales and forfeitures of (c) Municipalities – Thirty-four percent
delinquent real property effected, before (34%); and
the effectivity of this Code shall be (d) Barangays – Twenty percent (20%)
governed by the provisions of applicable Provided, however, That the share of each
laws then in force. province, city, and municipality shall be
TITLE III determined on the basis of the following
Shares of Local Government Units in the formula:
Proceeds of National Taxes (a) Population – Fifty percent (50%);
CHAPTER I (b) Land Area – Twenty-five percent (25%);
Allotment of Internal Revenue and
SECTION 284. Allotment of Internal (c) Equal sharing – Twenty-five percent
Revenue Taxes.  – Local government units (25%)
shall have a share in the national internal Provided, further, That the share of each
revenue taxes based on the collection of barangay with a population of not less than
the third fiscal year preceding the current one hundred (100) inhabitants shall not be
fiscal year as follows: less than Eighty thousand (P80,000.00) per
(a) On the first year of the effectivity of annum chargeable against the twenty
this Code, thirty percent (30%); percent (20%) share of the barangay from
(b) On the second year, thirty-five percent the internal revenue allotment, and the
(35%); and balance to be allocated on the basis of the
(c) On the third year and thereafter, forty following formula:
percent (40%). (a) On the first year of the effectivity of
Provided, That in the event that the this Code:
National Government incurs an (1) Population – Forty percent (40%); and
unmanageable public sector deficit, the (2) Equal Sharing – Sixty percent (60%)
President of the Philippines is hereby (b) On the second year:
authorized, upon the recommendation of (1) Population – Fifty percent (50%); and
Secretary of Finance, Secretary of Interior (2) Equal Sharing – Fifty percent (50%)
and Local Government, and Secretary of (c) On the third year and thereafter:
Budget and Management, and subject to (1) Population – Sixty percent (60%); and
consultation with the presiding officers of (2) Equal sharing – Forty percent (40%).
both Houses of Congress and the presidents Provided, finally, That the financial
of the “liga”, to make the necessary requirements of barangays created by local
adjustments in the internal revenue government units after the effectivity of
allotment of local government units but in this Code shall be the responsibility of the
no case shall the allotment be less than local government unit concerned.
thirty percent (30%) of the collection of SECTION 286. Automatic Release of
national internal revenue taxes of the third Shares. – (a) The share of each local
fiscal year preceding the current fiscal government unit shall be released, without
year: Provided, further, That in the first need of any further action, directly to the
year of the effectivity of this Code, the provincial, city, municipal or barangay
local government units shall, in addition to treasurer, as the case may be, on a
the thirty percent (30%) internal revenue quarterly basis within five (5) days after the
allotment which shall include the cost of end of each quarter, and which shall not be
devolved functions for essential public subject to any lien or holdback that may be
imposed by the National Government for government agency or government-owned
whatever purpose. or -controlled corporation engaged in the
(b) Nothing in this Chapter shall be utilization and development of the national
understood to diminish the share of local wealth based on the following formula
government units under existing laws. whichever will produce a higher share for
SECTION 287. Local Development Projects. the local government unit:
– Each local government unit shall (a) One percent (1%) of the gross sales or
appropriate in its annual budget no less receipts of the preceding calendar year; or
than twenty percent (20%) of its annual (b) Forty percent (40%) of the mining taxes,
internal revenue allotment for development royalties, forestry and fishery charges and
projects. Copies of the development plans such other taxes, fees or charges, including
of local government units shall be related surcharges, interests, or fines the
furnished the Department of Interior and government agency or government-owned
Local Government. or -controlled corporation would have paid
SECTION 288. Rules and Regulations. – The if it were not otherwise exempt.
Secretary of Finance, in consultation with SECTION 292. Allocation of Shares. – The
the Secretary of Budget and Management, share in the preceding section shall be
shall promulgate the necessary rules and distributed in the following manner:
regulations for a simplified disbursement (a) Where the natural resources are located
scheme designed for the speedy and in the province:
effective enforcement of the provisions of (1) Province – Twenty percent (20%);
this Chapter. (2) Component City/Municipality – Forty-
CHAPTER II five percent (45%); and
Share of Local Government Units in the (3) Barangay – Thirty-five percent (35%)
National Wealth Provided, however, That where the natural
SECTION 289. Share in the Proceeds from resources are located in two (2) or more
the Development and Utilization of the provinces, or in two (2) or more component
National Wealth. – Local government units cities or municipalities or in two (2) or
shall have an equitable share in the more barangays, their respective shares
proceeds derived from the utilization and shall be computed on the basis of:
development of the national wealth within (1) Population – Seventy percent (70%); and
their respective areas, including sharing (2) Land area – Thirty percent (30%)
the same with the inhabitants by way of (b) Where the natural resources are located
direct benefits. in a highly urbanized or independent
SECTION 290. Amount of Share of Local component city:
Government Units.  – Local government (1) City – Sixty-five percent (65%); and
units shall, in addition to the internal (2) Barangay – Thirty-five percent (35%)
revenue allotment, have a share of forty Provided, however, That where the natural
percent (40%) of the gross collection resources are located in such two (2) or
derived by the national government from more cities, the allocation of shares shall
the preceding fiscal year from mining be based on the formula on population and
taxes, royalties, forestry and fishery land area as specified in paragraph (a) of
charges, and such other taxes, fees, or this section.
charges, including related surcharges, SECTION 293. Remittance of the Share of
interests, or fines, and from its share in Local Government Units. – The share of
any co-production, joint venture or local government units from the utilization
production sharing agreement in the and development of national wealth shall
utilization and development of the national be remitted in accordance with Section 286
wealth within their territorial jurisdiction. of this Code: Provided, however, That in
SECTION 291. Share of the Local the case of any government agency or
Governments from any Government Agency government-owned or -controlled
or Government-Owned or -Controlled corporation engaged in the utilization and
Corporation. – Local government units shall development of the national wealth, such
have a share based on the preceding fiscal share shall be directly remitted to the
year from the proceeds derived by any provincial, city, municipal or barangay
treasurer concerned within five (5) days lending institution short-, medium- and
after the end of each quarter. long-term loans and advances against
SECTION 294. Development and Livelihood security of real estate or other acceptable
Projects. – The proceeds from the share of assets for the establishment, development,
local government units pursuant to this or expansion of agricultural, industrial,
chapter shall be appropriated by their commercial, house financing and livelihood
respective sanggunian to finance local projects, and other economic enterprises.
development and livelihood projects: (c) Government financial and other lending
Provided, however, That at least eighty institutions are hereby authorized to grant
percent (80%) of the proceeds derived from loans, credits, and other forms of
the development and utilization of indebtedness out of their loanable funds to
hydrothermal. geothermal, and other local government units for purposes
sources of energy shall be applied solely to specified above.
lower the cost of electricity in the local SECTION 298. Deferred-Payment and other
government unit where such a source of Financial Schemes.  – Provincial, city and
energy is located. municipal governments may likewise
TITLE IV acquire property, plant, machinery,
Credit Financing equipment, and such necessary accessories
SECTION 295. Scope. – This Title shall under a supplier’s credit, deferred payment
govern the power of local government units plan, or other financial scheme.
to create indebtedness and to enter into SECTION 299. Bonds and Other Long-Term
credit and other financial transactions. Securities.  – Subject to the rules and
SECTION 296. General Policy.  – (a) It shall regulations of the Central Bank and the
be the basic policy that any local Securities and Exchange Commission,
government unit may create indebtedness, provinces, cities, and municipalities are
and avail of credit facilities to finance local hereby authorized to issue bonds,
infrastructure and other socio-economic debentures, securities, collaterals, notes
development projects in accordance with and other obligations to finance self-
the approved local development plan and liquidating, income-producing development
public investment program. or livelihood projects pursuant to the
(b) A local government unit may avail of priorities established in the approved local
credit lines from government or private development plan or the public investment
banks and lending institutions for the program. The sanggunian concerned shall,
purpose of stabilizing local finances. through an ordinance approved by a
SECTION 297. Loans, Credits, and Other majority of all its members, declare and
Forms of Indebtedness of Local state the terms and conditions of the bonds
Government Units.   – (a) A local and the purpose for which the proposed
government unit may contract loans, indebtedness is to be incurred.
credits, and other forms of indebtedness SECTION 300. Inter-Local Government
with any government or domestic private Loans, Grants, and Subsidies.  – Provinces,
bank and other lending institutions to cities, and municipalities may, upon
finance the construction, installation, approval of the majority of all members of
improvement, expansion, operation, or the sanggunian concerned and in amounts
maintenance of public facilities, not exceeding their surplus funds, extend
infrastructure facilities, housing projects, loans, grants, or subsidies to other local
the acquisition of real property, and the government units under such terms and
implementation of other capital conditions as may be agreed upon by the
investment projects, subject to such terms contracting parties.
and conditions as may be agreed upon by Local government units may, upon
the local government unit and the lender. approval of their respective sanggunians,
The proceeds from such transactions shall jointly or severally contract loans, credits,
accrue directly to the local government and other forms of indebtedness for
unit concerned. purposes mutually beneficial to them.
(b) A local government unit may likewise SECTION 301. Loans from Funds Secured
secure from any government bank and by the National Government from Foreign
Sources.  – (a) The President or his duly and public investment programs priority
authorized representative may, through projects that may be financed, constructed,
any government financial or other lending operated and maintained by the private
institution, relend to any province, city, sector under this section. It shall be the
municipality, or barangay, the proceeds of duty of the local government unit
loans contracted with foreign financial concerned to disclose to the public all
institutions or other international funding projects eligible for financing under this
agencies for the purpose of financing the section, including official notification of
construction, installation, improvement, duly registered contractors and publication
expansion, operation, or maintenance of in newspapers of general or local
public utilities and facilities, infrastructure circulation and in conspicuous and
facilities, or housing projects, the accessible public places. Local projects
acquisition of real property, and the under the build-operate-and-transfer
implementation of other capital agreement shall be confirmed by the local
investment projects, subject to such terms development councils.
and conditions as may be agreed upon by (c) Projects implemented under this section
the President and the local government shall be subject to the following terms and
unit. The proceeds from such loans shall conditions:
accrue directly to the local government (1) The provincial, city or municipal
concerned. engineer, as the case may be, upon formal
(b) The President may likewise authorize request in writing by the local chief
the relending to local government units the executive, shall prepare the plans and
proceeds of grants secured from foreign specifications for the proposed projects,
sources, subject to the provisions of which shall be submitted to the sanggunian
existing laws and the applicable grant for approval.
agreements. (2) Upon approval by the sanggunian of the
(c) Repayment or amortization of loans, project plans and specifications, the
including accrued interest thereon, may be provincial, city, or municipal engineer
financed partly from the income of the shall, as the case may be, cause to be
projects or services and from the regular published once every week, for two (2)
income of the local government unit, which consecutive weeks in at least one (1) local
must be provided for and appropriated newspaper which is circulated in the
regularly in its annual budget until the loan region, province, city or municipality in
and the interest thereon shall have been which the project is to be implemented, a
fully paid. notice inviting all duly qualified
SECTION 302. Financing, Construction, contractors to participate in a public
Maintenance, Operation, and Management bidding for the projects so approved. The
of Infrastructure Projects by the Private conduct of public bidding and award of
Sector. – (a) Local government units may contracts for local government projects
enter into contracts with any duly under this section shall be in accordance
prequalified individual contractor, for the with this Code and other applicable laws,
financing, construction, operation, and rules and regulations.
maintenance of any financially viable In the case of a build-operate-and-transfer
infrastructure facilities, under the build- agreement, the contract shall be awarded
operate-transfer agreement, subject to the to the lowest complying bidder whose offer
applicable provisions of Republic Act is deemed most advantageous to the local
Numbered Sixty-nine hundred fifty-seven government and based on the present value
(R.A. No. 6957) authorizing the financing, of its proposed tolls, fees, rentals, and
construction, operation and maintenance charges over a fixed term for the facility to
of infrastructure projects by the private be constructed, operated, and maintained
sector and the rules and regulations issued according to the prescribed minimum
thereunder and such terms and conditions design and performance standards, plans,
provided in this section. and specifications. For this purpose, the
(b) Local government units shall include in winning contractor shall be automatically
their respective local development plans granted by the local government unit
concerned the franchise to operate and accordance with the schedule proposed in
maintain the facility, including the the bid and incorporated in the contract.
collection of tolls, fees, rentals, and In case of land reclamation or construction
charges in accordance with subsection (c-4) of industrial estates, the repayment plan
hereof. may consist of the grant of a portion or
In the case of a build-operate-and-transfer percentage of the reclaimed land or the
agreement, the contract shall be awarded industrial estate constructed.
to the lowest complying bidder based on (5) Every infrastructure project undertaken
the present value of its proposed schedule under this section shall be constructed,
of amortization payments for the facility to operated, and maintained by the contractor
be constructed according to the prescribed under the technical supervision of the local
minimum design and performance government unit and in accordance with
standards, plans, and specifications. the plans, specifications, standards, and
(3) Any contractor who shall undertake the costs approved by it.
prosecution of any project under this (d) The provincial, city, or municipal legal
section shall post the required bonds to officer shall, as the case may be, review the
protect the interest of the province, city, contracts executed pursuant to this section
or municipality, in such amounts as may be to determine their legality, validity,
fixed by the sanggunian concerned and the enforceability and correctness of form.
provincial, city or municipal engineer shall SECTION 303. Remedies and Sanctions. –
not, as the case may be, allow any Local government unit shall appropriate in
contractor to initiate the prosecution of their respective annual budgets such
projects under this section unless such amounts as are sufficient to pay the loans
contractor presents proof or evidence that and other indebtedness incurred or redeem
he has posted the required bond. or retire bonds, debentures, securities,
(4) The contractor shall be entitled to a notes and other obligations issued under
reasonable return of its investment in this Title: Provided, That failure to provide
accordance with its bid proposal as the appropriations herein required shall
accepted by the local government unit render their annual budgets inoperative.
concerned. TITLE V
In the case of a build-operate-and-transfer Local Fiscal Administration
agreement, the repayment shall be made by CHAPTER I
authorizing the contractor to charge and General Provisions
collect reasonable tolls, fees, rentals, and SECTION 304. Scope. – This Title shall
charges for the use of the project facility govern the conduct and management of
not exceeding those proposed in the bid financial affairs, transactions, and
and incorporated in the contract: Provided, operations of provinces, cities,
That the local government unit concerned municipalities, and barangays.
shall, based on reasonableness and equity, SECTION 305. Fundamental Principles. –
approve the tolls, fees, rentals and charges: The financial affairs, transactions, and
Provided, further, That the imposition and operations of local government units shall
collection of tolls, fees, rentals and charges be governed by the following fundamental
shall be for a fixed period as proposed in principles:
the bid and incorporated in the contract (a) No money shall be paid out of the local
which shall in no case exceed fifty (50) treasury except in pursuance of an
years: Provided, finally, That during the appropriations ordinance or law;
lifetime of the contract, the contractor (b) Local government funds and monies
shall undertake the necessary maintenance shall be spent solely for public purposes;
and repair of the facility in accordance (c) Local revenue is generated only from
with standards prescribed in the bidding sources expressly authorized by law or
documents and in the contract. ordinance, and collection thereof shall at
In the case of a build-operate-and-transfer all times be acknowledged properly;
agreement, the repayment shall be made (d) All monies officially received by a local
through amortization payments in government officer in any capacity or on
any occasion shall be accounted for as local local government funds under specified
funds, unless otherwise provided by law; conditions or for specific purposes;
(e) Trust funds in the local treasury shall (c) “Budget Document” refers to the
not be paid out except in fulfillment of the instrument used by the local chief
purpose for which the trust was created or executive to present a comprehensive
the funds received; financial plan to the sanggunian concerned;
(f) Every officer of the local government (d) “Capital Outlays” refers to
unit whose duties permit or require the appropriations for the purchase of goods
possession or custody of local funds shall and services, the benefits of which extend
be properly bonded, and such officer shall beyond the fiscal year and which add to the
be accountable and responsible for said assets of the local government unit
funds and for the safekeeping thereof in concerned, including investments in public
conformity with the provisions of law; utilities such as public markets and
(g) Local governments shall formulate slaughterhouses;
sound financial plans, and local budgets (e) “Continuing Appropriation” refers to an
shall be based on functions, activities, and appropriation available to support
projects, in terms of expected results; obligations for a specified purpose or
(h) Local budget plans and goals shall, as projects, such as those for the construction
far as practicable, be harmonized with of physical structures or for the acquisition
national development plans, goals, and of real property or equipment, even when
strategies in order to optimize the these obligations are incurred beyond the
utilization of resources and to avoid budget year;
duplication in the use of fiscal and physical (f) “Current Operating Expenditures” refers
resources; to appropriations for the purchase of goods
(i) Local budgets shall operationalize and services for the conduct of normal
approved local development plans; local government operations within the
(j) Local government units shall ensure that fiscal year, including goods and services
their respective budgets incorporate the that will be used or consumed during the
requirements of their component units and budget year;
provide for equitable allocation of (g) “Expected Results” refers to the
resources among these component units; services, products, or benefits that shall
(k) National planning shall be based on local accrue to the public, estimated in terms of
planning to ensure that the needs and performance measures or physical targets;
aspirations of the people as articulated by (h) “Fund” refers to a sum of money, or
the local government units in their other assets convertible to cash, set aside
respective local development plans are for the purpose of carrying out specific
considered in the formulation of budgets of activities or attaining certain objectives in
national line agencies or offices; accordance with special regulations,
(l) Fiscal responsibility shall be shared by restrictions, or limitations, and constitutes
all those exercising authority over the an independent fiscal and accounting
financial affairs, transactions, and entity;
operations of the local government units; (i) “Income” refers to all revenues and
and receipts collected or received forming the
(m) The local government unit shall gross accretions of funds of the local
endeavor to have a balanced budget in each government unit;
fiscal year of operation. (j) “Obligations” refers to an amount
SECTION 306. Definition of Terms. – When committed to be paid by the local
used in this Title, the term: government unit for any lawful act made by
(a) “Annual Budget” refers to a financial an accountable officer for and in behalf of
plan embodying the estimates of income the local government unit concerned;
and expenditures for one (1) fiscal year; (k) “Personal Services” refers to
(b) “Appropriation” refers to an appropriations for the payment of salaries,
authorization made by ordinance, directing wages and other compensation of
the payment of goods and services from permanent, temporary, contractual, and
casual employees of the local government purposes prescribed in Section 272 of this
unit; Code; and
(l) “Receipts” refers to income realized (b) Trust funds shall consist of private and
from operations and activities of the local public monies which have officially come
government or are received by it in the into the possession of the local government
exercise of its corporate functions, or of a local government official as trustee,
consisting of charges for services rendered, agent or administrator, or which have been
conveniences furnished, or the price of a received as a guaranty for the fulfillment of
commodity sold, as well as loans, some obligation. A trust fund shall only be
contributions or aids from other entities, used for the specific purpose for which it
except provisional advances for budgetary was created or for which it came into the
purposes; and possession of the local government unit.
(m) “Revenue” refers to income derived SECTION 310. Separation of Books and
from the regular system of taxation Depository Accounts. – Local accountants
enforced under authority of law or and treasurers shall maintain separate
ordinance, and, as such, accrue more or books and depository accounts,
less regularly every year. respectively, for each fund in their custody
CHAPTER II or administration under such rules and
Local and Other Special Funds regulations as the Commission on Audit
ARTICLE I may prescribe.
Receipts, Safekeeping Article and SECTION 311. Depository Accounts. – Local
Disposition of Local Funds treasurers shall maintain depository
SECTION 307. Remittance of Government accounts in the name of their respective
Monies to the Local Treasury. – Officers of local government units with banks,
the local government authorized to receive preferably government-owned, located in or
and collect monies arising from taxes, nearest to their respective areas of
revenues, or receipts of any kind shall jurisdiction. Earnings of each depository
remit the full amount received and account shall accrue exclusively thereto.
collected to the treasury of such local SECTION 312. Separation of Personal
government unit which shall be credited to Money from Public Funds. – Local
the particular account or accounts to treasurers and other accountable officers
which the monies in question properly shall keep personal monies separate and
belong. distinct from local public funds in their
SECTION 308. Local Funds. – Every local custody and shall not make profit out of
government unit shall maintain a General public money or otherwise apply the same
Fund which shall be used to account for to any use not authorized by law or
such monies and resources as may be ordinance.
received by and disbursed from the local ARTICLE II
treasury. The General Fund shall consist of Special Accounts
monies and resources of the local SECTION 313. Special Accounts to be
government which are available for the Maintained in the General Fund. – Local
payment of expenditures, obligations or government units shall maintain special
purposes not specifically declared by law as accounts in the general fund for the
accruing and chargeable to, or payable following:
from, any other fund. (a) Public utilities and other economic
SECTION 309. Special Funds. – There shall enterprises;
be maintained in every provincial, city, or (b) Loans, interests, bond issues, and other
municipal treasury the following special contributions for specific purposes; and
funds: (c) Development projects funded from the
(a) Special Education Fund (SEF) which share of the local government unit
shall consist of the respective shares of concerned in the internal revenue
provinces, cities, municipalities and allotment and such other special accounts
barangays in the proceeds of the additional which may be created by law or ordinance.
tax on real property to be appropriated for
Receipts, transfers, and expenditures (v) All essential facts regarding the bonded
involving the foregoing special accounts and other long-term obligations and
shall be properly taken up thereunder. indebtedness of the local government unit,
Profits or income derived from the if any;
operation of public utilities and other (vi) Summary statement of all statutory
economic enterprises, after deduction for and contractual obligations due; and
the cost of improvement, repair and other (vii) Such other financial statements and
related expenses of the public utility or data as are deemed necessary or desirable
economic enterprise concerned, shall first in order to disclose in all practicable detail
be applied for the return of the advances or the financial condition of the local
loans made therefor. Any excess shall form government unit.
part of the general fund of the local SECTION 315. Submission of Detailed
government unit concerned. Statements of Income and Expenditures. –
CHAPTER III (a) On or before the fifteenth (15th) day of
Budgeting July of each year, local treasurers shall
ARTICLE I submit to their respective local chief
Local Government Budgets executives a certified statement covering
SECTION 314. Form and Content. – (a) the income and expenditures of the
Local government budgets shall primarily preceding fiscal year, the actual income
consists of two (2) parts: and expenditures of the first two (2)
(1) The estimates of income; and quarters of the current year, and the
(2) The total appropriations covering the estimated income and expenditures for the
current operating expenditures and capital last two (2) quarters of the current year.
outlays. SECTION 316. Local Finance Committee. –
(b) The budget document shall contain: There is hereby created in every province,
(1) A budget message of the local chief city or municipality a local finance
executive setting forth in brief the committee to be composed of the local
significance of the executive budget, planning and development officer, the local
particularly in relation to the approved budget officer, and the local treasurer. It
local development plan; shall exercise the following functions:
(2) A brief summary of the functions, (a) Determine the income reasonably
projects, and activities to be accomplished projected as collectible for the ensuing
in pursuit of the goals and objectives of the fiscal year;
local government unit for the ensuing fiscal (b) Recommend the appropriate tax and
year, specifically the delivery of basic other revenue measures or borrowings
services or facilities enumerated under which may be appropriate to support the
Section 17 of this Code; budget;
(3) Summary of financial statements (c) Recommend to the local chief executive
setting forth: concerned the level of the annual
(i) The actual income and expenditures expenditures and the ceilings of spending
during the immediately preceding year; for economic, social, and general services
(ii) The actual income and expenditures of based on the approved local development
the first two (2) quarters and the estimates plans;
of income and expenditures for the last two (d) Recommend to the local chief executive
(2) quarters of the current fiscal year; concerned the proper allocation of
(iii) The estimates of income for the expenditures for each development activity
ensuing fiscal year from ordinances and between current operating expenditures
laws existing at the time the proposed and capital outlays;
budget is transmitted, together with other (e) Recommend to the local chief executive
revenue-raising proposals; concerned the amount to be allocated for
(iv) The estimated expenditures necessary capital outlay under each development
to carry out the functions, projects, and activity or infrastructure project;
activities of the local government unit for (f) Assist the sangguniang panlalawigan in
the ensuing fiscal year; the review and evaluation of budget of
component cities and municipalities in the
case of provincial finance committee, the (2) Organizational charts and staffing
barangay budgets in the case of city or patterns indicating the list of plantilla
municipal finance committee, and positions with their corresponding salaries,
recommend the appropriate action thereon; and proposals for reclassification of
(g) Assist the sanggunian concerned in the positions and salary changes, as well as the
analysis and review of annual regular and creation of new positions with their
supplemental budgets of the respective proposed salary grade, duly supported by
local government unit to determine proper justification;
compliance with statutory and (3) Brief description of the functions,
administrative requirements; and projects and activities for the ensuing
(h) Conduct semi-annual review and general fiscal year, expected results for each
examination of cost and accomplishments function, project and activity, and the
against performance standards applied in nature of work to be performed, including
undertaking development projects. the objects of expenditure for each
A copy of this report shall be furnished the function, project and activity;
local chief executive and the sanggunian (4) Relation of the work and financial
concerned, and shall be posted in proposals to approved local development
conspicuous and publicly accessible places plans;
in the provinces, cities, municipalities and (5) Estimated current operating
barangays. expenditures and capital outlays with
SECTION 317. Submission of Budget comparative data for the last two (2)
Proposals by Heads of Departments or preceding, current, and ensuing fiscal
Offices. – (a) Each head of department or years; and
office shall submit a budget proposal for his (6) Accomplishment reports for the last two
department or office to the local chief (2) preceding and current fiscal years.
executive on or before the fifteenth (15th) SECTION 318. Preparation of the Budget by
of July of each year: Provided, That the the Local Chief Executive. – Upon receipt of
budget proposal of each department of the statements of income and expenditures
office shall be categorized under either from the treasurer, the budget proposals of
economic, social or general services: the heads of departments and offices, and
Provided, further, That each service shall the estimates of income and budgetary
be covered by the budget of at least one (1) ceilings from the local finance committee,
department or office of the local the local chief executive shall prepare the
government unit concerned. executive budget for the ensuing fiscal year
The said budget proposal shall be prepared in accordance with the provisions of this
in accordance with such policy and Title.
program guidelines as the local chief The local chief executive shall submit the
executive concerned may issue in said executive budget to the sanggunian
conformity with the local development concerned not later than the sixteenth
plan, the budgetary ceilings prescribed by (16th) of October of the current fiscal year.
the local finance committee, and the Failure to submit such budget on the date
general requirements prescribed in this prescribed herein shall subject the local
Title. chief executive to such criminal and
(b) Budget proposals of departments or administrative penalties as provided for
offices shall be divided into two (2) primary under this Code and other applicable laws.
categories, namely: the current operating SECTION 319. Legislative Authorization of
expenditures and the capital outlays. Such the Budget. – On or before the end of the
budget proposals shall contain the current fiscal year, the sanggunian
following information: concerned shall, through an ordinance, the
(1) Objectives, functions, and projects annual budget of the local government unit
showing the general character and relative for the ensuing fiscal year on the basis of
importance of the work to be accomplished the estimates of income and expenditures
or the services to be rendered, and the cost submitted by the local chief executive.
thereof; SECTION 320. Effectivity of Budgets. – The
ordinance enacting the annual budget shall
take effect at the beginning of the ensuing therefor have been fully paid or otherwise
calendar year. An ordinance enacting a settled.
supplemental budget, however, shall take The balances of continuing appropriations
effect upon its approval or on the date shall be reviewed as part of the annual
fixed therein. budget preparation and the sanggunian
The responsibility for the execution of the concerned may approve, upon
annual and supplemental budgets and the recommendation of the local chief
accountability therefor shall be vested executive, the reversion of funds no longer
primarily in the local chief executive needed in connection with the activities
concerned. funded by said continuing appropriations
SECTION 321. Changes in the Annual subject to the provisions of this section.
Budget. – All budgetary proposals shall be SECTION 323. Failure to Enact the Annual
included and considered in the budget Appropriations. – In case the sanggunian
preparation process. After the local chief concerned fails to pass the ordinance
executive concerned shall have submitted authorizing the annual appropriations at
the executive budget to the sanggunian, no the beginning of the ensuing fiscal year, it
ordinance providing for a supplemental shall continue to hold sessions, without
budget shall be enacted, except when additional remuneration for its members,
supported by funds actually available as until such ordinance is approved, and no
certified by the local treasurer or by new other business may be taken up during
revenue sources. such sessions. If the sanggunian still fails
A supplemental budget may also be enacted to enact such ordinance after ninety (90)
in times of public calamity by way of days from the beginning of the fiscal year,
budgetary realignment to set aside the ordinance authorizing the
appropriations for the purchase of supplies appropriations of the preceding year shall
and materials or the payment of services be deemed reenacted and shall remain in
which are exceptionally urgent or force and effect until the ordinance
absolutely indispensable to prevent authorizing the proposed appropriations is
imminent danger to, or loss of, life or passed by the sanggunian concerned.
property, in the jurisdiction of the local However, only the annual appropriations
government unit or in other areas declared for salaries and wages of existing positions,
in a state of calamity by the President. statutory and contractual obligations, and
Such ordinance shall clearly indicate the essential operating expenses authorized in
sources of funds available for the annual and supplemental budgets for
appropriations, as certified under oath by the preceding year shall be deemed
the local treasurer and local accountant reenacted and disbursement of funds shall
and attested to by the local chief be in accordance therewith.
executive, and the various items of In the implementation of such reenacted
appropriations affected and the reasons for ordinance, the local treasurer concerned
the change. shall exclude from the estimates of income
SECTION 322. Reversion of Unexpended for the preceding fiscal year those realized
Balances of Appropriations, Continuing from nonrecurring sources, like national
Appropriations. – Unexpended balances of aids, proceeds from loans, sale of assets,
appropriations authorized in the annual prior year adjustments, and other
appropriations ordinance shall revert to the analogous sources of income. No ordinance
unappropriated surplus of the general fund authorizing supplemental appropriations
at the end of the fiscal year and shall not shall be passed in place of the annual
thereafter be available for the expenditure appropriations.
except by subsequent enactment. However, In case the revised income estimates be
appropriations for capital outlays shall less than the aggregate reenacted
continue and remain valid until fully spent, appropriations, the local treasurer
reverted or the project is completed. concerned shall accordingly advise the
Reversions of continuing appropriations sanggunian concerned which shall, within
shall not be allowed unless obligations ten (10) days from the receipt of such
advice, make the necessary adjustments or
reductions. The revised appropriations and fifty-five percent (55%) in the case of
authorized by the sanggunian concerned fourth class or lower, of the total annual
shall then be the basis for disbursements. income from regular sources realized in the
SECTION 324. Budgetary Requirements. – next preceding fiscal year. The
The budgets of local government units for appropriations for salaries, wages,
any fiscal year shall comply with the representation and transportation
following requirements: allowances of officials and employees of the
(a) The aggregate amount appropriated public utilities and economic enterprises
shall not exceed the estimates of income; owned, operated, and maintained by the
(b) Full provision shall be made for all local government unit concerned shall not
statutory and contractual obligations of the be included in the annual budget or in the
local government unit concerned: Provided, computation of the maximum amount for
however, That the amount of personal services. The appropriations for
appropriations for debt servicing shall not the personal services of such economic
exceed twenty percent (20%) of the regular enterprises shall be charged to their
income of the local government unit respective budgets;
concerned; (b) No official or employee shall be entitled
(c) In the case of provinces, cities, and to a salary rate higher than the maximum
municipalities, aid to component barangays fixed for his position or other positions of
shall be provided in amounts of not less equivalent rank by applicable laws or rules
than One thousand pesos (P1,000.00) per and regulations issued thereunder;
barangay; and (c) No local fund shall be appropriated to
(d) Five percent (5%) of the estimated increase or adjust salaries or wages of
revenue from regular sources shall be set officials and employees of the national
aside as annual lump sum appropriations government, except as may be expressly
for relief, rehabilitation, reconstruction authorized by law;
and other works or services in connection (d) In cases of abolition of positions and the
with calamities which may occur during creation of new ones resulting from the
the budget year.  Provided, however, That abolition of existing positions in the career
such fund shall be used only in the area, or service, such abolition or creation shall be
a portion thereof, of the local government made in accordance with pertinent
unit or other areas affected by a disaster or provisions of this Code and the civil service
calamity, as determined and declared by law, rules and regulations;
the local sanggunian concerned. (e) Positions in the official plantilla for
Calamity shall be defined as a state of career positions which are occupied by
extreme distress or misfortune, produced incumbents holding permanent
by some adverse circumstance or event or appointments shall be covered by adequate
any great misfortune or cause or loss or appropriations;
misery caused by natural forces. (f) No changes in designation or
In case of fire or conflagration, the nomenclature of positions resulting in a
calamity fund shall be utilized only for promotion or demotion in rank or increase
relief operations. or decrease in compensation shall be
The local development council shall more allowed, except when the position is
monitor the use and disbursement of the actually vacant, and the filling of such
calamity fund. positions shall be strictly made in
SECTION 325. General Limitations. – The accordance with the civil service law, rules
use of the provincial, city, and municipal and regulations;
funds shall be subject to the following (g) The creation of new positions and salary
limitations: increases or adjustments shall in no case
(a) The total appropriations, whether be made retroactive; and
annual or supplemental, for personal (h) The annual appropriations for
services of a local government unit for one discretionary purposes of the local chief
(1) fiscal year shall not exceed forty-five executive shall not exceed two percent (2%)
percent (45%) in the case of first to third of the actual receipts derived from basic
class provinces, cities and municipalities, real property tax in the next preceding
calendar year. Discretionary funds shall be funds from any of the items of
disbursed only for public purposes to be appropriation declared inoperative,
supported by appropriate vouchers and disallowed or reduced.
subject to such guidelines as may be SECTION 328. Duration of Appropriation. –
prescribed by law. No amount shall be Appropriations for ordinary administrative
appropriated for the same purpose except purposes not duly obligated shall terminate
as authorized under this section. with the fiscal year and all unexpended
SECTION 326. Review of Appropriation balances thereof shall be automatically
Ordinances of Provinces, Highly-Urbanized reverted on the thirty-first (31st) day of
Cities, Independent Component Cities, and December of each year to the general fund
Municipalities within the Metropolitan of the local government unit.
Manila Area. – The Department of Budget ARTICLE II
and Management shall review ordinances Barangay Budgets
authorizing the annual or supplemental SECTION 329. Barangay Funds. – Unless
appropriations of provinces, highly- otherwise provided in this Title, all the
urbanized cities, independent component income of the barangay from whatever
cities, and municipalities within the source shall accrue to its general fund and
Metropolitan Manila Area in accordance shall, at the option of the barangay
with the immediately succeeding section. concerned, be kept as trust fund in the
SECTION 327. Review of Appropriation custody of the city or municipal treasurer
Ordinances of Component Cities and or be deposited in a bank, preferably
Municipalities. – The sangguniang government-owned, situated in or nearest
panlalawigan shall review the ordinance to its area of jurisdiction. Such funds shall
authorizing annual or supplemental be disbursed in accordance with the
appropriations of component cities and provisions of this Title. Ten percent (10%)
municipalities in the same manner and of the general fund of the barangay shall be
within the same period prescribed for the set aside for the sangguniang kabataan.
review of other ordinances. SECTION 330. Submission of Detailed
If within ninety (90) days from receipt of Statements of Income and Expenditures for
copies of such ordinance, the sangguniang the Barangay Budgets. – On or before the
panlalawigan takes no action thereon, the fifteenth (15th) day of September of each
same shall be deemed to have been year, the barangay treasurer shall submit to
reviewed in accordance with law and shall the punong barangay a statement covering
continue to be in full force and effect. If the estimates of income and expenditures
within the same period, the sangguniang for the ensuing fiscal year, based on a
panlalawigan shall have ascertained that certified statement issued by the city or
the ordinance authorizing annual or municipal treasurer covering the estimates
supplemental appropriations has not of income from local sources for the
complied with the requirements set forth barangay concerned.
in this Title, the sangguniang panlalawigan SECTION 331. Preparation of the Barangay
shall, within the ninety-day period Budget. – (a) Upon receipt of the statement
hereinabove prescribed, declare such of income and expenditures from the
ordinance inoperative in its entirety or in barangay treasurer, the punong barangay
part. Items of appropriation contrary to shall prepare the barangay budget for the
limitations prescribed in this Title or in ensuing fiscal year in the manner and
excess of the amounts prescribed herein within the period prescribed in this Title
shall be disallowed or reduced accordingly. and submit the annual barangay budget to
The sangguniang panlalawigan shall, within the sangguniang barangay for legislative
the same period, advise the sangguniang enactment.
panlungsod or sangguniang bayan (b) The total annual appropriations for
concerned, through the local chief personal services of a barangay for one (1)
executive, of any action on the ordinance fiscal year shall not exceed fifty-five
under review. Upon receipt of such advice, percent (55%) of the total annual income
the city or municipal treasurer concerned actually realized from local sources during
shall not make further disbursements of the next preceding fiscal year.
(c) The barangay budget shall likewise be appropriations shall have met the
subject to the same budgetary objections raised. Upon receipt of such
requirements and limitations hereinabove advice, the barangay treasurer or the city
prescribed. or municipal treasurer who has custody of
SECTION 332. Effectivity of Barangay the funds shall not make further
Budgets. – The ordinance enacting the disbursement from any item of
annual budget shall take effect at the appropriation declared inoperative,
beginning of the ensuing calendar year. An disallowed, or reduced.
ordinance enacting a supplemental budget, SECTION 334. Barangay Financial
however, shall take effect upon its approval Procedures. – (a) The barangay treasurer
or on the date fixed therein. shall collect all taxes, fees, and other
The responsibility for the execution of the charges due and contributions accruing to
annual and supplemental budgets and the the barangay for which he shall issue
accountability therefor shall be vested official receipts, and shall deposit all
primarily in the punong barangay collections with the city or municipal
concerned. treasury or in the depository account
SECTION 333. Review of the Barangay maintained in the name of the barangay
Budget. – (a) Within ten (10) days from its within five (5) days after receipt thereof. He
approval, copies of the barangay ordinance may collect real property taxes and such
authorizing the annual appropriations shall other taxes as may be imposed by a
be furnished the sangguniang panlungsod province, city or municipality that are due
or the sangguniang bayan, as the case may in his barangay only after being deputized
be, through the city or municipal budget by the local treasurer concerned for the
officer. The sanggunian concerned shall purpose.
have the power to review such ordinance in (b) The barangay treasurer may be
order to ensure that the provisions of this authorized by the sangguniang barangay to
Title are complied with. If within sixty (60) make direct purchases amounting to not
days after the receipt of the ordinance, the more than One thousand pesos (P1,000.00)
sanggunian concerned takes no action at any time for the ordinary and essential
thereon, the same shall continue to be in needs of the barangay. The petty cash that
full force and effect. If within the same the barangay treasurer may be authorized
period, the sanggunian concerned shall to hold for the purpose shall not exceed
have ascertained that the ordinance twenty percent (20%) of the funds available
contains appropriations in excess of the and to the credit of the barangay treasury.
estimates of the income duly certified as (c) The financial records of the barangay
collectible, or that the same has not shall be kept in the office of the city or
complied with the budgetary requirements municipal accountant in simplified manner
set forth in this Title, the said ordinance as prescribed by the Commission on Audit
shall be declared inoperative in its entirety (COA). Representatives of the COA shall
or in part. Items of appropriation contrary audit such accounts annually or as often as
to, or in excess of, any of the general may be necessary and make a report of the
limitations or the maximum amount audit to the sangguniang panlungsod or
prescribed in this Title shall be disallowed sangguniang bayan, as the case may be.
or reduced accordingly. The COA shall prescribe and put into effect
(b) Within the period hereinabove fixed, the simplified procedures for barangay finances
sangguniang panlungsod or sangguniang within six (6) months following the
bayan concerned shall return the barangay effectivity of this Code.
ordinance, through the city or municipal CHAPTER IV
budget officer, to the punong barangay with Expenditures, Disbursements, Accounting
the advice of action thereon for proper and Accountability
adjustments, in which event, the barangay SECTION 335. Prohibitions Against
shall operate on the ordinance authorizing Expenditures for Religious or Private
annual appropriations of the preceding Purposes. – No public money or property
fiscal year until such time that the new shall be appropriated or applied for
ordinance authorizing annual religious or private purposes.
SECTION 336. Use of Appropriated Funds permits or requires the possession or
and Savings. – Funds shall be available custody of local government funds shall be
exclusively for the specific purpose for accountable and responsible for the
which they have been appropriated. No safekeeping thereof in conformity with the
ordinance shall be passed authorizing any provisions of this Title. Other local officers
transfer of appropriations from one item to who, though not accountable by the nature
another. However, the local chief executive of their duties, may likewise be similarly
or the presiding officer of the sanggunian held accountable and responsible for local
concerned may, by ordinance, be government funds through their
authorized to augment any item in the participation in the use or application
approved annual budget for their respective thereof.
offices from savings in other items within SECTION 341. Prohibitions Against
the same expense class of their respective Pecuniary Interest. – Without prejudice to
appropriations. criminal prosecution under applicable laws,
SECTION 337. Restriction Upon Limit of any local treasurer, accountant, budget
Disbursements. – Disbursements in officer, or other accountable local officer
accordance with appropriations in the having any pecuniary interest, direct or
approved annual budget may be made from indirect, in any contract, work or other
any local fund in the custody of the business of the local government unit of
treasurer, but the total disbursements from which he is an accountable officer shall be
any local fund shall in no case exceed fifty administratively liable therefor.
percent (50%) of the uncollected estimated SECTION 342. Liability for Acts Done Upon
revenue accruing to such local fund in Direction of Superior Officer, or Upon
addition to the actual collections: Participation of Other Department Heads or
Provided, however, That no cash overdraft Officers of Equivalent Rank. – Unless he
in any local fund shall be incurred at the registers his objection in writing, the local
end of the fiscal year. treasurer, accountant, budget officer, or
In case of emergency arising from a other accountable officer shall not be
typhoon, earthquake, or any other relieved of liability for illegal or improper
calamity, the sanggunian concerned may use or application or deposit of government
authorize the local treasurer to continue funds or property by reason of his having
making disbursements from any local fund acted upon the direction of a superior
in his possession in excess of the officer, elective or appointive, or upon
limitations herein provided, but only for participation of other department heads or
such purposes and amounts included in the officers of equivalent rank. The superior
approved annual budgets. officer directing, or the department head
Any overdraft which may be incurred at the participating in such illegal or improper
end of the year in any local fund by virtue use or application or deposit of government
of the provisions hereof shall be covered funds or property, shall be jointly and
with the first collections of the severally liable with the local treasurer,
immediately succeeding fiscal year accountant, budget officer, or other
accruing to such local fund. accountable officer for the sum or property
SECTION 338. Prohibitions Against so illegally or improperly used, applied or
Advance Payments. – No money shall be deposited.
paid on account of any contract under SECTION 343. Prohibition Against
which no services have been rendered or Expenses for Reception and Entertainment.
goods delivered. – No money shall be appropriated, used, or
SECTION 339. Cash Advances. – No cash paid for entertainment or reception except
advance shall be granted to any local to the extent of the representation
official or employee, elective or appointive, allowances authorized by law or for the
unless made in accordance with the rules reception of visiting dignitaries of foreign
and regulations as the COA may prescribe. governments or foreign missions, or when
SECTION 340. Persons Accountable for expressly authorized by the President in
Local Government Funds. – Any officer of specific cases.
the local government unit whose duty
SECTION 344. Certification on, and sixty (60) days after the thirty-first (31st)
Approval of, Vouchers. – No money shall be of December.
disbursed unless the local budget officer SECTION 347. Rendition of Accounts. –
certifies to the existence of appropriation Local treasurers, accountants and other
that has been legally made for the purpose, local accountable officers shall render their
the local accountant has obligated said accounts within such time, in such form,
appropriation, and the local treasurer style, and content and under such
certifies to the availability of funds for the regulations as the COA may prescribe.
purpose. Vouchers and payrolls shall be Provincial, city, and municipal auditors
certified to and approved by the head of shall certify the balances arising in the
the department or office who has accounts settled by them to the Chairman
administrative control of the fund of the COA and to the local treasurer,
concerned, as to validity, propriety, and accountant, and other accountable officers.
legality of the claim involved. Except in Copies of the certification shall be prepared
cases of disbursements involving regularly and furnished other local officers who may
recurring administrative expenses such as be held jointly and severally liable for any
payrolls for regular or permanent loss or illegal, improper or unauthorized
employees, expenses for light, water, use or misappropriation of local funds or
telephone and telegraph services, property.
remittances to government creditor SECTION 348. Auditorial Visitation. – The
agencies such as GSIS, SSS, LBP, DBP, books, accounts, papers, and cash of local
National Printing Office, Procurement treasurer, accountant, budget officer, or
Service of the DBM and others, approval of other accountable officers shall at all times
the disbursement voucher by the local be open for inspection of the COA or its
chief executive himself shall be required duly authorized representative.
whenever local funds are disbursed. In case an examination of the accounts of a
In cases of special or trust funds, local treasurer discloses a shortage in cash
disbursements shall be approved by the which should be on hand, it shall be the
administrator of the fund. duty of the examining officer to seize the
In case of temporary absence or incapacity office and its contents and notify the COA,
of the department head or chief of office, the local chief executive concerned, and
the officer next-in-rank shall automatically the local accountant. Thereupon, the
perform his function and he shall be fully examining officer shall immediately turn
responsible therefor. over to the accountable officer next-in-rank
SECTION 345. Officials Authorized to Draw in the local treasury service, unless the
Checks in Settlement of Obligations. – said officer is likewise under investigation,
Checks in settlement of obligations shall be the office of the treasurer and its contents,
drawn by the local treasurer and and close and render his accounts on the
countersigned by the local administrator. date of turnover. In case the accountable
In case of temporary absence or incapacity officer next in rank is under investigation,
of the foregoing officials, these duties shall the auditor shall take full possession of the
devolve upon their immediate assistants. office and its contents, close and render
SECTION 346. Disbursements of Local his accounts on the date of taking
Funds and Statement of Accounts. – possession, and temporarily continue the
Disbursements shall be made in accordance public business of such office until such
with the ordinance authorizing the annual time that the local treasurer is restored or
or supplemental appropriations without the a successor has been duly designated. The
prior approval of the sanggunian local treasurer or accountable officer found
concerned. Within thirty (30) days after the with such shortage shall be automatically
close of each month, the local accountant suspended from office.
shall furnish the sanggunian with such SECTION 349. Accounting for Revenues. –
financial statements as may be prescribed Estimated revenues which remain
by the COA. In the case of the year-end unrealized at the close of the fiscal year
statement of accounts, the period shall be shall not be booked or credited to the
unappropriated surplus or any other have become unserviceable or no longer
account. needed shall be sold, whenever applicable,
SECTION 350. Accounting for Obligations. – at public auction, subject to applicable
All lawful expenditures and obligations rules and regulations.
incurred during a fiscal year shall be taken SECTION 357. Definition of Terms. – When
up in the accounts of that year. used in this Title, the term:
SECTION 351. General Liability for (a) “Lowest Complying and Responsible
Unlawful Expenditures. – Expenditures of Bid” refers to the proposal of one who
funds or use of property in violation of this offers the lowest price, meets all the
Title and other laws shall be a personal technical specifications and requirements
liability of the official or employee of the supplies desired and, as a dealer in
responsible therefor. the line of supplies involved, maintains a
SECTION 352. Posting of the Summary of regular establishment, and has complied
Income and Expenditures. – Local consistently with previous commitments;
treasurers, accountants, budget officers, (b) “Suitable Substitute” refers to that kind
and other accountable officers shall, within of article which would serve substantially
thirty (30) days from the end of each fiscal the same purpose or produce substantially
year, post in at least three (3) publicly the same results as the brand, type, or
accessible and conspicuous places in the make of article originally desired or
local government unit a summary of all requisitioned;
revenues collected and funds received (c) “Supplies” includes everything, except
including the appropriations and real property, which may be needed in the
disbursements of such funds during the transaction of public business or in the
preceding fiscal year. pursuit of any undertaking, project, or
SECTION 353. The Official Fiscal Year. – activity, whether in the nature of
The official fiscal year of local government equipment, furniture, stationary materials
units shall be the period beginning with the for construction or personal property of
first (1st) day of January and ending with any sort, including non-personal or
the thirty-first (31st) day of December of contractual services such as the repair and
the same year. maintenance of equipment and furniture,
SECTION 354. Administrative Issuances; as well as trucking, hauling, janitorial,
Budget Operations Manual. – The Secretary security, and related services; and
of Budget and Management jointly with the (d) “Terms and Conditions” refer to other
Chairman of the COA shall, within one (1) requirements not affecting the technical
year from the effectivity of this Code, specifications and requirements of the
promulgate a Budget Operations Manual for required supplies desired such as bonding,
local government units to improve and terms of delivery and payment, and related
systematize methods, techniques, and preferences.
procedures employed in budget SECTION 358. Requirement of Requisition.
preparation, authorization, execution, and – Any order for supplies shall be filled by
accountability. the provincial or city general services
TITLE VI officer or the municipal or barangay
Property and Supply Management in the treasurer concerned, as the case may be,
Local Government Units for any office or department of a local
SECTION 355. Scope. – This Title shall government unit only upon written
govern the procurement, care, utilization, requisition as hereinafter provided.
custody, and disposal of supplies, as SECTION 359. Officers Having Authority to
defined herein, by local government units Draw Requisitions. – Requisitions shall be
and the other aspects of supply prepared by the head of office or
management at the local levels. department needing the supplies, who shall
SECTION 356. General Rule in Procurement certify as to their necessity for official use
or Disposal.  – Except as otherwise and specify the project or activity where
provided herein, acquisition of supplies by the supplies are to be used.
local government units shall be through SECTION 360. Certification by the Local
competitive public bidding. Supplies which Budget Officer, Accountant, and Treasurer.
– Every requisition must be accompanied The notice of the bidding may likewise be
by a certificate signed by the local budget published in a newspaper of general
officer, the local accountant, and the local circulation in the territorial jurisdiction of
treasurer showing that an appropriation the local government unit concerned when
therefor exists, the estimated amount of the provincial or city general services
such expenditure has been obligated, and officer or the municipal or barangay
the funds are available for the purpose, treasurer, as the case may be, deems it
respectively. necessary in order to obtain the lowest
SECTION 361. Approval of Requisitions. – responsible and complying bid.
Approval of the requisition by the head of The opening of bids shall only be made in
office or department concerned who has the presence of the provincial or city
administrative control of the appropriation auditor or his duly authorized
against which the proposed expenditure is representative who shall initial and secure
chargeable is deemed sufficient, except in copies of the bids and certify the abstract
case of requisition for supplies to be of the bidding.
carried in stock which shall be approved by SECTION 364. The Committee on Awards. 
the local chief executive concerned: – There shall be in every province, city or
Provided, That such supplies are listed or municipality a Committee on Awards to
included in the annual procurement plan decide the winning bids and questions of
and the maximum quantity thereof does awards on procurement and disposal of
not exceed the estimated consumption property.
corresponding to a programmed three- The Committee on Awards shall be
month period: Provided, further, That composed of the local chief executive as
nothing herein contained shall be held as chairman, the local treasurer, the local
authorizing the purchase of furniture and accountant, the local budget officer, the
equipment for stock purposes. local general services officer, and the head
SECTION 362. Call for Bids. – When of office or department for whose use the
procurement is to be made by local supplies are being procured, as members.
government units, the provincial or city In case a head of office or department
general services officer or the municipal or would sit in a dual capacity, a member of
barangay treasurer shall call bids for open the sanggunian elected from among its
public competition. The call for bids shall members shall sit as a member. The
show the complete specifications and Committee on Awards at the barangay level
technical descriptions of the required shall be the sangguniang barangay. No
supplies and shall embody all terms and national official shall sit as a member of
conditions of participation and award, the Committee on Awards.
terms of delivery and payment, and all The results of the bidding shall be made
other covenants affecting the transaction. public by conspicuously posting the same
In all calls for bids, the right to waive any in the provincial capitol or city, municipal,
defect in the tender as well as the right to or barangay hall.
accept the bid most advantageous to the SECTION 365. Rule on Awards. – Awards in
government shall be reserved. In no case, the procurement of supplies shall be given
however, shall failure to meet the to the lowest complying and responsible
specifications or technical requirements of bid which meets all the terms and
the supplies desired be waived. conditions of the contract or undertaking.
SECTION 363. Publication of Call for Bids. – SECTION 366. Procurement Without Public
The call for bids shall be given the widest Bidding. – Procurement of supplies may be
publicity possible, sending, by mail or made without the benefit of public bidding
otherwise, any known prospective under any of the following modes:
participant in the locality, of copies of the (a) Personal canvass of responsible
call and by posting copies of the same in at merchants;
least three (3) publicly accessible and (b) Emergency purchase;
conspicuous places in the provincial (c) Negotiated purchase;
capitol or city, municipal, or barangay hall, (d) Direct purchase from manufacturers or
as the case may be. exclusive distributors; and
(e) Purchase from other government cover the same which shall contain the
entities. following:
SECTION 367. Procurement through (a) A complete description of the supplies
Personal Canvass.   – Upon approval by the acquired or the work done or to be
Committee on Awards, procurement of performed;
supplies may be effected after personal (b) By whom furnished or executed;
canvass of at least three (3) responsible (c) Date of placing the order and the date
suppliers in the locality by a committee of and time of delivery or execution;
three (3) composed of the local general (d) The unit price and the total contract
services officer or the municipal or price;
barangay treasurer, as the case may be, the (e) A brief and concise explanation of the
local accountant, and the head of office or circumstances why procurement was of
department for whose use the supplies are such urgency that the same could not be
being procured. The award shall be decided done through the regular course without
by the Committee on Awards. involving danger to, or loss of, life or
Purchases under this section shall not property;
exceed the amounts specified hereunder for (f) A certification of the provincial or city
all items in any one (1) month for each general services or the municipal or
local government unit: barangay treasurer, as the case may be, to
Provinces and Cities and Municipalities the effect that the price paid or contracted
within the Metropolitan Manila Area: for was the lowest at the time of
First and Second One hundred fifty procurement; and
Class – thousand pesos (g) A certification of the local budget officer
(P150,000.00) as to the existence of appropriations for
Third and Fourth One hundred thousand the purpose, the local accountant as to the
Class – pesos (P100,000.00) obligation of the amount involved, and the
Fifth and Sixth Fifty thousand pesos local treasurer as to the availability of
Class – (P50,000.00) funds.
The goods or services procured under this
Municipalities:
section must be utilized or availed of
First Class – Sixty thousand pesos within fifteen (15) days from the date of
(P60,000.00) delivery or availability.
Second and Third Forty thousand pesos Without prejudice to criminal prosecution
Class – (P40,000.00) under applicable laws, the local chief
Fourth Class and Twenty thousand pesos executive, the head of department, or the
Below – (P20,000.00) chief of office making the procurement
SECTION 368. Emergency Purchase.  – In shall be administratively liable for any
cases of emergency where the need for the violation of this section and shall be a
supplies is exceptionally urgent or ground for suspension or dismissal from
absolutely indispensable and only to service.
prevent imminent danger to, or loss of, life SECTION 369. Negotiated Purchase.  – (a) In
or property, local government units may, cases where public biddings have failed for
through the local chief executive two (2) consecutive times and no suppliers
concerned, make emergency purchases or have qualified to participate or win in the
place repair orders, regardless of amount, biddings, local government units may,
without public bidding. Delivery of through the local chief executive
purchase orders or utilization of repair concerned, undertake the procurement of
orders pursuant to this section shall be supplies by negotiated purchase, regardless
made within ten (10) days after placement of amount, without public bidding:
of the same. Immediately after the Provided, however, That the contract
emergency purchase or repair order is covering the negotiated purchase shall be
made, the chief of office or department approved by the sanggunian concerned.
making the emergency purchase or repair Delivery of purchase orders or utilization of
order shall draw a regular requisition to repair orders pursuant to this section shall
be made within seven (7) days after
placement of the same. Immediately after (b) That no suitable substitutes of
the negotiated purchase or repair order is substantially the same quality are available
made, the local chief executive concerned at lower prices.
shall draw a regular requisition to cover the SECTION 372. Procurement from
same which shall contain the following: Government Entities.  – Procurement may
(1) A complete description of the supplies be made directly from the government
acquired or the work done or to be entities producing the required supplies,
performed; including units or agencies of foreign
(2) By whom furnished or executed; governments with which the Philippines
(3) Date of placing the order and the date maintains diplomatic relations. In the
and time of delivery or execution; latter case, prior authority from the Office
(4) The unit price and the total contract of the President shall be required.
price; SECTION 373. Annual Procurement
(5) A certification of the provincial or city Program. –  (a) On or before the fifteenth
general services of the municipal or (15th) day of July each year, the local chief
barangay treasurer, as the case may be, to executive shall prepare an annual
the effect that the price paid or contracted procurement program for the ensuing fiscal
for was the lowest at the time of year which shall contain an itemized list of
procurement; the estimated quantity of supplies needed
(6) A certification to the effect that the for such year, a complete description
price paid or contracted for was the lowest thereof as to kind, quality, estimated cost,
at the time of procurement; and and balance on hand: Provided, however,
(7) A certification of the local budget officer That the total estimated cost of the
as to the existence of appropriations for approved annual procurement program
the purpose, the local accountant as to the shall not exceed the total appropriations
obligation of the amount involved, and the authorized for the acquisition of supplies.
local treasurer as to the availability of The local government units may augment
funds. the supplies and equipment provided by
(b) In case of repeat orders for regular the Supreme Court to the lower courts
supplies, procurement may be made by located in their respective jurisdictions.
negotiated purchase: Provided, That the (b) Except in emergency cases or where
repeat order is made within three (3) urgent indispensable needs could not have
months from the last procurement of the been reasonably anticipated, no purchase
same item: Provided, further, That the of supplies shall be made unless included
same terms and conditions of sale are in, or covered by, the approved
obtained for the said repeat order. procurement program.
SECTION 370. Procurement from Duly (c) The conversion of excess cash into
Licensed Manufacturer.  – Procurement supplies stock is hereby prohibited except
may be made directly from duly licensed to the extent of the kind and quantity
manufacturers in cases of supplies of specified in the approved annual
Philippine manufacture or origin and in procurement plan.
case there are two (2) or more  A violation of this section shall be a
manufacturers of the required supplies, ground for suspension or dismissal of any
canvass of the known manufacturers shall official or employee responsible therefor.
be conducted to obtain the lowest price for SECTION 374. Establishment of an Archival
the quality of the said supplies. System. – Every local government unit
SECTION 371. Procurement from Exclusive shall provide for the establishment of an
Philippine Agents or Distributors. – archival system to ensure the safety and
Procurement may, in the case of supplies protection of all government property,
of foreign origin, preferably be made public documents or records such as
directly from the exclusive or reputable records of births, marriages, property
Philippine distributors or agents, subject to inventory, land assessments, land
the following conditions: ownership, tax payments, tax accounts,
(a) That the Philippine distributor has no and business permits, and such other
subdealers selling at lower prices; and records or documents of public interest in
the various departments and offices of the by negligence in the keeping or use of such
provincial, city, or municipal government property unless it is proved that he has
concerned. exercised due diligence and care in the
SECTION 375. Primary and Secondary utilization and safekeeping thereof.
Accountability for Government Property. – (b) Unless he registers his objection in
(a) Each head of department or office of a writing, an accountable person shall not be
province, city, municipality or barangay relieved from liability by reason of his
shall be primarily accountable for all having acted under the direction of a
government property assigned or issued to superior officer in using property with
his department or office. The person or which he is chargeable; but the officer
persons entrusted with the possession or directing any illegal, unauthorized or
custody of government property under the improper use of property shall first be
accountability of any head of department required to answer therefor.
or office shall be immediately accountable (c) In cases of loss, damage, or
to such officer. deterioration of government property
(b) The head of a department or office arising from, or attributable to, negligence
primarily accountable for government in security, the head of the security agency
property may require any person in shall be held liable therefor.
possession of the property or having SECTION 378. Credit for Loss Occurring in
custody and control thereof under him to Transit or Due to Casualty. – When a loss of
keep such records and make reports as may government property occurs while the
be necessary for his own information and same is in transit or is caused by fire,
protection. theft, force majeure, or other casualty, the
(c) Buildings and other physical structures officer accountable therefor or having
shall be under the accountability and custody thereof shall immediately notify
responsibility of the provincial or city the provincial or city auditor concerned
general services officer or the municipal within thirty (30) days from the date the
mayor or punong barangay, as the case may loss occurred or for such longer period as
be. the provincial, city or municipal auditor, as
(d) Every officer primarily accountable for the case may be, may in the particular case
government property shall keep a complete allow, and he shall present his application
record of all properties under his charge for relief, with the available evidence in
and render his accounts therefor support thereof. An officer who fails to
semiannually to the provincial or city comply with this requirement shall not be
general services officer or the municipal relieved of liability or allowed credit for
mayor or punong barangay, as the case may any such loss in the settlement of his
be. accounts.
SECTION 376. Responsibility for Proper A provincial, city or municipal auditor shall
Use and Care of Government Property. – not allow credit for these losses unless so
The person in actual physical possession of expressly authorized by the Chairman of
government property or entrusted with its the Commission on Audit, to be exercised
custody and control shall be responsible for only if the loss is not in excess of Fifty
its proper use and care and shall exercise thousand pesos (P50,000.00). In any case
due diligence in the utilization and when the allowance of credit is not within
safekeeping thereof. the competence of the provincial, city or
SECTION 377. Measure of Liability of municipal auditor, the application and
Persons Accountable for Government evidence, with the recommendation of the
Property. – (a) The person immediately auditor concerned, shall be forwarded to
accountable for government property shall the Chairman of the Commission on Audit
be liable for its money value in case of the for his appropriate action.
illegal, improper or unauthorized use or SECTION 379. Property Disposal. – When
misapplication thereof, by himself or any property of any local government unit has
other person for whose acts he may be become unserviceable for any cause or is
responsible, and he shall be liable for all no longer needed, it shall, upon application
loss, damage, or deterioration occasioned of the officer accountable therefor, be
inspected and appraised by the provincial, SECTION 382. Tax Exemption Privileges of
city or municipal auditor, as the case may Local Government Units. – Local
be, or his duly authorized representative or government units shall be exempt from the
that of the Commission on Audit and, if payment of duties and taxes for the
found valueless or unusable, shall be importation of heavy equipment or
destroyed in the presence of the inspecting machineries which shall be used for the
officer. construction, improvement, repair, and
If found valuable, the same shall be sold at maintenance of roads, bridges and other
public auction to the highest bidder under infrastructure projects, as well as garbage
the supervision of the Committee on trucks, fire trucks, and other similar
Awards and in the presence of the equipment: Provided, however, That such
provincial, city or municipal auditor or his equipment or machineries shall not be
duly authorized representative. Notice of disposed of, either by public auction or
the public auction shall be posted in at negotiated sale as hereinabove provided,
least three (3) publicly accessible and within five (5) years from the importation
conspicuous places, and if the acquisition thereof. In case the machinery or
cost exceeds One hundred thousand pesos equipment is sold within the five-year
(P100,000.00) in the case of provinces and period, the purchasers or recipients shall
cities, and Fifty thousand pesos be considered the importers thereof, and
(P50,000.00) in the case of municipalities, shall be liable for duties and taxes
notice of auction shall be published at least computed on the book value of such
two (2) times within a reasonable period in importation.
a newspaper of general circulation in the SECTION 383. Implementing Rules and
locality. Regulations. – The Chairman of the
SECTION 380. Negotiated Sale of Property. Commission on Audit shall promulgate the
– Property no longer needed may also be rules and regulations necessary to
disposed of at a private sale at such price effectively implement the provisions of this
as may be determined by the Committee on Title, including requirements as to testing,
Awards, subject to the approval of the inspection, and standardization of supply
Commission on Audit or its duly authorized and property.
representative when the acquisition or BOOK III
transfer cost of the property exceeds Fifty Local Government Units
thousand pesos (P50,000.00) in the case of TITLE I
provinces and cities, and Twenty-five The Barangay
thousand pesos (P25,000.00) in the case of CHAPTER I
municipalities and barangays. Role and Creation of the Barangay
In case of real property, the disposal shall SECTION 384. Role of the Barangay. – As
be subject to the approval of the the basic political unit, the barangay serves
Commission on Audit regardless of the as the primary planning and implementing
value or cost involved. unit of government policies, plans,
SECTION 381. Transfer Without Cost. – programs, projects, and activities in the
Property which has become unserviceable community, and as a forum wherein the
or is no longer needed may be transferred collective views of the people may be
without cost to another office, agency, expressed, crystallized and considered, and
subdivision or instrumentality of the where disputes may be amicably settled.
national government or another local SECTION 385. Manner of Creation. – A
government unit at an appraised valuation barangay may be created, divided, merged,
determined by the local Committee on abolished, or its boundary substantially
Awards. Such transfer shall be subject to altered, by law or by an ordinance of the
the approval of the sanggunian concerned sangguniang panlalawigan or sangguniang
making the transfer and by the head of the panlungsod, subject to approval by a
office, agency, subdivision, instrumentality majority of the votes cast in a plebiscite to
or local government unit receiving the be conducted by the COMELEC in the local
property. government unit or units directly affected
within such period of time as may be
determined by the law or ordinance (b) There shall also be in every barangay a
creating said barangay. In the case of the lupong tagapamayapa. The sangguniang
creation of barangays by the sangguniang barangay may form community brigades
panlalawigan, the recommendation of the and create such other positions or offices
sangguniang bayan concerned shall be as may be deemed necessary to carry out
necessary. the purposes of the barangay government
SECTION 386. Requisites for Creation. – (a) in accordance with the needs of public
A barangay may be created out of a service, subject to the budgetary
contiguous territory which has a limitations on personal services prescribed
population of at least two thousand (2,000) under Title Five, Book II of this Code.
inhabitants as certified by the National SECTION 388. Persons in Authority.  – For
Statistics Office except in cities and purposes of the Revised Penal Code, the
municipalities within Metro Manila and punong barangay, sangguniang barangay
other metropolitan political subdivisions or members, and members of the lupong
in highly urbanized cities where such tagapamayapa in each barangay shall be
territory shall have a certified population deemed as persons in authority in their
of at least five thousand (5,000) jurisdictions, while other barangay officials
inhabitants: Provided, That the creation and members who may be designated by
thereof shall not reduce the population of law or ordinance and charged with the
the original barangay or barangays to less maintenance of public order, protection
than the minimum requirement prescribed and security of life and property, or the
herein. maintenance of a desirable and balanced
To enhance the delivery of basic services in environment, and any barangay member
the indigenous cultural communities, who comes to the aid of persons in
barangays may be created in such authority, shall be deemed agents of
communities by an act of Congress, persons in authority.
notwithstanding the above requirement. CHAPTER III
(b) The territorial jurisdiction of the new The Punong Barangay
barangay shall be properly identified by SECTION 389. Chief Executive: Powers,
metes and bounds or by more or less Duties, and Functions.  – (a) The punong
permanent natural boundaries. The barangay, as the chief executive of the
territory need not be contiguous if it barangay government, shall exercise such
comprises two (2) or more islands. powers and perform such duties and
(c) The governor or city mayor may prepare functions, as provided by this Code and
a consolidation plan for barangays, based other laws.
on the criteria prescribed in this section, (b) For efficient, effective and economical
within his territorial jurisdiction. The plan governance, the purpose of which is the
shall be submitted to the sangguniang general welfare of the barangay and its
panlalawigan or sangguniang panlungsod inhabitants pursuant to Section 16 of this
concerned for appropriate action. Code, the punong barangay shall:
In the case of municipalities within the (1) Enforce all laws and ordinances which
Metropolitan Manila Area and other are applicable within the barangay;
metropolitan political subdivisions, the (2) Negotiate, enter into, and sign contracts
barangay consolidation plan shall be for and in behalf of the barangay, upon
prepared and approved by the sangguniang authorization of the sangguniang barangay;
bayan concerned. (3) Maintain public order in the barangay
CHAPTER II and, in pursuance thereof, assist the city or
Barangay Officials and Offices municipal mayor and the sanggunian
SECTION 387. Chief Officials and Offices. – members in the performance of their duties
(a) There shall be in each barangay a and functions;
punong barangay, seven (7) sangguniang (4) Call and preside over the sessions of the
barangay members, the sangguniang sangguniang barangay and the barangay
kabataan chairman, a barangay secretary, assembly, and vote only to break a tie;
and a barangay treasurer. (5) Upon approval by a majority of all the
members of the sangguniang barangay,
appoint or replace the barangay treasurer, (1) Enact ordinances as may be necessary
the barangay secretary, and other to discharge the responsibilities conferred
appointive barangay officials; upon it by law or ordinance and to promote
(6) Organize and lead an emergency group the general welfare of the inhabitants
whenever the same may be necessary for therein;
the maintenance of peace and order or on (2) Enact tax and revenue ordinances,
occasions of emergency or calamity within subject to the limitations imposed in this
the barangay; Code;
(7) In coordination with the barangay (3) Enact annual and supplemental budgets
development council, prepare the annual in accordance with the provisions of this
executive and supplemental budgets of the Code;
barangay; (4) Provide for the construction and
(8) Approve vouchers relating to the maintenance of barangay facilities and
disbursement of barangay funds; other public works projects chargeable to
(9) Enforce laws and regulations relating to the general fund of the barangay or such
pollution control and protection of the other funds actually available for the
environment; purpose;
(10) Administer the operation of the (5) Submit to the sangguniang panlungsod
katarungang pambarangay in accordance or sangguniang bayan such suggestions or
with the provisions of this Code; recommendations as it may see fit for the
(11) Exercise general supervision over the improvement of the barangay or for the
activities of the sangguniang kabataan; welfare of the inhabitants thereof;
(12) Ensure the delivery of basic services as (6) Assist in the establishment,
mandated under Section 17 of this Code; organization, and promotion of cooperative
(13) Conduct an annual palarong barangay enterprises that will improve the economic
which shall feature traditional sports and condition and well-being of the residents;
disciplines included in national and (7) Regulate the use of multi-purpose halls,
international games, in coordination with multi-purpose pavements, grain or copra
the Department of Education, Culture and dryers, patios and other post-harvest
Sports; facilities, barangay waterworks, barangay
(14) Promote the general welfare of the markets, parking areas or other similar
barangay; and facilities constructed with government
(15) Exercise such other powers and funds within the jurisdiction of the
perform such other duties and functions as barangay and charge reasonable fees for the
may be prescribed by law or ordinance. use thereof;
(b) In the performance of his peace and (8) Solicit or accept monies, materials and
order functions, the punong barangay shall voluntary labor for specific public works
be entitled to possess and carry the and cooperative enterprises of the barangay
necessary firearm within his territorial from residents, land owners, producers and
jurisdiction, subject to appropriate rules merchants in the barangay; monies from
and regulations. grants-in-aid, subsidies, contributions, and
CHAPTER IV revenues made available to the barangays
The Sangguniang Barangay from national, provincial, city or municipal
SECTION 390. Composition. – The funds; and monies from other private
sangguniang barangay, the legislative body agencies and individuals: Provided,
of the barangay, shall be composed of the however, That monies or properties
punong barangay as presiding officer, and donated by private agencies and individuals
the seven (7) regular sangguniang barangay for specific purposes shall accrue to the
members elected at large and sangguniang barangay as trust fund;
kabataan chairman, as members. (9) Solicit or accept, in any or all the
SECTION 391. Powers, Duties, and foregoing public works and cooperative
Functions.  – (a) The sangguniang barangay, enterprises, such cooperation as is made
as the legislative body of the barangay, available by national, provincial, city, or
shall: municipal agencies established by law to
render financial, technical, and advisory
assistance to barangays and to barangay (14) Prescribe fines in amounts not
residents: Provided, however, That in exceeding One thousand pesos (P1,000.00)
soliciting or accepting such cooperation, for violation of barangay ordinances;
the sangguniang barangay need not pledge (15) Provide for the administrative needs of
any sum of money for expenditure in the lupong tagapamayapa and the pangkat
excess of amounts currently in the ng tagapagkasundo;
barangay treasury or encumbered for other (16) Provide for the organization of
purposes; community brigades,  barangay tanod, or
(10) Provide compensation, reasonable community service units as may be
allowances or per diems as well as travel necessary;
expenses for sangguniang barangay (17) Organize regular lectures, programs, or
members and other barangay officials, fora on community problems such as
subject to the budgetary limitations sanitation, nutrition, literacy, and drug
prescribed under Title Five, Book II of this abuse, and convene assemblies to
Code: Provided, however, That no increase encourage citizen participation in
in the compensation or honoraria of the government;
sangguniang barangay members shall take (18) Adopt measures to prevent and control
effect until after the expiration of the full the proliferation of squatters and
term of all members of the sangguniang mendicants in the barangay;
barangay approving such increase; (19) Provide for the proper development
(11) Hold fund-raising activities for and welfare of children in the barangay by
barangay projects without the need of promoting and supporting activities for the
securing permits from any national or local protection and total development of
office or agency. The proceeds from such children, particularly those below seven (7)
activities shall be tax-exempt and shall years of age;
accrue to the general fund of the barangay: (20) Adopt measures towards the
Provided, That in the appropriation prevention and eradication of drug abuse,
thereof, the specific purpose for which child abuse, and juvenile delinquency;
such fund-raising activity has been held (21) Initiate the establishment of a
shall be first satisfied: Provided, further, barangay high school, whenever feasible, in
That no fund-raising activities shall be held accordance with law;
within a period of sixty (60) days (22) Provide for the establishment of a non-
immediately preceding and after a national formal education center in the barangay
or local election, recall, referendum, or whenever feasible, in coordination with the
plebiscite: Provided, finally, That said fund- Department of Education, Culture and
raising activities shall comply with Sports;
national policy standards and regulations (23) Provide for the delivery of basic
on morals, health, and safety of the services; and
persons participating therein. The (24) Exercise such other powers and
sangguniang barangay, through the punong perform such other duties and functions as
barangay, shall render a public accounting may be prescribed by law or ordinance.
of the funds raised at the completion of the SECTION 392. Other Duties of Sangguniang
project for which the fund-raising activity Barangay Members. – In addition to their
was undertaken; duties as members of the sangguniang
(12) Authorize the punong barangay to barangay, sangguniang barangay members
enter into contracts in behalf of the may:
barangay, subject to the provisions of this (a) Assist the punong barangay in the
Code; discharge of his duties and functions;
(13) Authorize the barangay treasurer to (b) Act as peace officers in the maintenance
make direct purchases in an amount not of public order and safety; and
exceeding One thousand pesos (P1,000.00) (c) Perform such other duties and functions
at any one time for the ordinary and as the punong barangay may delegate.
essential administrative needs of the SECTION 393. Benefits of Barangay
barangay; Officials. – (a) Barangay officials, including
barangay tanods and members of the
lupong tagapamayapa, shall receive (4) Be exempted during their incumbency
honoraria, allowances, and such other from paying tuition and matriculation fees
emoluments as may be authorized by law or for their legitimate dependent children
barangay, municipal or city ordinance in attending state colleges or universities. He
accordance with the provisions of this may likewise avail of such educational
Code, but in no case shall it be less than benefits in a state college or university
One thousand pesos (P1,000.00) per month located within the province or city to
for the punong barangay and Six hundred which the barangay belongs; and
pesos (P600.00) per month for the (5) Be entitled to appropriate civil service
sangguniang barangay members, barangay eligibility on the basis of the number of
treasurer, and barangay secretary: years of service to the barangay, pursuant
Provided, however, That the annual to the rules and regulations issued by the
appropriations for personal services shall Civil Service Commission.
be subject to the budgetary limitations (c) Elective barangay officials shall have
prescribed under Title Five, Book II of this preference in appointments to any
Code; government position or in any government-
(b) The punong barangay, the sangguniang owned or -controlled corporations,
barangay members, the barangay treasurer, including their subsidiaries, after their
and the barangay secretary shall also: tenure of office, subject to the requisite
(1) Be entitled to Christmas bonus of at qualifications and the provisions of the
least One thousand pesos (P1,000.00) each, immediately preceding paragraph.
the funds for which shall be taken from the (d) All duly appointed members of the
general fund of the barangay or from such barangay tanod brigades, or their
other funds appropriated by the National equivalent, which shall number not more
Government for the purpose; than twenty (20) in each barangay, shall be
(2) Be entitled, during their incumbency, to granted insurance or other benefits during
insurance coverage which shall include, but their incumbency, chargeable to the
shall not be limited to temporary and barangay or the city or municipal
permanent disability, double indemnity, government to which the barangay belongs.
accident insurance, death and burial CHAPTER V
benefits, in accordance with Republic Act Appointive Barangay Officials
Numbered Sixty-nine hundred forty-two SECTION 394. Barangay Secretary:
(R.A. No. 6942), entitled “An Act Increasing Appointment, Qualifications, Powers and
the Insurance Benefits of Local Duties. – (a) The barangay secretary shall be
Government Officials and Providing Funds appointed by the punong barangay with the
Therefor”; concurrence of the majority of all the
(3) Be entitled to free medical care sangguniang barangay members. The
including subsistence, medicines, and appointment of the barangay secretary
medical attendance in any government shall not be subject to attestation by the
hospital or institution: Provided, That such Civil Service Commission.
hospital care shall include surgery or (b) The barangay secretary shall be of legal
surgical expenses, medicines, X-rays, age, a qualified voter and an actual resident
laboratory fees, and other hospital of the barangay concerned.
expenses; (c) No person shall be appointed barangay
In case of extreme urgency where there is secretary if he is a sangguniang barangay
no available government hospital or member, a government employee, or a
institution, the barangay official concerned relative of the punong barangay within the
may submit himself for immediate medical fourth civil degree of consanguinity of
attendance to the nearest private clinic, affinity.
hospital or institution and the expenses (d) The barangay secretary shall:
not exceeding Five thousand pesos (1) Keep custody of all records of the
(P5,000.00) that may be incurred therein sangguniang barangay and the barangay
shall be chargeable against the funds of the assembly meetings;
barangay concerned;
(2) Prepare and keep the minutes of all (1) Keep custody of barangay funds and
meetings of the sangguniang barangay and properties;
the barangay assembly; (2) Collect and issue official receipts for
(3) Prepare a list of members of the taxes, fees, contributions, monies,
barangay assembly, and have the same materials, and all other resources accruing
posted in conspicuous places within the to the barangay treasury and deposit the
barangay; same in the account of the barangay as
(4) Assist in the preparation of all provided under Title Five, Book II of this
necessary forms for the conduct of Code;
barangay elections, initiatives, referenda or (3) Disburse funds in accordance with the
plebiscites, in coordination with the financial procedures provided in this Code;
COMELEC; (4) Submit to the punong barangay a
(5) Assist the municipal civil registrar in statement covering the actual and
the registration of births, deaths, and estimates of income and expenditures for
marriages; the preceding and ensuing calendar years,
(6) Keep an updated record of all respectively, subject to the provisions of
inhabitants of the barangay containing the Title Five, Book II of this Code.
following items of information: name, (5) Render a written accounting report of
address, place and date of birth, sex, civil all barangay funds and property under his
status, citizenship, occupation, and such custody at the end of each calendar year,
other items of information as may be and ensure that such report shall be made
prescribed by law or ordinance; available to the members of the barangay
(7) Submit a report on the actual number of assembly and other government agencies
barangay residents as often as may be concerned;
required by the sangguniang barangay; and (6) Certify as to the availability of funds
(8) Exercise such other powers and perform whenever necessary;
such other duties and functions as may be (7) Plan and attend to the rural postal
prescribed by law or ordinance. circuit within his jurisdiction; and
SECTION 395. Barangay Treasurer: (8) Exercise such other powers and perform
Appointment, Qualifications, Powers and such other duties and functions as may be
Duties. – (a) The barangay treasurer shall be prescribed by law or ordinance.
appointed by the punong barangay with the SECTION 396. Other Appointive Officials. –
concurrence of the majority of all the The qualifications, duties, and functions of
sangguniang barangay members. The all other barangay officials appointed by
appointment of the barangay treasurer the punong barangay shall be governed by
shall not be subject to attestation by the the provisions of this Code and other laws
Civil Service Commission. or by barangay ordinances.
(b) The barangay treasurer shall be of legal CHAPTER VI
age, a qualified voter, and an actual Barangay Assembly
resident of the barangay concerned. SECTION 397. Composition; Meetings. – (a)
(c) No person shall be appointed barangay There shall be a barangay assembly
treasurer if he is a sangguniang barangay composed of all persons who are actual
member, a government employee, or a residents of the barangay for at least six (6)
relative of the punong barangay within the months, fifteen (15) years of age or over,
fourth civil degree of consanguinity or citizens of the Philippines, and duly
affinity. registered in the list of barangay assembly
(d) The barangay treasurer shall be bonded members.
in accordance with existing laws in an (b) The barangay assembly shall meet at
amount to be determined by the least twice a year to hear and discuss the
sangguniang barangay but not exceeding semestral report of the sangguniang
Ten thousand pesos (P10,000.00), barangay concerning its activities and
premiums for which shall be paid by the finances as well as problems affecting the
barangay. barangay. Its meetings shall be held upon
(e) The barangay treasurer shall: call of the punong barangay or of at least
four (4) members of the sangguniang
barangay, or upon written petition of at fifteen (15) days from the start of his term
least five percent (5%) of the assembly of office. Such notice shall be posted in
members. three (3) conspicuous places in the
(c) No meeting of the barangay assembly barangay continuously for a period of not
shall take place unless a written notice is less than three (3) weeks;
given one (1) week prior to the meeting (d) The punong barangay, taking into
except on matters involving public safety consideration any opposition to the
or security, in which case notice within a proposed appointment or any
reasonable time shall be sufficient. The recommendations for appointment as may
punong barangay, or in his absence, the have been made within the period of
sangguniang barangay member acting as posting, shall within ten (10) days
punong barangay, or any assembly member thereafter, appoint as members those
selected during the meeting, shall act as whom he determines to be suitable
presiding officer in all the meetings of the therefor. Appointments shall be in writing,
assembly. The barangay secretary, or in his signed by the punong barangay, and
absence, any member designated by the attested to by the barangay secretary.
presiding officer to act as secretary, shall (e) The list of appointed members shall be
discharge the duties of secretary of the posted in three (3) conspicuous places in
barangay assembly. the barangay for the entire duration of
SECTION 398. Powers of the Barangay their term of office; and
Assembly. – The barangay assembly shall: (f) In barangays where majority of the
(a) Initiate legislative processes by inhabitants are members of indigenous
recommending to the sangguniang cultural communities, local systems of
barangay the adoption of measures for the settling disputes through their councils of
welfare of the barangay and the city or datus or elders shall be recognized without
municipality concerned; prejudice to the applicable provisions of
(b) Decide on the adoption of initiative as a this Code.
legal process whereby the registered voters SECTION 400. Oath and Term of Office. –
of the barangay may directly propose, Upon appointment, each lupon member
enact, or amend any ordinance; and shall take an oath of office before the
(c) Hear and pass upon the semestral report punong barangay. He shall hold office until
of the sangguniang barangay concerning its a new lupon is constituted on the third
activities and finances. year following his appointment unless
CHAPTER VII sooner terminated by resignation, transfer
Katarungang Pambarangay of residence or place of work, or withdrawal
SECTION 399. Lupong Tagapamayapa. – (a) of appointment by the punong barangay
There is hereby created in each barangay a with the concurrence of the majority of all
lupong tagapamayapa, hereinafter referred the members of the lupon.
to as the lupon, composed of the punong SECTION 401. Vacancies. – Should a
barangay, as chairman and ten (10) to vacancy occur in the lupon for any cause,
twenty (20) members. The lupon shall be the punong barangay shall immediately
constituted every three (3) years in the appoint a qualified person who shall hold
manner provided herein. office only for the unexpired portion of the
(b) Any person actually residing or working term.
in the barangay, not otherwise expressly SECTION 402. Functions of the Lupon. –
disqualified by law, and possessing The lupon shall:
integrity, impartiality, independence of (a) Exercise administrative supervision over
mind, sense of fairness, and reputation for the conciliation panels provided herein;
probity, may be appointed a member of the (b) Meet regularly once a month to provide
lupon. a forum for exchange of ideas among its
(c) A notice to constitute the lupon, which members and the public on matters
shall include the names of proposed relevant to the amicable settlement of
members who have expressed their disputes, and to enable various conciliation
willingness to serve, shall be prepared by panel members to share with one another
the punong barangay within the first
their observations and experiences in (b) The lupon or pangkat members shall
effecting speedy resolution of disputes; and serve without compensation, except as
(c) Exercise such other powers and perform provided for in Section 393 and without
such other duties and functions as may be prejudice to incentives as provided for in
prescribed by law or ordinance. this section and in Book IV of this Code.
SECTION 403. Secretary of the Lupon. – The Department of the Interior and Local
The barangay secretary shall concurrently Government shall provide for a system of
serve as the secretary of the lupon. He granting economic or other incentives to
shall record the results of mediation the lupon or pangkat members who
proceedings before the punong barangay adequately demonstrate the ability to
and shall submit a report thereon to the judiciously and expeditiously resolve cases
proper city or municipal courts. He shall referred to them. While in the performance
also receive and keep the records of of their duties, the lupon or pangkat
proceedings submitted to him by the members, whether in public or private
various conciliation panels. employment, shall be deemed to be on
SECTION 404. Pangkat ng Tagapagkasundo. official time, and shall not suffer from any
– (a) There shall be constituted for each diminution in compensation or allowance
dispute brought before the lupon a from said employment by reason thereof.
conciliation panel to be known as the SECTION 407. Legal Advice on Matters
pangkat ng tagapagkasundo, hereinafter Involving Questions of Law. – The
referred to as the pangkat, consisting of provincial, city legal officer or prosecutor
three (3) members who shall be chosen by or the municipal legal officer shall render
the parties to the dispute from the list of legal advice on matters involving questions
members of the lupon. of law to the punong barangay or any lupon
Should the parties fail to agree on the or pangkat member whenever necessary in
pangkat membership, the same shall be the exercise of his functions in the
determined by lots drawn by the lupon administration of the katarungang
chairman. pambarangay.
(b) The three (3) members constituting the SECTION 408. Subject Matter for Amicable
pangkat shall elect from among themselves Settlement; Exception Thereto. – The lupon
the chairman and the secretary. The of each barangay shall have authority to
secretary shall prepare the minutes of the bring together the parties actually residing
pangkat proceedings and submit a copy in the same city or municipality for
duly attested to by the chairman to the amicable settlement of all disputes except:
lupon secretary and to the proper city or (a) Where one party is the government, or
municipal court. He shall issue and cause any subdivision or instrumentality thereof;
to be served notices to the parties (b) Where one party is a public officer or
concerned. employee, and the dispute relates to the
The lupon secretary shall issue certified performance of his official functions;
true copies of any public record in his (c) Offenses punishable by imprisonment
custody that is not by law otherwise exceeding one (1) year or a fine exceeding
declared confidential. Five thousand pesos (P5,000.00);
SECTION 405. Vacancies in the Pangkat. – (d) Offenses where there is no private
Any vacancy in the pangkat shall be chosen offended party;
by the parties to the dispute from among (e) Where the dispute involves real
the other lupon members. Should the properties located in different cities or
parties fail to agree on a common choice, municipalities unless the parties thereto
the vacancy shall be filled by lot to be agree to submit their differences to
drawn by the lupon chairman. amicable settlement by an appropriate
SECTION 406. Character of Office and lupon;
Service of Lupon Members. – (a) The lupon (f) Disputes involving parties who actually
members, while in the performance of their reside in barangays of different cities or
official duties or on the occasion thereof, municipalities, except where such barangay
shall be deemed as persons in authority, as units adjoin each other and the parties
defined in the Revised Penal Code. thereto agree to submit their differences to
amicable settlement by an appropriate day, summon the respondent(s), with
lupon; notice to the complainant(s) for them and
(g) Such other classes of disputes which the their witnesses to appear before him for a
President may determine in the interest of mediation of their conflicting interests. If
justice or upon the recommendation of the he fails in his mediation effort within
Secretary of Justice. fifteen (15) days from the first meeting of
The court in which non-criminal cases not the parties before him, he shall forthwith
falling within the authority of the lupon set a date for the constitution of the
under this Code are filed may, at any time pangkat in accordance with the provisions
before trial, motu proprio refer the case to of this Chapter.
the lupon concerned for amicable (c) Suspension of prescriptive period of
settlement. offenses – While the dispute is under
SECTION 409. Venue. – (a) Disputes mediation, conciliation, or arbitration, the
between persons actually residing in the prescriptive periods for offenses and cause
same barangay shall be brought for of action under existing laws shall be
amicable settlement before the lupon of interrupted upon filing of the complaint
said barangay. with the punong barangay. The prescriptive
(b) Those involving actual residents of periods shall resume upon receipt by the
different barangays within the same city or complainant of the complaint or the
municipality shall be brought in the certificate of repudiation or of the
barangay where the respondent or any of certification to file action issued by the
the respondents actually resides, at the lupon or pangkat secretary: Provided,
election of the complainant. however, That such interruption shall not
(c) All disputes involving real property or exceed sixty (60) days from the filing of the
any interest therein shall be brought in the complaint with the punong barangay.
barangay where the real property or the (d) Issuance of summons; hearing; grounds
larger portion thereof is situated. for disqualification – The pangkat shall
(d) Those arising at the workplace where convene not later than three (3) days from
the contending parties are employed or at its constitution, on the day and hour set by
the institution where such parties are the lupon chairman, to hear both parties
enrolled for study, shall be brought in the and their witnesses, simplify issues, and
barangay where such workplace or explore all possibilities for amicable
institution is located. settlement. For this purpose, the pangkat
Objections to venue shall be raised in the may issue summons for the personal
mediation proceedings before the punong appearance of parties and witnesses before
barangay; otherwise, the same shall be it. In the event that a party moves to
deemed waived. Any legal question which disqualify any member of the pangkat by
may confront the punong barangay in reason of relationship, bias, interest, or any
resolving objections to venue herein other similar grounds discovered after the
referred to may be submitted to the constitution of the pangkat, the matter
Secretary of Justice or his duly designated shall be resolved by the affirmative vote of
representative, whose ruling thereon shall the majority of the pangkat whose decision
be binding. shall be final. Should disqualification be
SECTION 410. Procedure for Amicable decided upon, the resulting vacancy shall
Settlement. – (a) Who may initiate be filled as herein provided for.
proceeding – Upon payment of the e) Period to arrive at a settlement – The
appropriate filing fee, any individual who pangkat shall arrive at a settlement or
has a cause of action against another resolution of the dispute within fifteen (15)
individual involving any matter within the days from the day it convenes in
authority of the lupon may complain, orally accordance with this section. This period
or in writing, to the lupon chairman of the shall, at the discretion of the pangkat, be
barangay. extendible for another period which shall
(b) Mediation by lupon chairman – Upon not exceed fifteen (15) days, except in
receipt of the complaint, the lupon clearly meritorious cases.
chairman shall, within the next working
SECTION 411. Form of Settlement. – All period for repudiation and within ten (10)
amicable settlements shall be in writing, in days thereafter.
a language or dialect known to the parties, (b) The arbitration award shall be in writing
signed by them, and attested to by the in a language or dialect known to the
lupon chairman or the pangkat chairman, parties. When the parties to the dispute do
as the case may be. When the parties to the not use the same language or dialect, the
dispute do not use the same language or award shall be written in the language or
dialect, the settlement shall be written in dialect known to them.
the language known to them. SECTION 414. Proceedings Open to the
SECTION 412. Conciliation. – (a) Pre- Public; Exception. – All proceedings for
condition to Filing of Complaint in Court. – settlement shall be public and informal:
No complaint, petition, action, or Provided, however, That the lupon
proceeding involving any matter within the chairman or the pangkat chairman, as the
authority of the lupon shall be filed or case may be, may motu proprio or upon
instituted directly in court or any other request of a party, exclude the public from
government office for adjudication, unless the proceedings in the interest of privacy,
there has been a confrontation between the decency, or public morals.
parties before the lupon chairman or the SECTION 415. Appearance of Parties in
pangkat, and that no conciliation or Person. – In all katarungang pambarangay
settlement has been reached as certified by proceedings, the parties must appear in
the lupon secretary or pangkat secretary as person without the assistance of counsel or
attested to by the lupon or pangkat representative, except for minors and
chairman or unless the settlement has incompetents who may be assisted by their
been repudiated by the parties thereto. next-of-kin who are not lawyers.
(b) Where Parties May Go Directly to Court. SECTION 416. Effect of Amicable
– The parties may go directly to court in Settlement and Arbitration Award. – The
the following instances: amicable settlement and arbitration award
(1) Where the accused is under detention; shall have the force and effect of a final
(2) Where a person has otherwise been judgment of a court upon the expiration of
deprived of personal liberty calling for ten (10) days from the date thereof, unless
habeas corpus proceedings; repudiation of the settlement has been
(3) Where actions are coupled with made or a petition to nullify the award has
provisional remedies such as preliminary been filed before the proper city or
injunction, attachment, delivery of municipal court.
personal property and support pendente However, this provision shall not apply to
lite; and court cases settled by the lupon under the
(4) Where the action may otherwise be last paragraph of Section 408 of this Code,
barred by the statute of limitations. in which case the compromise settlement
(c) Conciliation Among Members of agreed upon by the parties before the lupon
Indigenous Cultural Communities.  – The chairman or the pangkat chairman shall be
customs and traditions of indigenous submitted to the court and upon approval
cultural communities shall be applied in thereof, have the force and effect of a
settling disputes between members of the judgment of said court.
cultural communities. SECTION 417. Execution. – The amicable
SECTION 413. Arbitration. – (a) The parties settlement or arbitration award may be
may, at any stage of the proceedings, agree enforced by execution by the lupon within
in writing that they shall abide by the six (6) months from the date of the
arbitration award of the lupon chairman or settlement. After the lapse of such time,
the pangkat. Such agreement to arbitrate the settlement may be enforced by action
may be repudiated within five (5) days from in the appropriate city or municipal court.
the date thereof for the same grounds and SECTION 418. Repudiation. – Any party to
in accordance with the procedure the dispute may, within ten (10) days from
hereinafter prescribed. The arbitration the date of the settlement, repudiate the
award shall be made after the lapse of the same by filing with the lupon chairman a
statement to that effect sworn to before
him, where the consent is vitiated by fraud, eighteen (18) years of age on the day of the
violence, or intimidation. Such repudiation election, and who are duly registered in the
shall be sufficient basis for the issuance of list of the sangguniang kabataan or in the
the certification for filing a complaint as official barangay list in the custody of the
hereinabove provided. barangay secretary.
SECTION 419. Transmittal of Settlement SECTION 425. Meetings of the Katipunan
and Arbitration Award to the Court. – The ng Kabataan. – The katipunan ng kabataan
secretary of the lupon shall transmit the shall meet at least once every three (3)
settlement or the arbitration award to the months, or at the call of the chairman of
appropriate city or municipal court within the sangguniang kabataan or upon written
five (5) days from the date of the award or petition of at least one-twentieth (1/20) of
from the lapse of the ten-day period its members, to decide on important issues
repudiating the settlement and shall affecting the youth of the barangay.
furnish copies thereof to each of the SECTION 426. Powers and Functions of the
parties to the settlement and the lupon Sangguniang Kabataan. – The sangguniang
chairman. kabataan shall:
SECTION 420. Power to Administer Oaths. (a) Promulgate resolutions necessary to
– The punong barangay, as chairman of the carry out the objectives of the youth in the
lupong tagapamayapa, and the members of barangay in accordance with the applicable
the pangkat are hereby authorized to provisions of this Code;
administer oaths in connection with any (b) Initiate programs designed to enhance
matter relating to all proceedings in the the social, political, economic, cultural,
implementation of the katarungang intellectual, moral, spiritual, and physical
pambarangay. development of the members;
SECTION 421. Administration; Rules and (c) Hold fund-raising activities, the
Regulations. – The city or municipal mayor, proceeds of which shall be tax-exempt and
as the case may be, shall see to the shall accrue to the general fund of the
efficient and effective implementation and sangguniang kabataan: Provided, however,
administration of the katarungang That in the appropriation thereof, the
pambarangay. The Secretary of Justice specific purpose for which such activity
shall promulgate the rules and regulations has been held shall be first satisfied;
necessary to implement this Chapter. (d) Create such bodies or committees as it
SECTION 422. Appropriations. – Such may deem necessary to effectively carry
amount as may be necessary for the out its programs and activities;
effective implementation of the (e) Submit annual and end-of-term reports
katarungang pambarangay shall be to the sangguniang barangay on their
provided for in the annual budget of the projects and activities for the survival and
city or municipality concerned. development of the youth in the barangay;
CHAPTER VIII (f) Consult and coordinate with all youth
Sangguniang Kabataan organizations in the barangay for policy
SECTION 423. Creation and Election. – (a) formulation and program implementation;
There shall be in every barangay a (g) Coordinate with the appropriate
sangguniang kabataan to be composed of a national agency for the implementation of
chairman, seven (7) members, a secretary, youth development projects and programs
and a treasurer. at the national level;
(b) A sangguniang kabataan official who, (h) Exercise such other powers and perform
during his term of office, shall have passed such other duties and functions as the
the age of twenty-one (21) years shall be sangguniang barangay may determine or
allowed to serve the remaining portion of delegate or as may be prescribed by law or
the term for which he was elected. ordinance.
SECTION 424. Katipunan ng Kabataan. – SECTION 427. Meetings of the Sangguniang
The katipunan ng kabataan shall be Kabataan. – The sangguniang kabataan
composed of Filipino citizens actually shall meet regularly once a month on the
residing in the barangay for at least six (6) date, time, and place to be fixed by the said
months, who are fifteen (15) but less than sanggunian. Special meetings may be called
by the sangguniang kabataan chairman or (c) Exercise general supervision over the
any three (3) of its members by giving affairs and activities of the sangguniang
written notice to all members of the date, kabataan and the official conduct of its
time, place and agenda of the meeting at members, and such other officers of the
least one (1) day in advance. Notices of sangguniang kabataan within his
regular or special meetings shall be jurisdiction;
furnished the punong barangay and the (d) With the concurrence of the
sangguniang barangay. sangguniang kabataan, appoint from among
A majority of the members of the the members of the sangguniang kabataan,
sangguniang kabataan shall constitute a the secretary and treasurer and such other
quorum. officers as may be deemed necessary; and
SECTION 428. Qualifications. – An elective (e) Exercise such other powers and perform
official of the sangguniang kabataan must such other duties and functions as may be
be a Filipino citizen, a qualified voter of prescribed by law or ordinance.
the katipunan ng kabataan, a resident of SECTION 432. Sangguniang Kabataan
the barangay for at least one (1) year Secretary. – The sangguniang kabataan
immediately prior to election, at least secretary shall:
fifteen (15) years but less than eighteen (a) Keep all records of the katipunan ng
(18) years of age on the day of the election, kabataan and sangguniang kabataan;
able to read and write Filipino, English, or (b) Prepare and keep the minutes of all
the local dialect, and must not have been meetings of the katipunan ng kabataan and
convicted of any crime involving moral sangguniang kabataan;
turpitude. (c) Prepare all forms necessary for the
SECTION 429. Term of Office. – The conduct of registrations, elections,
sangguniang kabataan chairman and initiatives, referenda, or plebiscites, in
members shall hold office for a period of coordination with the barangay secretary
three (3) years, unless sooner removed for and the COMELEC; and
cause as provided by law, permanently (d) Perform such other duties and discharge
incapacitated, die or resign from office. such other functions as the chairman of
SECTION 430. Sangguniang Kabataan the sangguniang kabataan may prescribe or
Chairman. – The registered voters of the direct.
katipunan ng kabataan shall elect the SECTION 433. Sangguniang Kabataan
chairman of the sangguniang kabataan who Treasurer. – The sangguniang kabataan
shall automatically serve as an ex officio treasurer shall:
member of the sangguniang barangay upon (a) Take custody of all sangguniang
his assumption to office. As such, he shall kabataan property and funds not otherwise
exercise the same powers, discharge the deposited with the city or municipal
same duties and functions, and enjoy the treasurer;
same privileges as the regular sangguniang (b) Collect and receive contributions,
barangay members, and shall be the monies, materials, and all other resources
chairman of the committee on youth and intended for the sangguniang kabataan and
sports development in the said sanggunian. the katipunan ng kabataan;
SECTION 431. Powers and Duties of the (c) Disburse funds in accordance with an
Sangguniang Kabataan Chairman. – In approved budget of the sangguniang
addition to the duties which may be kabataan;
assigned to him by the sangguniang (d) Certify to the availability of funds
barangay, the sangguniang kabataan whenever necessary;
chairman shall: (e) Submit to the sangguniang kabataan and
(a) Call and preside over all meetings of the to the sangguniang barangay certified and
katipunan ng kabataan and the detailed statements of actual income and
sangguniang kabataan; expenditures at the end of every month;
(b) Implement policies, programs, and and
projects within his jurisdiction in (f) Perform such other duties and discharge
coordination with the sangguniang such other functions as the chairman of
barangay; the sangguniang kabataan may direct.
SECTION 434. Privileges of Sangguniang (d) In case of suspension of the
Kabataan Officials. – The sangguniang sangguniang kabataan chairman, the
kabataan chairman shall have the same successor, as determined in subsections (a)
privileges enjoyed by other sangguniang and (b) of this section shall assume the
barangay officials under this Code subject position during the period of such
to such requirements and limitations suspension.
provided herein. During their incumbency, CHAPTER IX
sangguniang kabataan officials shall be Pederasyon ng mga Sangguniang Kabataan
exempt from payment of tuition and SECTION 436. Pederasyon ng mga
matriculation fees while enrolled in public Sangguniang Kabataan. – (a) There shall be
tertiary schools, including state colleges an organization of all the pederasyon ng
and universities. The National Government mga sangguniang kabataan to be known as
shall reimburse said college or university follows:
the amount of the tuition and (1) In municipalities, pambayang
matriculation fees: Provided, That, to pederasyon ng mga sangguniang kabataan;
qualify for the privilege, the said officials (2) In cities, panlungsod na pederasyon ng
shall enroll in a state college or university mga sangguniang kabataan;
within or nearest their area of jurisdiction. (3) In provinces, panlalawigang pederasyon
SECTION 435. Succession and Filling of ng mga sangguniang kabataan;
Vacancies. – (a) In case a sangguniang (4) In special metropolitan political
kabataan chairman refuses to assume subdivisions, pangmetropolitang
office, fails to qualify, is convicted of a pederasyon ng mga sangguniang kabataan;
felony, voluntarily resigns, dies, is and
permanently incapacitated, is removed (5) On the national level, pambansang
from office, or has been absent without pederasyon ng mga sangguniang kabataan.
leave for more than three (3) consecutive (b) The pederasyon ng mga sangguniang
months, the sangguniang kabataan member kabataan shall, at all levels, elect from
who obtained the next highest number of among themselves the president, vice-
votes in the election immediately president and such other officers as may be
preceding shall assume the office of the necessary and shall be organized in the
chairman for the unexpired portion of the following manner:
term, and shall discharge the powers and (1) The panlungsod and pambayang
duties, and enjoy the rights and privileges pederasyon shall be composed of the
appurtenant to the office. In case the said sangguniang kabataan chairmen of
member refuses to assume the position or barangays in the city or municipality,
fails to qualify, the sangguniang kabataan respectively;
member obtaining the next highest number (2) The panlalawigang pederasyon shall be
of votes shall assume the position of the composed of presidents of the panlungsod
chairman for the unexpired portion of the and pambayang pederasyon;
term. (3) The pangmetropolitang pederasyon shall
(b) Where two (2) or more sangguniang be composed of presidents of the
kabataan members obtained the same next panlungsod and pambayang pederasyon;
highest number of votes, the other (c) The elected presidents of the
sangguniang kabataan members shall pederasyon at the provincial, highly
conduct an election to choose the urbanized city, and metropolitan political
successor to the chairman from among the subdivision levels shall constitute the
said members. pambansang katipunan ng mga
(c) After the vacancy shall have been filled, sangguniang kabataan.
the sangguniang kabataan chairman shall SECTION 437. Constitution and By-Laws. –
call a special election to complete the The term of office, manner of election,
membership of said sanggunian. Such removal and suspension of the officers of
sangguniang kabataan member shall hold the pederasyon ng mga sangguniang
office for the unexpired portion of the term kabataan at all levels shall be governed by
of the vacant seat. the constitution and by-laws of the
pederasyon in conformity with the
provisions of this Code and national barangays, serves primarily as a general
policies on youth. purpose government for the coordination
SECTION 438. Membership in the and delivery of basic, regular and direct
Sanggunian. – (a) A sangguniang kabataan services and effective governance of the
chairman shall, upon certification of his inhabitants within its territorial
election by the COMELEC and during his jurisdiction.
tenure of office is elected as pederasyon SECTION 441. Manner of Creation. – A
president, serve as an ex officio member of municipality may be created, divided,
the sangguniang panlalawigan, sangguniang merged, abolished, or its boundary
panlungsod, and sangguniang bayan, as the substantially altered only by an Act of
case may be, without need of further Congress and subject to the approval by a
appointment. majority of the votes cast in a plebiscite to
(b) The vice-president of the pederasyon be conducted by the COMELEC in the local
whose president has been elected as government unit or units directly affected.
president of a higher pederasyon shall Except as may otherwise be provided in the
serve as ex officio member of the said Act, the plebiscite shall be held within
sanggunian concerned without need of one hundred twenty (120) days from the
further appointment. date of its effectivity.
(c) The pederasyon president or vice- SECTION 442. Requisites for Creation. – (a)
president, as the case may be, shall be the A municipality may be created if it has an
chairman of the committee on youth and average annual income, as certified by the
sports development of the sanggunian provincial treasurer, of at least Two million
concerned. five hundred thousand pesos
CHAPTER X (P2,500,000.00) for the last two (2)
Linggo ng Kabataan consecutive years based on the 1991
SECTION 439. Observance of Linggo ng constant prices; a population of at least
Kabataan. – (a) Every barangay, twenty-five thousand (25,000) inhabitants
municipality, city and province shall, in as certified by the National Statistics
coordination with the pederasyon ng mga Office; and a contiguous territory of at
sangguniang kabataan at all levels, conduct least fifty (50) square kilometers as
an annual activity to be known as the certified by the Lands Management Bureau:
Linggo ng Kabataan on such date as shall Provided, That the creation thereof shall
be determined by the Office of the not reduce the land area, population or
President. income of the original municipality or
(b) The observance of the Linggo ng municipalities at the time of said creation
Kabataan shall include the election of the to less than the minimum requirements
counterparts of all local elective and prescribed herein.
appointive officials, as well as heads of (b) The territorial jurisdiction of a newly-
national offices or agencies stationed or created municipality shall be properly
assigned in the territorial jurisdiction of identified by metes and bounds. The
the local government unit, among in-school requirement on land area shall not apply
and community youth residing in the local where the municipality proposed to be
government unit concerned from ages created is composed of one (1) or more
thirteen (13) to seventeen (17). During said islands. The territory need not be
week, they shall hold office as boy and girl contiguous if it comprises two (2) or more
officials and shall perform such duties and islands.
conduct such activities as may be provided (c) The average annual income shall include
in the ordinance enacted pursuant to this the income accruing to the general fund of
Chapter. the municipality concerned, exclusive of
TITLE II special funds, transfers and non-recurring
The Municipality income.
CHAPTER I (d) Municipalities existing as of the date of
Role and Creation of the Municipality the effectivity of this Code shall continue
SECTION 440. Role of the Municipality. – to exist and operate as such. Existing
The municipality, consisting of a group of municipal districts organized pursuant to
presidential issuances or executive orders vice-mayor, and sangguniang bayan
and which have their respective set of members shall take effect until after the
elective municipal officials holding office expiration of the full term of all the
at the time of the effectivity of this Code elective local officials approving such
shall henceforth be considered as regular increase.
municipalities. CHAPTER III
CHAPTER II Officials and Offices Common to All
Municipal Officials in General Municipalities
SECTION 443. Officials of the Municipal ARTICLE I
Government. – (a) There shall be in each The Municipal Mayor
municipality a municipal mayor, a SECTION 444. The Chief Executive:
municipal vice-mayor, sangguniang bayan Powers, Duties, Functions and
members, a secretary to the sangguniang Compensation. – (a) The municipal mayor,
bayan, a municipal treasurer, a municipal as the chief executive of the municipal
assessor, a municipal accountant, a government, shall exercise such powers
municipal budget officer, a municipal and performs such duties and functions as
planning and development coordinator, a provided by this Code and other laws.
municipal engineer/building official, a (b) For efficient, effective and economical
municipal health officer and a municipal governance the purpose of which is the
civil registrar. general welfare of the municipality and its
(b) In addition thereto, the mayor may inhabitants pursuant to Section 16 of this
appoint a municipal administrator, a Code, the municipal mayor shall:
municipal legal officer, a municipal (1) Exercise general supervision and control
agriculturist, a municipal environment and over all programs, projects, services, and
natural resources officer, a municipal social activities of the municipal government,
welfare and development officer, a and in this connection, shall:
municipal architect, and a municipal (i) Determine the guidelines of municipal
information officer. policies and be responsible to the
(c) The sangguniang bayan may: sangguniang bayan for the program of
(1) Maintain existing offices not mentioned government;
in subsections (a) and (b) hereof; (ii) Direct the formulation of the municipal
(2) Create such other offices as may be development plan, with the assistance of
necessary to carry out the purposes of the the municipal development council, and
municipal government; or upon approval thereof by the sangguniang
(3) Consolidate the functions of any office bayan, implement the same;
with those of another in the interest of (iii) At the opening of the regular session of
efficiency and economy. the sangguniang bayan for every calendar
(d) Unless otherwise provided herein, heads year and, as may be deemed necessary,
of departments and offices shall be present the program of government and
appointed by the municipal mayor with the propose policies and projects for the
concurrence of the majority of all the consideration of the sangguniang bayan as
sangguniang bayan members, subject to the general welfare of the inhabitants and
civil service law, rules and regulations. The the needs of the municipal government
sangguniang bayan shall act on the may require;
appointment within fifteen (15) days from (iv) Initiate and propose legislative
the date of its submission; otherwise, the measures to the sangguniang bayan and,
same shall be deemed confirmed. from time to time as the situation may
(e) Elective and appointive municipal require, provide such information and data
officials shall receive such compensation, needed or requested by said sanggunian in
allowances and other emoluments as may the performance of its legislative functions;
be determined by law or ordinance, subject (v) Appoint all officials and employees
to the budgetary limitations on personal whose salaries and wages are wholly or
services as prescribed in Title Five, Book mainly paid out of municipal funds and
Two of this Code: Provided, That no whose appointments are not otherwise
increase in compensation of the mayor,
provided for in this Code, as well as those give appropriate counsel to local officials
he may be authorized by law to appoint; and inhabitants, inform the component
(vi) Upon authorization by the sangguniang barangay officials and inhabitants of
bayan, represent the municipality in all its general laws and ordinances which
business transactions and sign on its behalf especially concern them, and otherwise
all bonds, contracts, and obligations, and conduct visits and inspections to the end
such other documents made pursuant to that the governance of the municipality
law or ordinance; will improve the quality of life of the
(vii) Carry out such emergency measures as inhabitants;
may be necessary during and in the (xiv) Act on leave applications of officials
aftermath of man-made and natural and employees appointed by him and the
disasters and calamities; commutation of the monetary value of
(viii) Determine, according to law or leave credits according to law;
ordinance, the time, manner and place of (xv) Authorize official trips outside of the
payment of salaries or wages of the officials municipality of municipal officials and
and employees of the municipality; employees for a period not exceeding thirty
(ix) Allocate and assign office space to (30) days;
municipal and other officials and (xvi) Call upon any national official or
employees who, by law or ordinance, are employee stationed in or assigned to the
entitled to such space in the municipal hall municipality to advise him on matters
and other buildings owned or leased by the affecting the municipality and to make
municipal government; recommendations thereon, or to coordinate
(x) Ensure that all executive officials and in the formulation and implementation of
employees of the municipality faithfully plans, programs and projects, and when
discharge their duties and functions as appropriate, initiate an administrative or
provided by law and this Code, and cause judicial action against a national
to be instituted administrative or judicial government official or employee who may
proceedings against any official or have committed an offense in the
employee of the municipality who may performance of his official duties while
have committed an offense in the stationed in or assigned to the local
performance of his official duties; government unit concerned;
(xi) Examine the books, records and other (xvii) Subject to availability of funds,
documents of all offices, officials, agents or authorize payment of medical care,
employees of the municipality and in aid of necessary transportation, subsistence,
his executive powers and authority, require hospital or medical fees of municipal
all national officials and employees officials and employees who are injured
stationed in or assigned to the while in the performance of their official
municipality to make available to him such duties and functions;
books, records, and other documents in (xviii) Solemnize marriages, any provision
their custody, except those classified by of law to the contrary notwithstanding;
law as confidential; (xix) Conduct a palarong bayan, in
(xii) Furnish copies of executive orders coordination with the Department of
issued by him to the provincial governor Education, Culture and Sports, as an
within seventy-two (72) hours after their annual activity which shall feature
issuance: Provided, That municipalities of traditional sports and disciplines included
Metropolitan Manila Area and that of any in national and international games; and
metropolitan political subdivision shall (xx) Submit to the provincial governor the
furnish copies of said executive orders to following reports: an annual report
the metropolitan authority council containing a summary of all matters
chairman and to the Office of the pertaining to the management,
President; administration and development of the
(xiii) Visit component barangays of the municipality and all information and data
municipality at least once every six (6) relative to its political, social and
months to deepen his understanding of economic conditions; and supplemental
problems and conditions therein, listen and reports when unexpected events and
situations arise at any time during the (3) Initiate and maximize the generation of
year, particularly when man-made or resources and revenues, and apply the
natural disasters or calamities affect the same to the implementation of
general welfare of the municipality, development plans, program objectives and
province, region or country. Mayors of priorities as provided for under Section 18
municipalities of the Metropolitan Manila of this Code, particularly those resources
Area and other metropolitan political and revenues programmed for agro-
subdivisions shall submit said reports to industrial development and country-wide
their respective metropolitan council growth and progress, and relative thereto,
chairmen and to the Office of the shall:
President; (i) Require each head of an office or
(2) Enforce all laws and ordinances relative department to prepare and submit an
to the governance of the municipality and estimate of appropriations for the ensuing
the exercise of its corporate powers calendar year, in accordance with the
provided for under Section 22 of this Code, budget preparation process under Title
implement all approved policies, programs, Five, Book II of this Code;
projects, services and activities of the (ii) Prepare and submit to the sanggunian
municipality and, in addition to the for approval the executive and
foregoing, shall: supplemental budgets of the municipality
(i) Ensure that the acts of the for the ensuing calendar year in the
municipality’s component barangays and of manner provided for under Title Five, Book
its officials and employees are within the II of this Code;
scope of their prescribed powers, functions, (iii) Ensure that all taxes and other
duties and responsibilities; revenues of the municipality are collected,
(ii) Call conventions, conferences, seminars and that municipal funds are applied in
or meetings of any elective and appointive accordance with law or ordinance to the
officials of the municipality, including payment of expenses and settlement of
provincial officials and national officials obligations of the municipality;
and employees stationed in or assigned to (iv) Issue licenses and permits and suspend
the municipality at such time and place or revoke the same for any violation of the
and on such subject as he may deem conditions upon which said licenses or
important for the promotion of the general permits had been issued, pursuant to law or
welfare of the local government unit and its ordinance;
inhabitants; (v) Issue permits, without need of approval
(iii) Issue such executive orders as are therefor from any national agency, for the
necessary for the proper enforcement and holding of activities for any charitable or
execution of laws and ordinances; welfare purpose, excluding prohibited
(iv) Be entitled to carry the necessary games of chance or shows contrary to law,
firearm within his territorial jurisdiction; public policy and public morals;
(v) Act as the deputized representative of (vi) Require owners of illegally constructed
the National Police Commission, formulate houses, buildings or other structures to
the peace and order plan of the obtain the necessary permit, subject to
municipality and upon its approval, such fines and penalties as may be imposed
implement the same and exercise general by law or ordinance, or to make necessary
and operational control and supervision changes in the construction of the same
over the local police forces in the when said construction violates any law or
municipality in accordance with R.A. No ordinance, or to order the demolition or
6975; removal of said house, building or structure
(vi) Call upon the appropriate law within the period prescribed by law or
enforcement agencies to suppress disorder, ordinance;
riot, lawless violence, rebellion or sedition (vii) Adopt adequate measures to safeguard
or to apprehend violators of the law when and conserve land, mineral, marine, forest,
public interest so requires and the and other resources of the municipality;
municipal police forces are inadequate to (viii) Provide efficient and effective
cope with the situation or the violators; property and supply management in the
municipality; and protect the funds, (3) Assume the office of the municipal
credits, rights and other properties of the mayor for the unexpired term of the latter
municipality; and in the event of permanent vacancy as
(ix) Institute or cause to be instituted provided for in Section 44, Book I of this
administrative or judicial proceedings for Code;
violation of ordinances in the collection of (4) Exercise the powers and perform the
taxes, fees or charges, and for the recovery duties and functions of the municipal
of funds and property; and cause the mayor in cases of temporary vacancy as
municipality to be defended against all provided for in Section 46, Book I of this
suits to ensure that its interests, resources Code; and
and rights shall be adequately protected; (5) Exercise such other powers and perform
(4) Ensure the delivery of basic services such other duties and functions as may be
and the provision of adequate facilities as prescribed by law or ordinance.
provided for under Section 17 of this Code (b) The vice-mayor shall receive a monthly
and, in addition thereto, shall: compensation corresponding to Salary
(i) Ensure that the construction and repair Grade twenty five (25)  as prescribed under
of roads and highways funded by the R.A. No. 6758 and the implementing
National Government shall be, as far as guidelines issued pursuant thereto.
practicable, carried out in a spatially ARTICLE III
contiguous manner and in coordination The Sangguniang Bayan
with the construction and repair of the SECTION 446. Composition. – (a) The
roads and bridges of the municipality and sangguniang bayan, the legislative body of
the province; and the municipality, shall be composed of the
(ii) Coordinate the implementation of municipal vice mayor as the presiding
technical services rendered by national and officer, the regular sanggunian members,
provincial offices, including public works the president of the municipal chapter of
and infrastructure programs in the the liga ng mga barangay, the president of
municipality; and the pambayang pederasyon ng mga
(5) Exercise such other powers and perform sangguniang kabataan, and the sectoral
such other duties and functions as may be representatives, as members.
prescribed by law or ordinance. (b) In addition thereto, there shall be three
(c) During his incumbency, the municipal (3) sectoral representatives: one (1) from
mayor shall hold office in the municipal the women; and as shall be determined by
hall. the sanggunian concerned within ninety
(d) The municipal mayor shall receive a (90) days prior to the holding of local
minimum monthly compensation elections, one (1) from the agricultural or
corresponding to Salary Grade twenty- industrial workers, and one (1) from other
seven (27)  as prescribed under R.A. No. sectors, including the urban poor,
6758 and the implementing guidelines indigenous cultural communities, or
issued pursuant thereto. disabled persons.
ARTICLE II (c) The regular members of the sangguniang
The Vice Mayor bayan and the sectoral representatives
SECTION 445. Powers, Duties and shall be elected in the manner as may be
Compensation. – (a) The vice-mayor shall: provided for by law.
(1) Be the presiding officer of the SECTION 447. Powers, Duties, Functions
sangguniang bayan and sign all warrants and Compensation. – (a) The sangguniang
drawn on the municipal treasury for all bayan, as the legislative body of the
expenditures appropriated for the municipality, shall enact ordinances,
operation of the sangguniang bayan; approve resolutions and appropriate funds
(2) Subject to civil service law, rules and for the general welfare of the municipality
regulations, appoint all officials and and its inhabitants pursuant to Section 16
employees of the sangguniang bayan, of this Code and in the proper exercise of
except those whose manner of appointment the corporate powers of the municipality as
is specifically provided in this Code; provided for under Section 22 of this Code,
and shall:
(1) Approve ordinances and pass eutrophication of rivers and lakes, or of
resolutions necessary for an efficient and ecological imbalance;
effective municipal government, and in (vii) Subject to the provisions of this Code
this connection shall: and pertinent laws, determine the powers
(i) Review all ordinances approved by the and duties of officials and employees of the
sangguniang barangay and executive orders municipality;
issued by the punong barangay to (viii) Determine the positions and salaries,
determine whether these are within the wages, allowances and other emoluments
scope of the prescribed powers of the and benefits of officials and employees paid
sanggunian and of the punong barangay; wholly or mainly from municipal funds and
(ii) Maintain peace and order by enacting provide for expenditures necessary for the
measures to prevent and suppress proper conduct of programs, projects,
lawlessness, disorder, riot, violence, services, and activities of the municipal
rebellion or sedition and impose penalties government;
for the violation of said ordinances; (ix) Authorize the payment of
(iii) Approve ordinances imposing a fine not compensation to a qualified person not in
exceeding Two thousand five hundred the government service who fills up a
pesos (P2,500.00) or an imprisonment for a temporary vacancy or grant honorarium to
period not exceeding six (6) months, or any qualified official or employee
both in the discretion of the court, for the designated to fill a temporary vacancy in a
violation of a municipal ordinance; concurrent capacity at the rate authorized
(iv) Adopt measures to protect the by law;
inhabitants of the municipality from the (x) Provide a mechanism and the
harmful effects of man-made or natural appropriate funds therefor, to ensure the
disasters and calamities and to provide safety and protection of all municipal
relief services and assistance for victims government property, public documents, or
during and in the aftermath of said records such as those relating to property
disasters or calamities and their return to inventory, land ownership, records of
productive livelihood following said events; births, marriages, deaths, assessments,
(v) Enact ordinances intended to prevent, taxation, accounts, business permits, and
suppress and impose appropriate penalties such other records and documents of
for habitual drunkenness in public places, public interest in the offices and
vagrancy, mendicancy, prostitution, departments of the municipal government;
establishment and maintenance of houses (xi) When the finances of the municipal
of ill repute, gambling and other prohibited government allow, provide for additional
games of chance, fraudulent devices and allowances and other benefits to judges,
ways to obtain money or property, drug prosecutors, public elementary and high
addiction, maintenance of drug dens, drug school teachers, and other national
pushing, juvenile delinquency, the printing, government officials stationed in or
distribution or exhibition of obscene or assigned to the municipality;
pornographic materials or publications, and (xii) Provide for legal assistance to
such other activities inimical to the welfare barangay officials who, in the performance
and morals of the inhabitants of the of their official duties or on the occasion
municipality; thereof, have to initiate judicial
(vi) Protect the environment and impose proceedings or defend themselves against
appropriate penalties for acts which legal action; and
endanger the environment, such as (xiii) Provide for group insurance or
dynamite fishing and other forms of additional insurance coverage for barangay
destructive fishing, illegal logging and officials, including members of barangay
smuggling of logs, smuggling of natural tanod brigades and other service units,
resources products and of endangered with public or private insurance
species of flora and fauna, slash and burn companies, when the finances of the
farming, and such other activities which municipal government allow said coverage.
result in pollution, acceleration of (2) Generate and maximize the use of
resources and revenues for the
development plans, program objectives and (viii) Reclassify land within the jurisdiction
priorities of the municipality as provided of the municipality, subject to the
for under Section 18 of this Code with pertinent provisions of this Code;
particular attention to agro-industrial (ix) Enact integrated zoning ordinances in
development and countryside growth and consonance with the approved
progress, and relative thereto, shall: comprehensive land use plan, subject to
(i) Approve the annual and supplemental existing laws, rules and regulations;
budgets of the municipal government and establish fire limits or zones, particularly
appropriate funds for specific programs, in populous centers; and regulate the
projects, services and activities of the construction, repair or modification of
municipality, or for other purposes not buildings within said fire limits or zones in
contrary to law, in order to promote the accordance with the provisions of the Fire
general welfare of the municipality and its Code;
inhabitants; (x) Subject to national law, process and
(ii) Subject to the provisions of Book II of approve subdivision plans for residential,
this Code and applicable laws and upon the commercial, or industrial purposes and
majority vote of all the members of the other development purposes, and collect
sangguniang bayan, enact ordinances processing fees and other charges, the
levying taxes, fees and charges, prescribing proceeds of which shall accrue entirely to
the rates thereof for general and specific the municipality: Provided, however, That,
purposes, and granting tax exemptions, where approval by a national agency or
incentives or reliefs; office is required, said approval shall not be
(iii) Subject to the provisions of Book II of withheld for more than thirty (30) days
this Code and upon the majority vote of all from receipt of the application. Failure to
the members of the sangguniang bayan, act on the application within the period
authorize the municipal mayor to negotiate stated above shall be deemed as approval
and contract loans and other forms of thereof;
indebtedness; (xi) Subject to the provisions of Book II of
(iv) Subject to the provisions of Book II of this Code, grant the exclusive privilege of
this Code and applicable laws and upon the constructing fish corrals or fish pens, or
majority vote of all the members of the the taking or catching of bangus fry, prawn
sangguniang bayan, enact ordinances fry or kawag-kawag of fry of any species or
authorizing the floating of bonds or other fish within the municipal waters;
instruments of indebtedness, for the (xii) With the concurrence of at least two-
purpose of raising funds to finance thirds (2/3) of all the members of the
development projects; sangguniang bayan, grant tax exemptions,
(v) Appropriate funds for the construction incentives or reliefs to entities engaged in
and maintenance or the rental of buildings community growth-inducing industries,
for the use of the municipality and, upon subject to the provisions of Chapter 5, Title
the majority vote of all the members of the I, Book II of this Code.
sangguniang bayan, authorize the (xiii) Grant loans or provide grants to other
municipal mayor to lease to private parties local government units or to national,
such public buildings held in a proprietary provincial and municipal charitable,
capacity, subject to existing laws, rules and benevolent or educational institutions:
regulations; Provided, That said institutions are
(vi) Prescribe reasonable limits and operated and maintained within the
restraints on the use of property within the municipality;
jurisdiction of the municipality: (xiv) Regulate the numbering of residential,
(vii) Adopt a comprehensive land use plan commercial and other buildings; and
for the municipality: Provided, That the (xv) Regulate the inspection, weighing and
formulation, adoption, or modification of measuring of articles of commerce.
said plan shall be in coordination with the (3) Subject to the provisions of Book II of
approved provincial comprehensive land this Code, grant franchises, enact
use plan; ordinances authorizing the issuance of
permits or licenses, or enact ordinances
levying taxes, fees and charges upon such (i) Declare, prevent or abate any nuisance;
conditions and for such purposes intended (ii) Require that buildings and the premises
to promote the general welfare of the thereof and any land within the
inhabitants of the municipality, and municipality be kept and maintained in a
pursuant to this legislative authority shall: sanitary condition; impose penalties for
(i) Fix and impose reasonable fees and any violation thereof, or upon failure to
charges for all services rendered by the comply with said requirement, have the
municipal government to private persons work done and require the owner,
or entities; administrator or tenant concerned to pay
(ii) Regulate any business, occupation, or the expenses of the same; or require the
practice of profession or calling which does filling up of any land or premises to a grade
not require government examination within necessary for proper sanitation;
the municipality and the conditions under (iii) Regulate the disposal of clinical and
which the license for said business or other wastes from hospitals, clinics and
practice of profession may be issued or other similar establishments;
revoked; (iv) Regulate the establishment, operation
(iii) Prescribe the terms and conditions and maintenance of cafes, restaurants,
under which public utilities owned by the beerhouses, hotels, motels, inns, pension
municipality shall be operated by the houses, lodging houses, and other similar
municipal government or leased to private establishments, including tourist guides
persons or entities, preferably and transports;
cooperatives; (v) Regulate the sale, giving away or
(iv) Regulate the display of and fix the dispensing of any intoxicating malt, vino,
license fees for signs, signboards, or mixed or fermented liquors at any retail
billboards at the place or places where the outlet;
profession or business advertised thereby (vi) Regulate the establishment and provide
is, in whole or in part, conducted; for the inspection of steam boilers or any
(v) Any law to the contrary heating device in buildings and the storage
notwithstanding, authorize and license the of inflammable and highly combustible
establishment, operation, and maintenance materials within the municipality;
of cockpits, and regulate cockfighting and (vii) Regulate the establishment, operation,
commercial breeding of gamecocks: and maintenance of entertainment or
Provided, That existing rights should not amusement facilities, including theatrical
be prejudiced; performances, circuses, billiards pools,
(vi) Subject to the guidelines prescribed by public dancing schools, public dance halls,
the Department of Transportation and sauna baths, massage parlors, and other
Communications, regulate the operation of places of entertainment or amusement;
tricycles and grant franchises for the regulate such other events or activities for
operation thereof within the territorial amusement or entertainment, particularly
jurisdiction of the municipality; those which tend to disturb the community
(vii) Upon approval by a majority vote of all or annoy the inhabitants, or require the
the members of the sangguniang bayan, suspension or suppression of the same; or
grant a franchise to any person, prohibit certain forms of amusement or
partnership, corporation, or cooperative to entertainment in order to protect the
establish, construct, operate and maintain social and moral welfare of the community;
ferries, wharves, markets or (viii) Provide for the impounding of stray
slaughterhouses, or such other similar animals; regulate the keeping of animals in
activities within the municipality as may homes or as part of a business, and the
be allowed by applicable laws: Provided, slaughter, sale or disposition of the same;
That cooperatives shall be given preference and adopt measures to prevent and
in the grant of such a franchise. penalize cruelty to animals; and
(4) Regulate activities relative to the use of (ix) Regulate the establishment, operation,
land, buildings and structures within the and maintenance of funeral parlors and the
municipality in order to promote the burial or cremation of the dead, subject to
general welfare and for said purpose shall: existing laws, rules and regulations.
(5) Approve ordinances which shall ensure municipality and, for this purpose, extend
the efficient and effective delivery of the the coverage of appropriate ordinances
basic services and facilities as provided for over all territory within the drainage area
under Section 17 of this Code, and in of said water supply and within one
addition to said services and facilities, hundred (100) meters of the reservoir,
shall: conduit, canal, aqueduct, pumping station,
(i) Provide for the establishment, or watershed used in connection with the
maintenance, protection, and conservation water service; and regulate the
of communal forests and watersheds, tree consumption, use or wastage of water;
parks, greenbelts, mangroves, and other (viii) Regulate the drilling and excavation
similar forest development projects; of the ground for the laying of water, gas,
(ii) Establish markets, slaughterhouses or sewer, and other pipes and the
animal corrals and authorize the operation construction, repair and maintenance of
thereof, and regulate the construction and public drains, sewers, cesspools, tunnels
operation of private markets, talipapas or and similar structures; regulate the placing
other similar buildings and structures; of poles and the use of crosswalks, curbs,
(iii) Authorize the establishment, and gutters; adopt measures to ensure
maintenance and operation of ferries, public safety against open canals,
wharves, and other structures, and marine manholes, live wires and other similar
and seashore or offshore activities hazards to life and property; and regulate
intended to accelerate productivity; the construction and use of private water
(iv) Regulate the preparation and sale of closets, privies and other similar structures
meat, poultry, fish, vegetables, fruits, fresh in buildings and homes;
dairy products, and other foodstuffs for (ix) Regulate the placing, stringing,
public consumption; attaching, installing, repair and
(v) Regulate the use of streets, avenues, construction of all gas mains, electric,
alleys, sidewalks, bridges, parks and other telegraph and telephone wires, conduits,
public places and approve the construction, meters and other apparatus; and, provide
improvement, repair and maintenance of for the correction, condemnation or
the same; establish bus and vehicle stops removal of the same when found to be
and terminals or regulate the use of the dangerous, defective or otherwise
same by privately-owned vehicles which hazardous to the welfare of the inhabitants;
serve the public; regulate garages and the (x) Subject to the availability of funds and
operation of conveyances for hire; to existing laws, rules and regulations,
designate stands to be occupied by public establish and provide for the operation of
vehicles when not in use; regulate the vocational and technical schools and
putting up of signs, signposts, awnings and similar post-secondary institutions and,
awning posts on the streets; provide for the with the approval of the Department of
lighting, cleaning and sprinkling of streets Education, Culture and Sports, fix and
and public places; collect reasonable fees and other school
(vi) Regulate traffic on all streets and charges on said institutions, subject to
bridges, prohibit the putting up of existing laws on tuition fees;
encroachments or obstacles thereon, and, (xi) Establish a scholarship fund for poor
when necessary in the interest of public but deserving students residing within the
welfare, authorize the removal of municipality in schools located within its
encroachments and illegal constructions in jurisdiction;
public places; (xii) Approve measures and adopt
(vii) Subject to existing laws, provide for quarantine regulations to prevent the
the establishment, operation, maintenance, introduction and spread of diseases;
and repair of an efficient waterworks (xiii) Provide for an efficient and effective
system to supply water for the inhabitants; system of solid waste and garbage
regulate the construction, maintenance, collection and disposal and prohibit
repair and use of hydrants, pumps, cisterns littering and the placing or throwing of
and reservoirs; protect the purity and garbage, refuse and other filth and wastes;
quantity of the water supply of the
(xiv) Provide for the care of paupers, the developed barangays, serves as a general
aged, the sick, persons of unsound mind, purpose government for the coordination
disabled persons, abandoned minors, and delivery of basic, regular, and direct
juvenile delinquents, drug dependents, services and effective governance of the
abused children and other needy and inhabitants within its territorial
disadvantaged persons, particularly jurisdiction.
children and youth below eighteen (18) SECTION 449. Manner of Creation. – A city
years of age and, subject to availability of may be created, divided, merged, abolished,
funds, establish and provide for the or its boundary substantially altered, only
operation of centers and facilities for said by an Act of Congress, and subject to
needy and disadvantaged persons; approval by a majority of the votes cast in
(xv) Establish and provide for the a plebiscite to be conducted by the
maintenance and improvement of jails and COMELEC in the local government unit or
detention centers, institute sound jail units directly affected. Except as may
management programs, and appropriate otherwise be provided in such Act, the
funds for the subsistence of detainees and plebiscite shall be held within one hundred
convicted prisoners in the municipality; twenty (120) days from the date of its
(xvi) Establish a municipal council whose effectivity.
purpose is the promotion of culture and the SECTION 450. Requisites for Creation. – (a)
arts, coordinate with government agencies A municipality or a cluster of barangays
and non-governmental organizations and, may be converted into a component city if
subject to the availability of funds, it has a locally generated average annual
appropriate funds for the support and income, as certified by the Department of
development of the same; and Finance, of at least One hundred million
(xvii) Establish a municipal council for the pesos (P100,000,000.00) for the last two (2)
orderly which shall formulate policies and consecutive years based on 2000 constant
adopt measures mutually beneficial to the prices, and if it has either of the following
elderly and to the community; provide requisites:
incentives for non-governmental agencies (i) a contiguous territory of at least one
and entities and, subject to the availability hundred (100) square kilometers, as
of funds, appropriate funds to support certified by the Land Management Bureau;
programs and projects for the benefit of the or
elderly; and (ii) a population of not less than one
(6) Exercise such other powers and perform hundred fifty thousand (150,000)
such other duties and functions as may be inhabitants, as certified by the National
prescribed by law or ordinance. Statistics Office.
(b) The members of the sangguniang bayan The creation thereof shall not reduce the
shall receive a minimum monthly land area, population and income of the
compensation corresponding to Salary original unit or units at the time of said
Grade twenty-four (24)  as prescribed under creation to less than the minimum
R.A. No. 6758 and the implementing requirements prescribed herein.
guidelines issued pursuant thereto: (b) The territorial jurisdiction of a newly-
Provided, That, in municipalities in created city shall be properly identified by
Metropolitan Manila Area and other metes and bounds. The requirement on
metropolitan political subdivisions, land area shall not apply where the city
members of the sangguniang bayan shall proposed to be created is composed of one
receive a minimum monthly compensation (1) or more islands. The territory need not
corresponding to Salary Grade twenty-five be contiguous if it comprises two (2) or
(25). more islands.
TITLE III (c) The average annual income shall include
The City the income accruing to the general fund,
CHAPTER I exclusive of special funds, transfers, and
Role and Creation of the City non-recurring income.
SECTION 448. Role of the City. – The city, SECTION 451. Cities, Classified. – A city
consisting of more urbanized and may either be component or highly
urbanized: Provided, however, That the SECTION 454. Officials of the City
criteria established in this Code shall not Government. – (a) There shall be in each
affect the classification and corporate city a mayor, a vice-mayor, sangguniang
status of existing cities. panlungsod members, a secretary to the
Independent component cities are those sangguniang panlungsod, a city treasurer, a
component cities whose charters prohibit city assessor, a city accountant, a city
their voters from voting for provincial budget officer, a city planning and
elective officials. Independent component development coordinator, a city engineer, a
cities shall be independent of the province. city health officer, a city civil registrar, a
SECTION 452. Highly Urbanized Cities. – (a) city administrator, a city legal officer, a
Cities with a minimum population of two city veterinarian, a city social welfare and
hundred thousand (200,000) inhabitants, as development officer, and a city general
certified by the National Statistics Office, services officer.
and within the latest annual income of at (b) In addition thereto, the city mayor may
least Fifty Million Pesos (P50,000,000.00) appoint a city architect, a city information
based on 1991 constant prices, as certified officer, a city agriculturist, a city
by the city treasurer, shall be classified as population officer, a city environment and
highly urbanized cities. natural resources officer, and a city
(b) Cities which do not meet the above cooperatives officer.
requirements shall be considered The appointment of a city population
component cities of the province in which officer shall be optional in the city:
they are geographically located. If a Provided, however, That cities which have
component city is located within the existing population offices shall continue
boundaries of two (2) or more provinces, to maintain such offices for a period of five
such city shall be considered a component (5) years from the date of the effectivity of
of the province of which it used to be a this Code, after which said offices shall
municipality. become optional.
(c) Qualified voters of highly urbanized (c) The sangguniang panlungsod may:
cities shall remain excluded from voting for (1) Maintain existing offices not mentioned
elective provincial officials. in subsections (a) and (b) hereof;
Unless otherwise provided in the (2) Create such other offices as may be
Constitution or this Code, qualified voters necessary to carry out the purposes of the
of independent component cities shall be city government; or
governed by their respective charters, as (3) Consolidate the functions of any office
amended, on the participation of voters in with those of another in the interest of
provincial elections. efficiency and economy.
Qualified voters of cities who acquired the (d) Unless otherwise provided herein, heads
right to vote for elective provincial officials of departments and offices shall be
prior to the classification of said cities as appointed by the city mayor with the
highly-urbanized after the ratification of concurrence of the majority of all the
the Constitution and before the effectivity sangguniang panlungsod members, subject
of this Code, shall continue to exercise to civil service law, rules and regulations.
such right. The sangguniang panlungsod shall act on
SECTION 453. Duty to Declare Highly the appointment within fifteen (15) days
Urbanized Status. – It shall be the duty of from the date of its submission, otherwise
the President to declare a city as highly the same shall be deemed confirmed.
urbanized within thirty (30) days after it (e) Elective and appointive city officials
shall have met the minimum requirements shall receive such compensation,
prescribed in the immediately preceding allowances, and other emoluments as may
section, upon proper application therefor be determined by law or ordinance, subject
and ratification in a plebiscite by the to the budgetary limitations on personal
qualified voters therein. services prescribed under Title Five, Book
CHAPTER II II of this Code: Provided, That no increase
City Officials in General in compensation of the mayor, vice-mayor
and sangguniang panlungsod members shall
take effect until after the expiration of the sangguniang panlungsod or pursuant to law
full term of the said local officials or ordinance;
approving such increase. (vii) Carry out such emergency measures as
CHAPTER III may be necessary during and in the
Officials and Offices Common to All Cities aftermath of man-made and natural
ARTICLE I disasters and calamities;
The City Mayor (viii) Determine the time, manner and place
SECTION 455. Chief Executive; Powers, of payment of salaries or wages of the
Duties and Compensation. – (a) The city officials and employees of the city, in
mayor, as chief executive of the city accordance with law or ordinance;
government, shall exercise such powers (ix) Allocate and assign office space to city
and perform such duties and functions as and other officials and employees who, by
provided by this Code and other laws. law or ordinance, are entitled to such space
(b) For efficient, effective and economical in the city hall and other buildings owned
governance the purpose of which is the or leased by the city government;
general welfare of the city and its (x) Ensure that all executive officials and
inhabitants pursuant to Section 16 of this employees of the city faithfully discharge
Code, the city mayor shall: their duties and functions as provided by
(1) Exercise general supervision and control law and this Code, and cause to be
over all programs, projects, services, and instituted administrative or judicial
activities of the city government, and in proceedings against any official or
this connection, shall: employee of the city who may have
(i) Determine the guidelines of city policies committed an offense in the performance
and be responsible to the sangguniang of his official duties;
panlungsod for the program of government; (xi) Examine the books, records and other
(ii) Direct the formulation of the city documents of all offices, officials, agents or
development plan, with the assistance of employees of the city and, in aid of his
the city development council, and upon executive powers and authority, require all
approval thereof by the sangguniang national officials and employees stationed
panlungsod, implement the same; in or assigned to the city to make available
(iii) Present the program of government and to him such books, records, and other
propose policies and projects for the documents in their custody, except those
consideration of the sangguniang classified by law as confidential;
panlungsod at the opening of the regular (xii) Furnish copies of executive orders
session of the sangguniang panlungsod issued by him, to the provincial governor in
every calendar year and as often as may be the case of component city mayors, to the
deemed necessary as the general welfare of Office of the President in the case of
the inhabitants and the needs of the city highly-urbanized city mayors, and to their
government may require; respective metropolitan council chairmen
(iv) Initiate and propose legislative in the case of mayors of cities in the
measures to the sangguniang panlungsod Metropolitan Manila Area and other
and as often as may be deemed necessary, metropolitan political subdivisions, within
provide such information and data needed seventy-two (72) hours after their issuance;
or requested by said sanggunian in the (xiii) Visit component barangays of the city
performance of its legislative functions; at least once every six (6) months to
(v) Appoint all officials and employees deepen his understanding of problems and
whose salaries and wages are wholly or conditions, listen and give appropriate
mainly paid out of city funds and whose counsel to local officials and inhabitants,
appointments are not otherwise provided inform the component barangay officials
for in this Code, as well as those he may be and inhabitants of general laws and
authorized by law to appoint; ordinances which especially concern them,
(vi) Represent the city in all its business and otherwise conduct visits and
transactions and sign in its behalf all inspections to ensure that the governance
bonds, contracts, and obligations, and such of the city will improve the quality of life of
other documents upon authority of the the inhabitants;
(xiv) Act on leave applications of officials (2) Enforce all laws and ordinances relative
and employees appointed by him and the to the governance of the city and in the
commutation of the monetary value of exercise of the appropriate corporate
their leave credits in accordance with law; powers provided for under Section 22 of
(xv) Authorize official trips of city officials this Code, implement all approved policies,
and employees outside of the city for a programs, projects, services and activities
period not exceeding thirty (30) days; of the city and, in addition to the
(xvi) Call upon any national official or foregoing, shall:
employee stationed in or assigned to the (i) Ensure that the acts of the city’s
city to advise him on matters affecting the component barangays and of its officials
city and to make recommendations and employees are within the scope of their
thereon; coordinate with said official or prescribed powers, duties and functions;
employee in the formulation and (ii) Call conventions, conferences,
implementation of plans, programs and seminars, or meetings of any elective and
projects; and, when appropriate, initiate an appointive officials of the city, including
administrative or judicial action against a provincial officials and national officials
national government official or employee and employees stationed in or assigned to
who may have committed an offense in the the city, at such time and place and on
performance of his official duties while such subject as he may deem important for
stationed in or assigned to the city; the promotion of the general welfare of the
(xvii) Authorize payment for medical care, local government unit and its inhabitants;
necessary transportation, subsistence, (iii) Issue such executive orders for the
hospital or medical fees of city officials and faithful and appropriate enforcement and
employees who are injured while in the execution of laws and ordinances;
performance of their duties and functions, (iv) Be entitled to carry the necessary
subject to availability of funds; firearm within his territorial jurisdiction;
(xviii) Solemnize marriages, any provision (v) Act as the deputized representative of
of law to the contrary notwithstanding; the National Police Commission, formulate
(xix) Conduct an annual palarong the peace and order plan of the city and
panlungsod, which shall feature traditional upon its approval, implement the same;
sports and disciplines included in national and as such exercise general and
and international games, in coordination operational control and supervision over
with the Department of Education, Culture the local police forces in the city, in
and Sports; and accordance with R.A. No. 6975;
(xx) Submit to the provincial governor, in (vi) Call upon the appropriate law
the case of component cities; to the Office enforcement agencies to suppress disorder,
of the President, in the case of highly- riot, lawless violence, rebellion or sedition,
urbanized cities; to their respective or to apprehend violators of the law when
metropolitan authority council chairmen public interest so requires and the city
and to the Office of the President, in the police forces are inadequate to cope with
case of cities of the Metropolitan Manila the situations or the violators;
Area and other metropolitan political (3) Initiate and maximize the generation of
subdivisions, the following reports: an resources and revenues, and apply the
annual report containing a summary of all same to the implementation of
matters pertinent to the management, development plans, program objectives and
administration and development of the city priorities as provided for under Section 18
and all information and data relative to its of this Code, particularly those resources
political, social and economic conditions; and revenues programmed for agro-
and supplemental reports when unexpected industrial development and countryside
events and situations arise at any time growth and progress and, relative thereto,
during the year, particularly when man- shall:
made or natural disasters or calamities (i) Require each head of an office or
affect the general welfare of the city, department to prepare and submit an
province, region or country; estimate of appropriations for the ensuing
calendar year, in accordance with the
budget preparation process under Title (i) Ensure that the construction and repair
Five, Book II of this Code; of roads and highways funded by the
(ii) Prepare and submit to the sanggunian national government shall be, as far as
for approval the executive and practicable, carried out in a spatially
supplemental budgets of the city for the contiguous manner and in coordination
ensuing calendar year in the manner with the construction and repair of the
provided for under Title Five, Book II of roads and bridges of the city, and in the
this Code; case of component cities, of the city and of
(iii) Ensure that all taxes and other the province; and
revenues of the city are collected, and that (ii) Coordinate the implementation of
city funds are applied to the payment of technical services, including public works
expenses and settlement of obligations of and infrastructure programs, rendered by
the city, in accordance with law or national offices in the case of highly
ordinance; urbanized and independent component
(iv) Issue licenses and permits and suspend cities, and by national and provincial
or revoke the same for any violation of the offices in the case of component cities; and
conditions upon which said licenses or (5) Exercise such other powers and perform
permits had been issued, pursuant to law or such other duties and functions as may be
ordinance; prescribed by law or ordinance.
(v) Issue permits, without need of approval (c) During his incumbency, the city mayor
therefor from any national agency, for the shall hold office in the city hall.
holding of activities for any charitable or (d) The city mayor shall receive a minimum
welfare purpose, excluding prohibited monthly compensation corresponding to
games of chance or shows contrary to law, Salary Grade Thirty (30) as prescribed
public policy and public morals; under R.A. No. 6758 and the implementing
(vi) Require owners of illegally constructed guidelines issued pursuant thereto.
houses, buildings or other structures to ARTICLE II
obtain the necessary permit, subject to The City Vice-Mayor
such fines and penalties as may be imposed SECTION 456. Powers, Duties and
by law or ordinance, or to make necessary Compensation. – (a) The city vice-mayor
changes in the construction of the same shall:
when said construction violates any law or (1) Be the presiding officer of the
ordinance, or to order the demolition or sangguniang panlungsod and sign all
removal of said house, building or structure warrants drawn on the city treasury for all
within the period prescribed by law or expenditures appropriated for the
ordinance; operation of the sangguniang panlungsod;
(vii) Adopt adequate measures to safeguard (2) Subject to civil service law, rules and
and conserve land, mineral, marine, forest, regulations, appoint all officials and
and other resources of the city; employees of the sangguniang panlungsod,
(viii) Provide efficient and effective except those whose manner of appointment
property and supply management in the is specifically provided in this Code;
city; and protect the funds, credits, rights (3) Assume the office of the city mayor for
and other properties of the city; and the unexpired term of the latter in the
(ix) Institute or cause to be instituted event of permanent vacancy as provided for
administrative or judicial proceedings for in Section 44, Book I of this Code;
violation of ordinances in the collection of (4) Exercise the powers and perform the
taxes, fees or charges, and for the recovery duties and functions of the city mayor in
of funds and property; and cause the city cases of temporary vacancy as provided for
to be defended against all suits to ensure in Section 46, Book I of this Code; and
that its interests, resources and rights shall (5) Exercise such other powers and perform
be adequately protected; such other duties and functions as may be
(4) Ensure the delivery of basic services prescribed by law or ordinance.
and the provision of adequate facilities as (b) The city vice-mayor shall receive a
provided for under Section 17 of this Code monthly compensation corresponding to
and, in addition thereto, shall: Salary Grade twenty-eight (28) for a highly
urbanized city and Salary Grade twenty-six (iii) Approve ordinances imposing a fine not
(26) for a component city, as prescribed exceeding Five thousand pesos (P5,000.00)
under R.A. No. 6758 and the implementing or an imprisonment for a period not
guidelines issued pursuant thereto. exceeding one (1) year, or both in the
ARTICLE III discretion of the court, for the violation of
The Sangguniang Panlungsod a city ordinance;
SECTION 457. Composition – (a) The (iv) Adopt measures to protect the
sangguniang panlungsod, the legislative inhabitants of the city from the harmful
body of the city, shall be composed of the effects of man-made or natural disasters
city vice-mayor as presiding officer, the and calamities, and to provide relief
regular sanggunian members, the president services and assistance for victims during
of the city chapter of the liga ng mga and in the aftermath of said disasters or
barangay, the president of the panlungsod calamities and their return to productive
na pederasyon ng mga sangguniang livelihood following said events;
kabataan, and the sectoral representatives, (v) Enact ordinances intended to prevent,
as members. suppress and impose appropriate penalties
(b) In addition thereto, there shall be three for habitual drunkenness in public places,
(3) sectoral representatives: one (1) from vagrancy, mendicancy, prostitution,
the women; and as shall be determined by establishment and maintenance of houses
the sanggunian concerned within ninety of ill repute, gambling and other prohibited
(90) days prior to the holding of the local games of chance, fraudulent devices and
elections, one (1) from the agricultural or ways to obtain money or property, drug
industrial workers; and one (1) from the addiction, maintenance of drug dens, drug
other sectors, including the urban poor, pushing, juvenile delinquency, the printing,
indigenous cultural communities, or distribution or exhibition of obscene or
disabled persons. pornographic materials or publications, and
(c) The regular members of the sangguniang such other activities inimical to the welfare
panlungsod and the sectoral and morals of the inhabitants of the city.
representatives shall be elected in the (vi) Protect the environment and impose
manner as may be provided for by law. appropriate penalties for acts which
SECTION 458. Powers, Duties, Functions endanger the environment, such as
and Compensation. – (a) The sangguniang dynamite fishing and other forms of
panlungsod, as the legislative body of the destructive fishing, illegal logging and
city, shall enact ordinances, approve smuggling of logs, smuggling of natural
resolutions and appropriate funds for the resources products and of endangered
general welfare of the city and its species of flora and fauna, slash and burn
inhabitants pursuant to Section 16 of this farming, and such other activities which
Code and in the proper exercise of the result in pollution, acceleration of
corporate powers of the city as provided for eutrophication of rivers and lakes, or of
under Section 22 of this Code, and shall: ecological imbalance;
(1) Approve ordinances and pass (vii) Subject to the provisions of this Code
resolutions necessary for an efficient and and pertinent laws, determine the powers
effective city government, and in this and duties of officials and employees of the
connection, shall: city;
(i) Review all ordinances approved by the (viii) Determine the positions and the
sangguniang barangay and executive orders salaries, wages, allowances and other
issued by the punong barangay to emoluments and benefits of officials and
determine whether these are within the employees paid wholly or mainly from city
scope of the prescribed powers of the funds and provide for expenditures
sanggunian and of the punong barangay; necessary for the proper conduct of
(ii) Maintain peace and order by enacting programs, projects, services, and activities
measures to prevent and suppress of the city government;
lawlessness, disorder, riot, violence, (ix) Authorize the payment of
rebellion or sedition and impose penalties compensation to a qualified person not in
for violation of said ordinances; the government service who fills up a
temporary vacancy or grant honorarium to the rates thereof for general and specific
any qualified official or employee purposes, and granting tax exemptions,
designated to fill a temporary vacancy in a incentives or reliefs;
concurrent capacity, at the rate authorized (iii) Subject to the provisions of Book II of
by law; this Code and upon the majority vote of all
(x) Provide a mechanism and the the members of the sangguniang
appropriate funds therefor, to ensure the panlungsod, authorize the city mayor to
safety and protection of all city negotiate and contract loans and other
government property, public documents, or forms of indebtedness;
records such as those relating to property (iv) Subject to the provisions of Book II of
inventory, land ownership, records of this Code and applicable laws and upon the
births, marriages, deaths, assessments, majority vote of all the members of the
taxation, accounts, business permits, and sangguniang panlungsod, enact ordinances
such other records and documents of authorizing the floating of bonds or other
public interest in the offices and instruments of indebtedness, for the
departments of the city government; purpose of raising funds to finance
(xi) When the finances of the city development projects;
government allow, provide for additional (v) Appropriate funds for the construction
allowances and other benefits to judges, and maintenance or the rental of buildings
prosecutors, public elementary and high for the use of the city; and, upon the
school teachers, and other national majority vote of all the members of the
government officials stationed in or sangguniang panlungsod, authorize the city
assigned to the city; mayor to lease to private parties such
(xii) Provide legal assistance to barangay public buildings held in a proprietary
officials who, in the performance of their capacity, subject to existing laws, rules and
official duties or on the occasion thereof, regulations;
have to initiate judicial proceedings or (vi) Prescribe reasonable limits and
defend themselves against legal action; and restraints on the use of property within the
(xiii) Provide for group insurance or jurisdiction of the city;
additional insurance coverage for all (vii) Adopt a comprehensive land use plan
barangay officials, including members of for the city: Provided, That in the case of
barangay tanod brigades and other service component cities, the formulation,
units, with public or private insurance adoption or modification of said plan shall
companies, when the finances of the city be in coordination with the approved
government allow said coverage; provincial comprehensive land use plan;
(2) Generate and maximize the use of (viii) Reclassify land within the jurisdiction
resources and revenues for the of the city, subject to the pertinent
development plans, program objectives and provisions of this Code;
priorities of the city as provided for under (ix) Enact integrated zoning ordinances in
Section 18 of this Code, with particular consonance with the approved
attention to agro-industrial development comprehensive land use plan, subject to
and city-wide growth and progress, and existing laws, rules and regulations;
relative thereto, shall: establish fire limits or zones, particularly
(i) Approve the annual and supplemental in populous centers; and regulate the
budgets of the city government and construction, repair or modification of
appropriate funds for specific programs, buildings within said fire limits or zones in
projects, services and activities of the city, accordance with the provisions of the Fire
or for other purposes not contrary to law, Code;
in order to promote the general welfare of (x) Subject to national law, process and
the city and its inhabitants; approve subdivision plans for residential,
(ii) Subject to the provisions of Book II of commercial, or industrial purposes and
this Code and applicable laws and upon the other development purposes, and to collect
majority vote of all the members of the processing fees and other charges, the
sangguniang panlungsod, enact ordinances proceeds of which shall accrue entirely to
levying taxes, fees and charges, prescribing the city: Provided, however, That where
approval of a national agency or office is (iv) Regulate the display of and fix the
required, said approval shall not be license fees for signs, signboards, or
withheld for more than thirty (30) days billboards at the place or places where the
from receipt of the application. Failure to profession or business advertised thereby
act on the application within the period is, in whole or in part, conducted;
stated above shall be deemed as approval (v) Any law to the contrary
thereof; notwithstanding, authorize and license the
(xi) Subject to the provisions of Book II of establishment, operation, and maintenance
this Code, grant the exclusive privilege of of cockpits, and regulate cockfighting and
constructing fish corrals or fish pens, or commercial breeding of gamecocks:
the taking or catching of bangus fry, prawn Provided, That existing rights should not
fry or kawag-kawag, or fry of any species or be prejudiced;
fish within the city waters; (vi) Subject to the guidelines prescribed by
(xii) With the concurrence of at least two- the Department of Transportation and
thirds (2/3) of all the members of the Communications, regulate the operation of
sangguniang panlungsod, grant tax tricycles and grant franchises for the
exemptions, incentives or reliefs to entities operation thereof within the territorial
engaged in community growth-inducing jurisdiction of the city; and
industries, subject to the provisions of (vii) Upon approval by a majority vote of all
Chapter 5, Title I, Book II of this Code; the members of the sangguniang
(xiii) Grant loans or provide grants to other panlungsod: grant a franchise to any
local government units or to national, person, partnership, corporation, or
provincial, and city charitable, benevolent cooperative to do business within the city;
or educational institutions: Provided, That, establish, construct, operate and maintain
said institutions are operated and ferries, wharves, markets or
maintained within the city; slaughterhouses; or undertake such other
(xiv) Regulate the numbering of residential, activities within the city as may be allowed
commercial and other buildings; and by existing laws: Provided, That,
(xv) Regulate the inspection, weighing and cooperatives shall be given preference in
measuring of articles of commerce. the grant of such franchise.
(3) Subject to the provisions of Book II of (4) Regulate activities relative to the use of
this Code, enact ordinances granting land, buildings and structures within the
franchises and authorizing the issuance of city in order to promote the general welfare
permits or licenses, upon such conditions and for said purpose shall:
and for such purposes intended to promote (i) Declare, prevent or abate any nuisance;
the general welfare of the inhabitants of (ii) Require that buildings and the premises
the city and pursuant to this legislative thereof and any land within the city be
authority shall: kept and maintained in a sanitary
(i) Fix and impose reasonable fees and condition; impose penalties for any
charges for all services rendered by the city violation thereof; or, upon failure to
government to private persons or entities; comply with said requirement, have the
(ii) Regulate or fix license fees for any work done at the expense of the owner,
business or practice of profession within administrator or tenant concerned; or
the city and the conditions under which require the filling up of any land or
the license for said business or practice of premises to a grade necessary for proper
profession may be revoked and enact sanitation;
ordinances levying taxes thereon; (iii) Regulate the disposal of clinical and
(iii) Provide for and set the terms and other wastes from hospitals, clinics and
conditions under which public utilities other similar establishments;
owned by the city shall be operated by the (iv) Regulate the establishment, operation
city government, and prescribe the and maintenance of cafes, restaurants,
conditions under which the same may be beerhouses, hotels, motels, inns, pension
leased to private persons or entities, houses, lodging houses, and other similar
preferably cooperatives; establishments, including tourist guides
and transports;
(v) Regulate the sale, giving away or productivity related to marine and
dispensing of any intoxicating malt, vino, seashore or offshore activities;
mixed or fermented liquors at any retail (iv) Regulate the preparation and sale of
outlet; meat, poultry, fish, vegetables, fruits, fresh
(vi) Regulate the establishment and provide dairy products, and other foodstuffs for
for the inspection of steam boilers or any public consumption;
heating device in buildings and the storage (v) Regulate the use of streets, avenues,
of inflammable and highly combustible alleys, sidewalks, bridges, parks and other
materials within the city; public places and approve the construction,
(vii) Regulate the establishment, operation, improvement, repair and maintenance of
and maintenance of any entertainment or the same; establish bus and vehicle stops
amusement facilities, including theatrical and terminals or regulate the use of the
performances, circuses, billiard pools, same by privately-owned vehicles which
public dancing schools, public dance halls, serve the public; regulate garages and the
sauna baths, massage parlors, and other operation of conveyances for hire;
places for entertainment or amusement; designate stands to be occupied by public
regulate such other events or activities for vehicles when not in use; regulate the
amusement or entertainment, particularly putting up of signs, signposts, awnings and
those which tend to disturb the community awning posts on the streets; and provide
or annoy the inhabitants, or require the for the lighting, cleaning and sprinkling of
suspension or suppression of the same; or streets; and public places;
prohibit certain forms of amusement or (vi) Regulate traffic on all streets and
entertainment in order to protect the bridges; prohibit encroachments or
social and moral welfare of the community; obstacles thereon, and when necessary in
(viii) Provide for the impounding of stray the interest of public welfare, authorize the
animals; regulate the keeping of animals in removal or encroachments and illegal
homes or as part of a business, and the constructions in public places;
slaughter, sale or disposition of the same; (vii) Subject to existing laws, establish and
and adopt measures to prevent and provide for the maintenance, repair and
penalize cruelty to animals; and operation of an efficient waterworks
(ix) Regulate the establishment, operation system to supply water for the inhabitants
and maintenance of funeral parlors and the and to purify the source of the water
burial or cremation of the dead, subject to supply; regulate the construction,
existing laws, rules and regulations. maintenance, repair and use of hydrants,
(5) Approve ordinances which shall ensure pumps, cisterns and reservoirs; protect the
the efficient and effective delivery of the purity and quantity of the water supply of
basic services and facilities as provided for the city and, for this purpose, extend the
under Section 17 of this Code, and in coverage of appropriate ordinances over all
addition to said services and facilities, territory within the drainage area of said
shall: water supply and within one hundred (100)
(i) Provide for the establishment, meters of the reservoir, conduit, canal,
maintenance, protection, and conservation aqueduct, pumping station, or watershed
of communal forests and watersheds, tree used in connection with the water service;
parks, greenbelts, mangroves, and other and regulate the consumption, use or
similar forest development projects; wastage of water and fix and collect
(ii) Establish markets, slaughterhouses or charges therefor;
animal corrals and authorize the operation (viii) Regulate the drilling and excavation
thereof by the city government; and of the ground for the laying of water, gas,
regulate the construction and operation of sewer, and other pipes and the
private markets, talipapas or other similar construction, repair and maintenance of
buildings and structures; public drains, sewers, cesspools, tunnels
(iii) Authorize the establishment, and similar structures; regulate the placing
maintenance and operation by the city of poles and the use of crosswalks, curbs,
government of ferries, wharves, and other and gutters; adopt measures to ensure
structures intended to accelerate public safety against open canals,
manholes, live wires and other similar (xvi) Establish a city council whose purpose
hazards to life and property; and regulate is the promotion of culture and the arts,
the construction and use of private water coordinate with government agencies and
closets, privies and other similar structures non-governmental organizations and,
in buildings and homes; subject to the availability of funds,
(ix) Regulate the placing, stringing, appropriate funds for the support and
attaching, installing, repair and development of the same; and
construction of all gas mains, electric, (xvii) Establish a city council for the elderly
telegraph and telephone wires, conduits, which shall formulate policies and adopt
meters and other apparatus; and provide measures mutually beneficial to the elderly
for the correction, condemnation or and to the community; provide incentives
removal of the same when found to be for non-governmental agencies and entities
dangerous, defective, or otherwise and, subject to the availability of funds,
hazardous to the welfare of the inhabitants; appropriate funds to support programs and
(x) Subject to the availability of funds and projects for the benefit of the elderly; and
to existing laws, rules and regulations, (6) Exercise such other powers and perform
establish and provide for the operation of such other duties and functions as may be
vocational and technical schools and prescribed by law or ordinance.
similar post-secondary institutions and, (b) The members of the sangguniang
with the approval of the Department of panlungsod of component cities shall
Education, Culture and Sports and subject receive a minimum monthly compensation
to existing law on tuition fees, fix and corresponding to Salary Grade twenty-five
collect reasonable tuition fees and other (25) and members of the sangguniang
school charges in educational institutions panlungsod of highly-urbanized cities shall
supported by the city government; receive a minimum monthly compensation
(xi) Establish a scholarship fund for poor corresponding to Salary Grade twenty-
but deserving students in schools located seven (27), as prescribed under Republic
within its jurisdiction or for students Act No. 6758 and the implementing
residing within the city; guidelines issued pursuant thereto.
(xii) Approve measures and adopt TITLE IV
quarantine regulations to prevent the The Province
introduction and spread of diseases; CHAPTER I
(xiii) Provide for an efficient and effective Role and Creation of the Province
system of solid waste and garbage SECTION 459. Role of the Province. – The
collection and disposal; prohibit littering province, composed of a cluster of
and the placing or throwing of garbage, municipalities, or municipalities and
refuse and other filth and wastes; component cities, and as a political and
(xiv) Provide for the care of disabled corporate unit of government, serves as
persons, paupers, the aged, the sick, dynamic mechanism for developmental
persons of unsound mind, abandoned processes and effective governance of local
minors, juvenile delinquents, drug government units within its territorial
dependents, abused children and other jurisdiction.
needy and disadvantaged persons, SECTION 460. Manner of Creation. – A
particularly children and youth below province may be created, divided, merged,
eighteen (18) years of age; and subject to abolished, or its boundary substantially
availability of funds, establish and provide altered, only by an Act of Congress and
for the operation of centers and facilities subject to approval by a majority of the
for said needy and disadvantaged persons; votes cast in a plebiscite to be conducted
(xv) Establish and provide for the by the COMELEC in the local government
maintenance and improvement of jails and unit or units directly affected. The
detention centers, institute a sound jail plebiscite shall be held within one hundred
management program, and appropriate twenty (120) days from the date of
funds for the subsistence of detainees and effectivity of said Act, unless otherwise
convicted prisoners in the city; provided therein.
SECTION 461. Requisites for Creation. – (a) a negative vote in the plebiscite results,
A province may be created if it has an shall be filled by appointment by the
average annual income, as certified by the President. The appointees shall hold office
Department of Finance, of not less than until their successors shall have been
Twenty million pesos (P20,000,000.00) elected in the regular local elections
based on 1991 constant prices and either following the plebiscite mentioned herein
of the following requisites: and qualified. After effectivity of such
(i) a contiguous territory of at least two conversion, the President shall fill up the
thousand (2,000) square kilometers, as position of governor of the newly-created
certified by the Lands Management Bureau; province through appointment if none has
or yet been appointed to the same as
(ii) a population of not less than two hereinbefore provided, and shall also
hundred fifty thousand (250,000) appoint a vice-governor and the other
inhabitants as certified by the National members of the sangguniang panlalawigan,
Statistics Office: all of whom shall likewise hold office until
Provided, That, the creation thereof shall their successors shall have been elected in
not reduce the land area, population, and the next regular local elections and
income of the original unit or units at the qualified.
time of said creation to less than the All qualified appointive officials and
minimum requirements prescribed herein. employees in the career service of the said
(b) The territory need not be contiguous if subprovinces at the time of their
it comprises two (2) or more islands or is conversion into regular provinces shall
separated by a chartered city or cities continue in office in accordance with civil
which do not contribute to the income of service law, rules and regulations.
the province. CHAPTER II
(c) The average annual income shall include Provincial Officials in General
the income accruing to the general fund, SECTION 463. Officials of the Provincial
exclusive of special funds, trust funds, Government. – (a) There shall be in each
transfers and non-recurring income. province a governor, a vice-governor,
SECTION 462. Existing Sub-Provinces. – members of the sangguniang panlalawigan,
Existing sub-provinces are hereby a secretary to the sangguniang
converted into regular provinces upon panlalawigan, a provincial treasurer, a
approval by a majority of the votes cast in provincial assessor, a provincial
a plebiscite to be held in the said accountant, a provincial engineer, a
subprovinces and the original provinces provincial budget officer, a provincial
directly affected. The plebiscite shall be planning and development coordinator, a
conducted by the COMELEC provincial legal officer, a provincial
simultaneously with the national elections administrator, a provincial health officer, a
following the effectivity of this Code. provincial social welfare and development
The new legislative districts created as a officer, a provincial general services officer,
result of such conversion shall continue to a provincial agriculturist, and a provincial
be represented in Congress by the duly- veterinarian.
elected representatives of the original (b) In addition thereto, the governor may
districts out of which said new provinces or appoint a provincial population officer, a
districts were created until their own provincial natural resources and
representatives shall have been elected in environment officer, a provincial
the next regular congressional elections cooperative officer, a provincial architect,
and qualified. and a provincial information officer.
The incumbent elected officials of the said The appointment of a provincial population
subprovinces converted into regular officer shall be optional in the province:
provinces shall continue to hold office until Provided, however, That provinces which
June 30, 1992. Any vacancy occurring in have existing population offices shall
the offices occupied by said incumbent continue to maintain such offices for a
elected officials, or resulting from period of five (5) years from the date of the
expiration of their terms of office in case of
effectivity of this Code, after which said powers and perform such duties and
offices shall become optional. functions as provided by this Code and
(c) The sangguniang panlalawigan may: other laws.
(1) Maintain existing offices not mentioned (b) For efficient, effective and economical
in subsections (a) and (b) hereof; governance the purpose of which is the
(2) Create such other offices as may be general welfare of the province and its
necessary to carry out the purposes of the inhabitants pursuant to Section 16 of this
provincial government; or Code, the provincial governor shall:
(3) Consolidate the functions of any office (1) Exercise general supervision and control
with those of another in the interest of over all programs, projects, services, and
efficiency and economy; activities of the provincial government,
(d) Unless otherwise provided herein, heads and in this connection, shall:
of departments and offices shall be (i) Determine the guidelines of provincial
appointed by the governor with the policies and be responsible to the
concurrence of the majority of all the sangguniang panlalawigan for the program
sangguniang panlalawigan members, of government;
subject to civil service law, rules and (ii) Direct the formulation of the provincial
regulations. The sangguniang panlalawigan development plan, with the assistance of
shall act on the appointment within fifteen the provincial development council, and
(15) days from the date of its submission; upon approval thereof by the sangguniang
otherwise the same shall be deemed panlalawigan, implement the same;
confirmed; (iii) Present the program of government and
(e) Elective and appointive provincial propose policies and projects for the
officials shall receive such compensation, consideration of the sangguniang
allowances, and other emoluments as may panlalawigan at the opening of the regular
be determined by law or ordinance, subject session of the sangguniang panlalawigan
to the budgetary limitations on personal every calendar year and as often as may be
services prescribed under Title Five, Book deemed necessary as the general welfare of
II of this Code: Provided, That no increase the inhabitants and the needs of the
in compensation shall take effect until provincial government may require;
after the expiration of the full term of all (iv) Initiate and propose legislative
the elective officials approving such measures to the sangguniang panlalawigan
increase. and as often as may be deemed necessary,
SECTION 464. Residence and Office. – provide such information and data needed
During the incumbency of the governor, he or requested by said sanggunian in the
shall have his official residence in the performance of its legislative functions;
capital of the province. All elective and (v) Appoint all officials and employees
appointive provincial officials shall hold whose salaries and wages are wholly or
office in the provincial capital: Provided, mainly paid out of provincial funds and
That, upon resolution of the sangguniang whose appointments are not otherwise
panlalawigan, elective and appointive provided for in this Code, as well as those
provincial officials may hold office in any he may be authorized by law to appoint;
component city or municipality within the (vi) Represent the province in all its
province for a period of not more than business transactions and sign in its behalf
seven (7) days for any given month. all bonds, contracts, and obligations, and
CHAPTER III such other documents upon authority of
Officials and Offices Common to All the sangguniang panlalawigan or pursuant
Provinces to law or ordinance;
ARTICLE I (vii) Carry out such emergency measures as
The Provincial Governor may be necessary during and in the
SECTION 465. The Chief Executive: aftermath of man-made and natural
Powers, Duties, Functions, and disasters and calamities;
Compensation. – (a) The provincial (viii) Determine the time, manner and place
governor, as the chief executive of the of payment of salaries or wages of the
provincial government, shall exercise such
officials and employees of the province, in recommendations thereon; coordinate with
accordance with law or ordinance; said official or employee in the formulation
(ix) Allocate and assign office space to and implementation of plans, programs and
provincial and other officials and projects; and when appropriate, initiate an
employees who, by law or ordinance, are administrative or judicial action against a
entitled to such space in the provincial national government official or employee
capitol and other buildings owned or leased who may have committed an offense in the
by the provincial government; performance of his official duties while
(x) Ensure that all executive officials and stationed in or assigned to the province;
employees of the province faithfully (xvii) Authorize payment for medical care,
discharge their duties and functions as necessary transportation, subsistence,
provided by law and this Code, and cause hospital or medical fees of provincial
to be instituted administrative or judicial officials and employees who are injured
proceedings against any official or while in the performance of their official
employee of the province who may have duties and functions, subject to availability
committed an offense in the performance of funds;
of his official duties; (xviii) Represent the province in inter-
(xi) Examine the books, records and other provincial or regional sports councils or
documents of all offices, officials, agents or committees, and coordinate the efforts of
employees of the province and, in aid of his component cities or municipalities in the
executive powers and authority, require all regional or national palaro or sports
national officials and employees stationed development activities;
in the province to make available to him (xix) Conduct an annual palarong
such books, records, and other documents panlalawigan, which shall feature
in their custody, except those classified by traditional sports and disciplines included
law as confidential; in national and international games in
(xii) Furnish copies of executive orders coordination with the Department of
issued by him to the Office of the President Education, Culture and Sports; and
within seventy-two (72) hours after their (xx) Submit to the Office of the President
issuance; the following reports: an annual report
(xiii) Visit component cities and containing a summary of all matters
municipalities of the province at least once pertinent to the management,
every six (6) months to deepen his administration and development of the
understanding of problems and conditions, province and all information and data
listen and give appropriate counsel to local relative to its political, social and
officials and inhabitants, inform the economic conditions; and supplemental
officials and inhabitants of component reports when unexpected events and
cities and municipalities of general laws situations arise at any time during the
and ordinances which especially concern year, particularly when man-made or
them, and otherwise conduct visits and natural disasters or calamities affect the
inspections to ensure that the governance general welfare of the province, region or
of the province will improve the quality of country;
life of the inhabitants; (2) Enforce all laws and ordinances relative
(xiv) Act on leave applications of officials to the governance of the province and the
and employees appointed by him and the exercise of the appropriate corporate
commutation of the monetary value of powers provided for under Section 22 of
leave credits in accordance with law; this Code, implement all approved policies,
(xv) Authorize official trips of provincial programs, projects, services and activities
officials and employees outside of the of the province and, in addition to the
province for a period not exceeding thirty foregoing, shall:
(30) days; (i) Ensure that the acts of the component
(xvi) Call upon any national official or cities and municipalities of the province
employee stationed in or assigned to the and of its officials and employees are
province to advise him on matters affecting within the scope of their prescribed
the province and to make powers, duties and functions;
(ii) Call conventions, conferences, payment of expenses and settlement of
seminars, or meetings of any elective and obligations of the province, in accordance
appointive officials of the province and its with law or ordinance;
component cities and municipalities, (iv) Issue licenses and permits and suspend
including national officials and employees or revoke the same for any violation of the
stationed in or assigned to the province, at conditions upon which said licenses or
such time and place and on such subject as permits had been issued, pursuant to law or
he may deem important for the promotion ordinance;
of the general welfare of the province and (v) Adopt adequate measures to safeguard
its inhabitants; and conserve land, mineral, marine, forest
(iii) Issue such executive orders for the and other resources of the province, in
faithful and appropriate enforcement and coordination with the mayors of
execution of laws and ordinances; component cities and municipalities;
(iv) Be entitled to carry the necessary (vi) Provide efficient and effective property
firearm within his territorial jurisdiction; and supply management in the province;
(v) In coordination with the mayors of and protect the funds, credits, rights, and
component cities and municipalities and other properties of the province; and
the National Police Commission, formulate (vii) Institute or cause to be instituted
the peace and order plan of the province administrative or judicial proceedings for
and upon its approval, implement the same violation of ordinances in the collection of
in accordance with R.A. No. 6975; taxes, fees or charges, and for the recovery
(vi) Call upon the appropriate national law of funds and property, and cause the
enforcement agencies to suppress disorder, province to be defended against all suits to
riot, lawless violence, rebellion or sedition ensure that its interests, resources and
or to apprehend violators of the law when rights shall be adequately protected.
public interest so requires and the police (4) Ensure the delivery of basic services
forces of the component city or and the provision of adequate facilities as
municipality where the disorder or provided for under Section 17 of this Code,
violation is happening are inadequate to and in addition thereto, shall:
cope with the situation or the violators; (i) Ensure that the construction and repair
(3) Initiate and maximize the generation of of roads and highways funded by the
resources and revenues, and apply the national government shall be, as far as
same to the implementation of practicable, carried out in a spatially
development plans, program objectives and contiguous manner and in coordination
priorities as provided for under Section 18 with the construction and repair of the
of this Code, particularly those resources roads and bridges of the province and of its
and revenues programmed for agro- component cities and municipalities; and
industrial development and country-wide (ii) Coordinate the implementation of
growth and progress and, relative thereto, technical services by national offices for
shall: the province and its component cities and
(i) Require each head of an office or municipalities, including public works and
department to prepare and submit an infrastructure programs of the provincial
estimate of appropriations for the ensuing government and its component cities and
calendar year, in accordance with the municipalities;
budget preparation process under Title (5) Exercise such other powers and perform
Five, Book II of this Code; such other duties and functions as may be
(ii) Prepare and submit to the sanggunian prescribed by law or ordinance.
for approval the executive and (c) The provincial governor shall receive a
supplemental budgets of the province for minimum monthly compensation
the ensuing calendar year in the manner corresponding to Salary Grade thirty (30)
provided for under Title Five, Book II of prescribed under R.A. No. 6758 and the
this Code; implementing guidelines issued pursuant
(iii) Ensure that all taxes and other thereto.
revenues of the province are collected, and ARTICLE II
that provincial funds are applied to the The Provincial Vice-Governor
SECTION 466. Powers, Duties, and indigenous cultural communities, or
Compensation. – (a) The vice-governor disabled persons.
shall: (c) The regular members of the sangguniang
(1) Be the presiding officer of the panlalawigan and the sectoral
sangguniang panlalawigan and sign all representatives shall be elected in the
warrants drawn on the provincial treasury manner as may be provided for by law.
for all expenditures appropriated for the SECTION 468. Powers, Duties, Functions
operation of the sangguniang panlalawigan; and Compensation. – (a) The sangguniang
(2) Subject to civil service law, rules and panlalawigan, as the legislative body of the
regulations, appoint all officials and province, shall enact ordinances, approve
employees of the sangguniang resolutions and appropriate funds for the
panlalawigan, except those whose manner general welfare of the province and its
of appointment is specially provided in this inhabitants pursuant to Section 16 of this
Code; Code in the proper exercise of the
(3) Assume the office of the governor for corporate powers of the province as
the unexpired term of the latter in the provided for under Section 22 of this Code,
event of permanent vacancy as provided for and shall:
in Section 44, Book I of this Code; (1) Approve ordinances and pass
(4) Exercise the powers and perform the resolutions necessary for an efficient and
duties and functions of the governor in effective provincial government and, in
cases of temporary vacancy as provided for this connection, shall:
in Section 46, Book I of this Code; and (i) Review all ordinances approved by the
(5) Exercise such other powers and perform sanggunians of component cities and
such other duties and functions as may be municipalities and executive orders issued
prescribed by law or ordinance. by the mayors of said component units to
(b) The vice-governor shall receive a determine whether these are within the
monthly compensation corresponding to scope of the prescribed powers of the
Salary Grade twenty-eight (28) as sanggunian and of the mayor;
prescribed under R.A. No. 6758 and the (ii) Maintain peace and order by enacting
implementing guidelines issued pursuant measures to prevent and suppress
thereto. lawlessness, disorder, riot, violence,
ARTICLE III rebellion or sedition and impose penalties
The Sangguniang Panlalawigan for the violation of said ordinances;
SECTION 467. Composition. – (a) The (iii) Approve ordinances imposing a fine not
sangguniang panlalawigan, the legislative exceeding Five thousand pesos (P5,000.00)
body of the province, shall be composed of or imprisonment not exceeding one (1)
the provincial vice-governor as presiding year, or both in the discretion of the court,
officer, the regular sanggunian members, for the violation of a provincial ordinance;
the president of the provincial chapter of (iv) Adopt measures to protect the
the liga ng mga barangay, the president of inhabitants of the province from harmful
the panlalawigang pederasyon ng mga effects of man-made or natural disasters
sangguniang kabataan, the president of the and calamities, and to provide relief
provincial federation of sanggunian services and assistance for victims during
members of municipalities and component and in the aftermath of said disasters and
cities, and the sectoral representatives, as calamities and in their return to productive
members. livelihood following said events;
(b) In addition thereto, there shall be three (v) Enact ordinances intended to prevent,
(3) sectoral representatives: one (1) from suppress and impose appropriate penalties
the women; and as shall be determined by for habitual drunkenness in public places,
the sanggunian concerned within ninety vagrancy, mendicancy, prostitution,
(90) days prior to the holding of the local establishment and maintenance of houses
elections, one (1) from the agricultural or of ill repute, gambling and other prohibited
industrial workers; and one (1) from other games of chance, fraudulent devices and
sectors including the urban poor, ways to obtain money or property, drug
addiction, maintenance of drug dens, drug
pushing, juvenile delinquency, the printing, government officials stationed or assigned
distribution or exhibition of obscene or to the province.
pornographic materials or publications, and (2) Generate and maximize the use of
other activities inimical to the welfare and resources and revenues for the
morals of the inhabitants of the province; development plans, program objectives and
(vi) Protect the environment and impose priorities of the province as provided for
appropriate penalties for acts which under Section 18 of this Code, with
endanger the environment, such as particular attention to agro-industrial
dynamite fishing and other forms of development and country-wide growth and
destructive fishing, illegal logging and progress and relative thereto, shall:
smuggling of logs, smuggling of natural (i) Enact the annual and supplemental
resources products and of endangered appropriations of the provincial
species of flora and fauna, slash and burn government and appropriate funds for
farming, and such other activities which specific programs, projects, services and
result in pollution, acceleration of activities of the province, or for other
eutrophication of rivers and lakes, or of purposes not contrary to law, in order to
ecological imbalance; promote the general welfare of the province
(vii) Subject to the provisions of this Code and its inhabitants;
and pertinent laws, determine the powers (ii) Subject to the provisions of Book II of
and duties of officials and employees of the this Code and applicable laws and upon the
province; majority vote of all the members of the
(viii) Determine the positions and the sangguniang panlalawigan, enact
salaries, wages, allowances and other ordinances levying taxes, fees and charges,
emoluments and benefits of officials and prescribing the rates thereof for general
employees paid wholly or mainly from and specific purposes, and granting tax
provincial funds and provide for exemptions, incentives or reliefs;
expenditures necessary for the proper (iii) Subject to the provisions of Book II of
conduct of programs, projects, services, this Code and applicable laws and upon the
and activities of the provincial majority vote of all the members of the
government; sangguniang panlalawigan, authorize the
(ix) Authorize the payment of provincial governor to negotiate and
compensation to a qualified person not in contract loans and other forms of
the government service who fills up a indebtedness;
temporary vacancy, or grant honorarium to (iv) Subject to the provisions of Book II of
any qualified official or employee this Code and applicable laws and upon the
designated to fill a temporary vacancy in a majority vote of all the members of the
concurrent capacity, at the rate authorized sangguniang panlalawigan, enact
by law; ordinances authorizing the floating of
(x) Provide a mechanism and the bonds or other instruments of
appropriate funds therefor, to ensure the indebtedness, for the purpose of raising
safety and protection of all provincial funds to finance development projects;
government property, public documents, or (v) Appropriate funds for the construction
records such as those relating to property and maintenance or the rental of buildings
inventory, land ownership, records of for the use of the province; and upon the
births, marriages, deaths, assessments, majority vote of all the members of the
taxation, accounts, business permits, and sangguniang panlalawigan, authorize the
such other records and documents of provincial governor to lease to private
public interest in the offices and parties such public buildings held in a
departments of the provincial government; proprietary capacity, subject to existing
and laws, rules and regulations;
(xi) When the finances of the provincial (vi) Prescribe reasonable limits and
government allow, provide for additional restraints on the use of property within the
allowances and other benefits to judges, jurisdiction of the province;
prosecutors, public elementary and high (vii) Review the comprehensive land use
school teachers, and other national plans and zoning ordinances of component
cities and municipalities and adopt a located within its jurisdiction or for
comprehensive provincial land use plan, students residing within the province;
subject to existing laws; and (v) Approve measures and adopt quarantine
(3) Adopt measures to enhance the full regulations to prevent the introduction and
implementation of the national agrarian spread of diseases within its territorial
reform program in coordination with the jurisdiction;
Department of Agrarian Reform; (vi) Provide for the care of paupers, the
(4) Subject to the provisions of Book II of aged, the sick, persons of unsound mind,
this Code, grant franchises, approve the abandoned minors, abused children,
issuance of permits or licenses, or enact disabled persons, juvenile delinquents, drug
ordinances levying taxes, fees and charges dependents, and other needy and
upon such conditions and for such disadvantaged persons, particularly
purposes intended to promote the general children and youth below eighteen (18)
welfare of the inhabitants of the province, years of age; subject to availability of
and pursuant to this legislative authority, funds, establish and support the operation
shall: of centers and facilities for said needy and
(i) Fix and impose reasonable fees and disadvantaged persons; and facilitate
charges for all services rendered by the efforts to promote the welfare of families
provincial government to private persons below the poverty threshold, the
or entities; and disadvantaged, and the exploited;
(ii) Regulate and fix the license fees for (vii) Establish and provide the maintenance
such activities as provided for under this and improvement of jails and detention
Code. centers, institute a sound jail management
(5) Approve ordinances which shall ensure program, and appropriate funds for the
the efficient and effective delivery of basic subsistence of detainees and convicted
services and facilities as provided for under prisoners in the province;
Section 17 of this Code, and, in addition to (viii) Establish a provincial council whose
said services and facilities, shall: purpose is the promotion of culture and the
(i) Adopt measures and safeguards against arts, coordinate with government agencies
pollution and for the preservation of the and non-governmental organizations and,
natural ecosystem in the province, in subject to the availability of funds,
consonance with approved standards on appropriate funds for the support and
human settlements and environmental development of the same;
sanitation; (ix) Establish a provincial council for the
(ii) Subject to applicable laws, facilitate or elderly which shall formulate policies and
provide for the establishment and adopt measures mutually beneficial to the
maintenance of a waterworks system or elderly and to the province; and subject to
district waterworks for supplying water to the availability of funds, appropriate funds
inhabitants of component cities and to support programs and projects for the
municipalities; elderly; and provide incentives for non-
(iii) Subject to the availability of funds and governmental agencies and entities to
to existing laws, rules and regulations, support the programs and projects of the
provide for the establishment and elderly; and
operation of vocational and technical (x) Exercise such other powers and perform
schools and similar post-secondary such other duties and functions as may be
institutions; and, with the approval of the prescribed by law or ordinance.
Department of Education, Culture and (b) The members of the sangguniang
Sports and subject to existing laws on panlalawigan shall receive a minimum
tuition fees, fix reasonable tuition fees and monthly compensation corresponding to
other school charges in educational Salary Grade twenty-seven (27) as
institutions supported by the provincial prescribed under R.A. No. 6758 and the
government; implementing guidelines issued pursuant
(iv) Establish a scholarship fund for the thereto.
poor but deserving students in schools TITLE V
Appointive Local Officials Common to All adopted by the sanggunian, with the dates
Municipalities, Cities and Provinces of passage and publication thereof;
ARTICLE I (7) Keep his office and all non-confidential
Secretary to the Sanggunian records therein open to the public during
SECTION 469. Qualifications, Powers and the usual business hours;
Duties. – (a) There shall be a secretary to (8) Translate into the dialect used by the
the sanggunian who shall be a career majority of the inhabitants all ordinances
official with the rank and salary equal to a and resolutions immediately after their
head of department or office. approval, and cause the publication of the
(b) No person shall be appointed secretary same together with the original version in
to the sanggunian unless he is a citizen of the manner provided under this Code; and
the Philippines, a resident of the local (9) Take custody of the local archives  and,
government unit concerned, of good moral where applicable, the local library and
character, a holder of a college degree annually account for the same; and
preferably in law, commerce or public (d) Exercise such other powers and perform
administration from a recognized college or such other duties and functions as may be
university, and a first grade civil service prescribed by law or ordinance relative to
eligible or its equivalent. his position.
The appointment of a secretary to the ARTICLE II
sanggunian is mandatory for provincial, The Treasurer
city and municipal governments. SECTION 470. Appointment, Qualifications,
(c) The secretary to the sanggunian shall Powers, and Duties. – (a) The treasurer shall
take charge of the office of the secretary to be appointed by the Secretary of Finance
the sanggunian and shall: from a list of at least three (3) ranking
(1) Attend meetings of the sanggunian and eligible recommendees of the governor or
keep a journal of its proceedings; mayor, as the case may be, subject to civil
(2) Keep the seal of the local government service law, rules and regulations.
unit and affix the same with his signature (b) The treasurer shall be under the
to all ordinances, resolutions, and other administrative supervision of the governor
official acts of the sanggunian and present or mayor, as the case may be, to whom he
the same to the presiding officer for his shall report regularly on the tax collection
signature; efforts in the local government unit;
(3) Forward to the governor or mayor, as (c) No person shall be appointed treasurer
the case may be, for approval, copies of unless he is a citizen of the Philippines, a
ordinances enacted by the sanggunian and resident of the local government unit
duly certified by the presiding officer, in concerned, of good moral character, a
the manner provided in Section 54 under holder of a college degree preferably in
Book I of this Code; commerce, public administration or law
(4) Forward to the sanggunian panlungsod from a recognized college or university,
or bayan concerned, in the case of the and a first grade civil service eligible or its
sangguniang barangay, and to the equivalent. He must have acquired
sangguniang panlalawigan concerned, in experience in treasury or accounting
the case of the sangguniang panlungsod of service for at least five (5) years in the case
component cities or sangguniang bayan, of the provincial or city treasurer, and
copies of duly approved ordinances, in the three (3) years in the case of municipal
manner provided in Sections 56 and 57 treasurer.
under Book I of this Code; The appointment of a treasurer shall be
(5) Furnish, upon request of any interested mandatory for provincial, city and
party, certified copies of records of public municipal governments;
character in his custody, upon payment to (d) The treasurer shall take charge of the
the treasurer of such fees as may be treasury office, perform the duties provided
prescribed by ordinance; for under Book II of this Code, and shall:
(6) Record in a book kept for the purpose, (1) Advise the governor or mayor, as the
all ordinances and resolutions enacted or case may be, the sanggunian, and other
local government and national officials
concerned regarding disposition of local authority to administer oaths concerning
government funds, and on such other notices and notifications to those
matters relative to public finance; delinquent in the payment of real property
(2) Take custody and exercise proper tax and concerning official matters relating
management of the funds of the local to the accounts of the treasurer or
government unit concerned; otherwise arising in the offices of the
(3) Take charge of the disbursement of all treasurer and the assessor.
local government funds and such other ARTICLE III
funds the custody of which may be The Assessor
entrusted to him by law or other SECTION 472. Qualifications, Powers and
competent authority; Duties.  – (a) No person shall be appointed
(4) Inspect private commercial and assessor unless he is a citizen of the
industrial establishments within the Philippines, a resident of the local
jurisdiction of the local government unit government unit concerned, of good moral
concerned in relation to the character, a holder of a college degree
implementation of tax ordinances, preferably in civil or mechanical
pursuant to the provisions under Book II of engineering, commerce, or any other
this Code; related course from a recognized college or
(5) Maintain and update the tax university, and a first grade civil service
information system of the local eligible or its equivalent. He must have
government unit; acquired experience in real property
(6) In the case of the provincial treasurer, assessment work or in any related field for
exercise technical supervision over all at least five (5) years in the case of the city
treasury offices of component cities and or provincial assessor, and three (3) years
municipalities; and in the case of the municipal assessor.
(e) Exercise such other powers and perform The appointment of an assessor shall be
such other duties and functions as may be mandatory for provincial, city and
prescribed by law or ordinance. municipal governments.
SECTION 471. Assistant Treasurer. – (a) An (b) The assessor shall take charge of the
assistant treasurer may be appointed by assessor’s office, perform the duties
the Secretary of Finance from a list of at provided under Book II of this Code, and
least three (3) ranking, eligible shall:
recommendees of the governor or mayor, (1) Ensure that all laws and policies
subject to civil service law, rules and governing the appraisal and assessment of
regulations. real properties for taxation purposes are
(b) No person shall be appointed assistant properly executed;
treasurer unless he is a citizen of the (2) Initiate, review, and recommend
Philippines, a resident of the local changes in policies and objectives, plans
government unit concerned, of good moral and programs, techniques, procedures and
character, a holder of a college degree practices in the valuation and assessment
preferably in commerce, public of real properties for taxation purposes;
administration, or law from a recognized (3) Establish a systematic method of real
college or university, and a first grade civil property assessment;
service eligible or its equivalent. He must (4) Install and maintain a real property
have acquired at least five (5) years identification and accounting system;
experience in the treasury or accounting (5) Prepare, install and maintain a system
service in the case of the provincial or city of tax mapping, showing graphically all
assistant treasurer, and three (3) years in properties subject to assessment and
the case of municipal assistant treasurer. gather all data concerning the same;
The appointment of an assistant treasurer (6) Conduct frequent physical surveys to
shall be optional for provincial, city and verify and determine whether all real
municipal governments; properties within the province are properly
(c) The assistant treasurer shall assist the listed in the assessment rolls;
treasurer and perform such duties as the (7) Exercise the functions of appraisal and
latter may assign to him. He shall have assessment primarily for taxation purposes
of all real properties in the local eligible or its equivalent. He must have
government unit concerned; acquired experience in assessment or in
(8) Prepare a schedule of the fair market any related field for at least three (3) years
value for the different classes of real in the case of the provincial or city
properties, in accordance with Title Two, assistant assessor, and one (1) year in the
Book II of this Code; case of the city or provincial assistant
(9) Issue, upon request of any interested assessor.
party, certified copies of assessment The appointment of an assistant assessor is
records of real property and all other optional for provincial, city and municipal
records relative to its assessment, upon governments.i
payment of a service charge or fee to the (b) The assistant assessor shall assist the
treasurer; assessor and perform such other duties as
(10) Submit every semester a report of all the latter may assign to him. He shall have
assessments, as well as cancellations and the authority to administer oaths on all
modifications of assessments to the local declarations of real property for purposes
chief executive and the sanggunian of assessments.
concerned; ARTICLE IV
(11) In the case of the assessor of a The Accountant
component city or municipality attend, SECTION 474. Qualifications, Powers and
personally or through an authorized Duties. – (a) No person shall be appointed
representative, all sessions of the local accountant unless he is a citizen of the
Board of Assessment Appeals whenever his Philippines, a resident of the local
assessment is the subject of the appeal, government unit concerned, of good moral
and present or submit any information or character, and a a certified public
record in his possession as may be required accountant. He must have acquired
by the Board; and experience in the treasury or accounting
(12) In the case of the provincial assessor, service for at least five (5) years in the case
exercise technical supervision and of the provincial or city accountant, and
visitorial functions over all component city three (3) years in the case of the municipal
and municipal assessors, coordinate with accountant.
component city or municipal assessors in The appointment of an accountant is
the conduct of tax mapping operations and mandatory for the provincial, city and
all other assessment activities, and provide municipal governments.
all forms of assistance therefor: Provided, (b) The accountant shall take charge of
however, That, upon full provision by the both the accounting and internal audit
component city or municipality concerned services of the local government unit
to its assessor’s office of the minimum concerned and shall:
personnel, equipment, and funding (1) Install and maintain an internal audit
requirements as may be prescribed by the system in the local government unit
Secretary of Finance, such functions shall concerned;
be delegated to the said city or municipal (2) Prepare and submit financial statements
assessor; and to the governor or mayor, as the case may
(c) Exercise such other powers and perform be, and to the sanggunian concerned;
such other duties and functions as may be (3) Appraise the sanggunian and other local
prescribed by law or ordinance. government officials on the financial
SECTION 473. Assistant Assessor.  – (a) No condition and operations of the local
person shall be appointed assistant government unit concerned;
assessor unless he is a citizen of the (4) Certify to the availability of budgetary
Philippines, a resident of the local allotment to which expenditures and
government unit concerned, of good moral obligations may be properly charged;
character, a holder of a college degree (5) Review supporting documents before
preferably in civil or mechanical preparation of vouchers to determine
engineering, commerce, or any related completeness of requirements;
course from a recognized college or (6) Prepare statements of cash advances,
university, and a first grade civil service liquidation, salaries, allowances,
reimbursements and remittances (2) Review and consolidate the budget
pertaining to the local government unit; proposals of different departments and
(7) Prepare statements of journal vouchers offices of the local government unit;
and liquidation of the same and other (3) Assist the governor or mayor, as the
adjustments related thereto; case may be, in the preparation of the
(8) Post individual disbursements to the budget and during budget hearings;
subsidiary ledger and index cards; (4) Study and evaluate budgetary
(9) Maintain individual ledgers for officials implications of proposed legislation and
and employees of the local government submit comments and recommendations
unit pertaining to payrolls and deductions; thereon;
(10) Record and post in index cards details (5) Submit periodic budgetary reports to
of purchased furniture, fixtures, and the Department of Budget and
equipment, including disposal thereof, if Management;
any; (6) Coordinate with the treasurer,
(11) Account for all issued requests for accountant, and the planning and
obligations and maintain and keep all development coordinator for the purpose of
records and reports related thereto; budgeting;
(12) Prepare journals and the analysis of (7) Assist the sanggunian concerned in
obligations and maintain and keep all reviewing the approved budgets of
records and reports related thereto; and component local government units;
(13) Exercise such other powers and (8) Coordinate with the planning and
perform such other duties and functions as development coordinator in the
may be provided by law or ordinance. formulation of the local government unit
(c) The incumbent chief accountant in the development plan; and
office of the treasurer shall be given (c) Exercise such other powers and perform
preference in the appointment to the such other duties and functions as may be
position of accountant. prescribed by law or ordinance.
ARTICLE V (d) The appropriations for personal services
The Budget Officer of the budget officer provided under the
SECTION 475. Qualifications, Powers and Department of Budget and Management
Duties. – (a) No person shall be appointed shall, upon effectivity of this Code, be
budget officer unless he is a citizen of the transferred to the local government unit
Philippines, a resident of the local concerned. Thereafter, the appropriations
government unit concerned, of good moral for personal services of the budget officer
character, a holder of a college degree shall be provided for in full in the budget of
preferably in accounting, economics, public the local government unit.
administration or any related course from a ARTICLE VI
recognized college or university, and a first The Planning and Development Coordinator
grade civil service eligible or its equivalent. SECTION 476. Qualifications, Powers and
He must have acquired experience in Duties. – (a) No person shall be appointed
government budgeting or in any related planning and development coordinator
field for at least five (5) years in the case of unless he is a citizen of the Philippines, a
the provincial or city budget officer, and at resident of the local government unit
least three (3) years in the case of the concerned, of good moral character, a
municipal budget officer. holder of a college degree preferably in
The appointment of a budget officer shall urban planning, development studies,
be mandatory for the provincial, city, and economics, public administration, or any
municipal governments. related course from a recognized college or
(b) The budget officer shall take charge of university, and a first grade civil service
the budget office and shall: eligible or its equivalent. He must have
(1) Prepare forms, orders, and circulars acquired experience in development
embodying instructions on budgetary and planning or in any related field for at least
appropriation matters for the signature of five (5) years in the case of the provincial
the governor or mayor, as the case may be; or city planning and development
coordinator, and three (3) years in the case
of the municipal planning and development city engineer, and three (3) years in the
coordinator. case of the municipal engineer.
The appointment of a planning and The appointment of an engineer shall be
development coordinator shall be mandatory for the provincial, city and
mandatory for provincial, city and municipal governments. The city and
municipal governments. municipal engineer shall also act as the
(b) The planning and development local building official.
coordinator shall take charge of the (b) The engineer shall take charge of the
planning and development office and shall: engineering office and shall:
(1) Formulate integrated economic, social, (1) Initiate, review and recommend changes
physical, and other development plans and in policies and objectives, plans and
policies for consideration of the local programs, techniques, procedures and
government development council; practices in infrastructure development
(2) Conduct continuing studies, researches, and public works in general of the local
and training programs necessary to evolve government unit concerned;
plans and programs for implementation; (2) Advise the governor or mayor, as the
(3) Integrate and coordinate all sectoral case may be, on infrastructure, public
plans and studies undertaken by the works, and other engineering matters;
different functional groups or agencies; (3) Administer, coordinate, supervise, and
(4) Monitor and evaluate the control the construction, maintenance,
implementation of the different improvement, and repair of roads, bridges,
development programs, projects, and and other engineering and public works
activities in the local government unit projects of the local government unit
concerned in accordance with the approved concerned;
development plan; (4) Provide engineering services to the local
(5) Prepare comprehensive plans and other government unit concerned, including
development planning documents for the investigation and survey, engineering
consideration of the local development designs, feasibility studies, and project
council; management;
(6) Analyze the income and expenditure (5) In the case of the provincial engineer,
patterns, and formulate and recommend exercise technical supervision over all
fiscal plans and policies for consideration engineering offices of component cities and
of the finance committee of the local municipalities; and
government unit concerned as provided (c) Exercise such other powers and perform
under Title Five, Book II of this Code; such other duties and functions as may be
(7) Promote people participation in prescribed by law or ordinance.
development planning within the local ARTICLE VIII
government unit concerned; The Health Officer
(8) Exercise supervision and control over SECTION 478. Qualifications, Powers and
the secretariat of the local development Duties. – (a) No person shall be appointed
council; and health officer unless he is a citizen of the
(c) Exercise such other powers and perform Philippines, a resident of the local
such other functions and duties as may be government unit concerned, of good moral
prescribed by law or ordinance. character, and a licensed medical
ARTICLE VII practitioner. He must have acquired
The Engineer experience in the practice of his profession
SECTION 477. Qualifications, Powers and for at least five (5) years in the case of the
Duties. – (a) No person shall be appointed provincial or city health officer, and three
engineer unless he is a citizen of the (3) years in the case of the municipal
Philippines, a resident of the local health officer.
government unit concerned, of good moral The appointment of a health officer shall
character, and a licensed civil engineer. He be mandatory for provincial, city and
must have acquired experience in the municipal governments.
practice of his profession for at least five (b) The health officer shall take charge of
(5) years in the case of the provincial or the office on health services and shall:
(1) Supervise the personnel and staff of said (viii) Coordinate with other government
office, formulate program implementation agencies and non-governmental
guidelines and rules and regulations for the organizations involved in the promotion
operation of the said office for the approval and delivery of health services; and
of the governor or mayor, as the case may (ix) In the case of the provincial health
be, in order to assist him in the efficient, officer, exercise general supervision over
effective and economical implementation health officers of component cities and
of a health services program geared to municipalities; and
implementation of health-related projects (5) Be in the frontline of the delivery of
and activities; health services, particularly during and in
(2) Formulate measures for the the aftermath of man-made and natural
consideration of the sanggunian and disasters and calamities; and
provide technical assistance and support to (c) Exercise such other powers and perform
the governor or mayor, as the case may be, such other duties and functions as may be
in carrying out activities to ensure the prescribed by law or ordinance.
delivery of basic services and provision of ARTICLE IX
adequate facilities relative to health The Civil Registrar
services provided under Section 17 of this SECTION 479. Qualifications, Powers and
Code; Duties. – (a) No person shall be appointed
(3) Develop plans and strategies and upon civil registrar unless he is a citizen of the
approval thereof by the governor or mayor Philippines, a resident of the local
as the case may be, implement the same, government unit concerned, of good moral
particularly those which have to do with character, a holder of a college degree from
health programs and projects which the a recognized college or university, and a
governor or mayor, is empowered to first grade civil service eligible or its
implement and which the sanggunian is equivalent. He must have acquired
empowered to provide for under this Code; experience in civil registry work for at least
(4) In addition to the foregoing duties and five (5) years in the case of the city civil
functions, the health officer shall: registrar and three (3) years in the case of
(i) Formulate and implement policies, the municipal civil registrar.
plans, programs and projects to promote The appointment of a civil registrar shall
the health of the people in the local be mandatory for city and municipal
government unit concerned; governments.
(ii) Advise the governor or mayor, as the (b) The civil registrar shall be responsible
case may be, and the sanggunian on for the civil registration program in the
matters pertaining to health; local government unit concerned, pursuant
(iii) Execute and enforce all laws, to the Civil Registry Law, the Civil Code,
ordinances and regulations relating to and other pertinent laws, rules and
public health; regulations issued to implement them.
(iv) Recommend to the sanggunian, (c) The Civil Registrar shall take charge of
through the local health board, the passage the office of the civil registry and shall:
of such ordinances as he may deem (1) Develop plans and strategies and upon
necessary for the preservation of public approval thereof by the governor or mayor,
health; as the case may be, implement the same,
(v) Recommend the prosecution of any particularly those which have to do with
violation of sanitary laws, ordinances or civil registry programs and projects which
regulations; the mayor is empowered to implement and
(vi) Direct the sanitary inspection of all which the sanggunian is empowered to
business establishments selling food items provide for under this Code;
or providing accommodations such as (2) In addition to the foregoing duties and
hotels, motels, lodging houses, pension functions, the civil registrar shall:
houses, and the like, in accordance with (i) Accept all registrable documents and
the Sanitation Code; judicial decrees affecting the civil status of
(vii) Conduct health information campaigns persons;
and render health intelligence services;
(ii) File, keep and preserve in a secure place (b) The administrator shall take charge of
the books required by law; the office of the administrator and shall:
(iii) Transcribe and enter immediately upon (1) Develop plans and strategies and upon
receipt all registrable documents and approval thereof by the governor or mayor,
judicial decrees affecting the civil status of as the case may be, implement the same
persons in the appropriate civil registry particularly those which have to do with
books; the management and administration-
(iv) Transmit to the Office of the Civil related programs and projects which the
Registrar-General, within the prescribed governor or mayor is empowered to
period, duplicate copies of registered implement and which the sanggunian is
documents required by law; empowered to provide for under this Code;
(v) Issue certified transcripts or copies of (2) In addition to the foregoing duties and
any certificate or registered documents functions, the administrator shall:
upon payment of the prescribed fees to the (i) Assist in the coordination of the work of
treasurer; all the officials of the local government
(vi) Receive applications for the issuance of unit, under the supervision, direction, and
a marriage license and, after determining control of the governor or mayor, and for
that the requirements and supporting this purpose, he may convene the chiefs of
certificates and publication thereof for the offices and other officials of the local
prescribed period have been complied with, government unit;
issue the license upon payment of the (ii) Establish and maintain a sound
authorized fee to the treasurer; personnel program for the local
(vii) Coordinate with the National Statistics government unit designed to promote
Office in conducting educational campaigns career development and uphold the merit
for vital registration and assist in the principle in the local government service;
preparation of demographic and other (iii) Conduct a continuing organizational
statistics for the local government unit development of the local government unit
concerned; and with the end in view of instituting effective
(3) Exercise such other powers and perform administrative reforms;
such other duties and functions as may be (3) Be in the frontline of the delivery of
prescribed by law or ordinance. administrative support services,
ARTICLE X particularly those related to the situations
The Administrator during and in the aftermath of man-made
SECTION 480. Qualifications, Terms, and natural disasters and calamities;
Powers and Duties. – (a) No person shall be (4) Recommend to the sanggunian and
appointed administrator unless he is a advise the governor and mayor, as the case
citizen of the Philippines, a resident of the may be, on all other matters relative to the
local government unit concerned, of good management and administration of the
moral character, a holder of a college local government unit; and
degree preferably in public administration, (5) Exercise such other powers and perform
law, or any other related course from a such other duties and functions as may be
recognized college or university, and a first prescribed by law or by ordinance.
grade civil service eligible or its equivalent. ARTICLE XI
He must have acquired experience in The Legal Officer
management and administration work for SECTION 481. Qualifications, Terms,
at least five (5) years in the case of the Powers and Duties. – (a) No person shall be
provincial or city administrator, and three appointed legal officer unless he is a
(3) years in the case of the municipal citizen of the Philippines, a resident of the
administrator. local government concerned, of good moral
The term of administrator is coterminous character, and a member of the Philippine
with that of his appointing authority. Bar. He must have practiced his profession
The appointment of an administrator shall for at least five (5) years in the case of the
be mandatory for the provincial and city provincial and city legal officer, and three
governments, and optional for the (3) years in the case of the municipal legal
municipal government. officer.
The term of the legal officer shall be to the governor, mayor or sanggunian, as
coterminous with that of his appointing the case may be;
authority. (v) Investigate or cause to be investigated
The appointment of legal officer shall be any person, firm or corporation holding any
mandatory for the provincial and city franchise or exercising any public privilege
governments and optional for the for failure to comply with any term or
municipal government. condition in the grant of such franchise or
(b) The legal officer, the chief legal counsel privilege, and recommend appropriate
of the local government unit, shall take action to the governor, mayor or
charge of the office of legal services and sanggunian, as the case may be;
shall: (vi) When directed by the governor, mayor,
(1) Formulate measures for the or sanggunian, initiate and prosecute, in
consideration of the sanggunian and the interest of the local government unit
provide legal assistance and support to the concerned, any civil action on any bond,
governor or mayor, as the case may be, in lease or other contract upon any breach or
carrying out the delivery of basic services violation thereof; and
and provisions of adequate facilities as (vii) Review and submit recommendations
provided for under Section 17 of this Code; on ordinances approved and execute orders
(2) Develop plans and strategies and upon issued by component units;
approval thereof by the governor or mayor, (3) Recommend measures to the
as the case may be, implement the same, sanggunian and advise the governor or
particularly those which have to do with mayor, as the case may be, on all other
programs and projects related to legal matters related to upholding the rule of
services which the governor or mayor is law;
empowered to implement and which the (4) Be in the frontline of protecting human
sanggunian is empowered to provide for rights and prosecuting any violations
under this Code; thereof, particularly those which occur
(3) In addition to the foregoing duties and during and in the aftermath of man-made
functions, the legal officer shall: or natural disasters or calamities; and
(i) Represent the local government unit in (5) Exercise such other powers and perform
all civil actions and special proceedings such other duties and functions as may be
wherein the local government unit or any prescribed by law or ordinance.
official thereof, in his official capacity, is a ARTICLE XII
party: Provided, That, in actions or The Agriculturist
proceedings where a component city or SECTION 482. Qualifications, Powers and
municipality is a party adverse to the Duties. – (a) No person shall be appointed
provincial government or to another agriculturist unless he is a citizen of the
component city or municipality, a special Philippines, a resident of the local
legal officer may be employed to represent government unit concerned, of good moral
the adverse party; character, a holder of a college degree in
(ii) When required by the governor, mayor agriculture or any related course from a
or sanggunian, draft ordinances, contracts, recognized college or university and a first
bonds, leases and other instruments, grade civil service eligible or its equivalent.
involving any interest of the local He must have practiced his profession in
government unit and provide comments agriculture or acquired experience in a
and recommendations on any instrument related field for at least five (5) years in the
already drawn; case of the provincial or city agriculturist,
(iii) Render his opinion in writing on any and three (3) years in the case of the
question of law when requested to do so by municipal agriculturist.
the governor, mayor or sanggunian; The position of an agriculturist shall be
(iv) Investigate or cause to be investigated mandatory for the provincial government
any local official or employee for and optional for the city and municipal
administrative neglect or misconduct in governments.
office, and recommend appropriate action
(b) The agriculturist shall take charge of agriculture and aqua-culture which will
the office for agricultural services and improve the livelihood and living
shall: conditions of the inhabitants; and
(1) Formulate measures for the approval of (c) Exercise such other powers and perform
the sanggunian and provide technical such other duties and functions as may be
assistance and support to the governor or prescribed by law or ordinance;
mayor, as the case may be, in carrying out ARTICLE XIII
said measures to ensure the delivery of The Social Welfare and Development
basic services and provision of adequate Officer
facilities relative to agricultural services as SECTION 483. Qualifications, Powers and
provided for under Section 17 of this Code; Duties. – (a) No person shall be appointed
(2) Develop plans and strategies and upon social welfare and development officer
approval thereof by the governor or mayor, unless he is a citizen of the Philippines, a
as the case may be, implement the same, resident of the local government unit
particularly those which have to do with concerned, of good moral character, a duly
agricultural programs and projects which licensed social worker or a holder of a
the governor or mayor is empowered to college degree preferably in sociology or
implement and which the sanggunian is any other related course from a recognized
empowered to provide for under this Code; college or university, and a first grade civil
(3) In addition to the foregoing duties and service eligible or its equivalent. He must
functions, the agriculturist shall: have acquired experience in the practice of
(i) Ensure that maximum assistance and social work for at least five (5) years in the
access to resources in the production, case of the provincial or city social welfare
processing and marketing of agricultural and development officer, and three (3)
and aqua-cultural and marine products are years in the case of the municipal social
extended to farmers, fishermen and local welfare and development officer.
entrepreneurs; The appointment of a social welfare and
(ii) Conduct or cause to be conducted development officer is mandatory for
location-specific agricultural researches provincial and city governments, and
and assist in making available the optional for municipal government.
appropriate technology arising out of and (b) The social welfare and development
disseminating information on basic officer shall take charge of the office on
research on crops, prevention and control social welfare and development services
of plant diseases and pests, and other and shall:
agricultural matters which will maximize (1) Formulate measures for the approval of
productivity; the sanggunian and provide technical
(iii) Assist the governor or mayor, as the assistance and support to the governor or
case may be, in the establishment and mayor, as the case may be, in carrying out
extension services of demonstration farms measures to ensure the delivery of basic
or aqua-culture and marine products; services and provision of adequate facilities
(iv) Enforce rules and regulations relating relative to social welfare and development
to agriculture and aqua-culture; services as provided for under Section 17
(v) Coordinate with government agencies of this Code;
and non-governmental organizations which (2) Develop plans and strategies and upon
promote agricultural productivity through approval thereof by the governor or mayor,
appropriate technology compatible with as the case may be, implement the same
environmental integrity; particularly those which have to do with
(4) Be in the frontline of delivery of basic social welfare programs and projects which
agricultural services, particularly those the governor or mayor is empowered to
needed for the survival of the inhabitants implement and which the sanggunian is
during and in the aftermath of man-made empowered to provide for under this Code;
and natural disasters; (3) In addition to the foregoing duties, the
(5) Recommend to the sanggunian and social welfare and development officer
advise the governor or mayor, as the case shall:
may be, on all other matters related to
(i) Identify the basic needs of the needy, concerned, of good moral character, a
the disadvantaged and the impoverished holder of a college degree preferably in
and develop and implement appropriate environment, forestry, agriculture or any
measures to alleviate their problems and related course from a recognized college or
improve their living conditions; university, and a first grade civil service
(ii) Provide relief and appropriate crisis eligible or its equivalent. He must have
intervention for victims of abuse and acquired experience in environmental and
exploitation and recommend appropriate natural resources management,
measures to deter further abuse and conservation, and utilization, for at least
exploitation; five (5) years in the case of the provincial
(iii) Assist the governor or mayor, as the or city environment and natural resources
case may be, in implementing the barangay officer, and three (3) years in the case of
level program for the total development the municipal environment and natural
and protection of children up to six (6) resources officer.
years of age; The appointment of the environment and
(iv) Facilitate the implementation of natural resources officer is optional for
welfare programs for the disabled, elderly, provincial, city, and municipal
and victims of drug addiction, the governments.
rehabilitation of prisoners and parolees, (b) The environment and natural resources
the prevention of juvenile delinquency and management officer shall take charge of
such other activities which would eliminate the office on environment and natural
or minimize the ill-effects of poverty; resources and shall:
(v) Initiate and support youth welfare (1) Formulate measures for the
programs that will enhance the role of the consideration of the sanggunian and
youth in nation-building; provide technical assistance and support to
(vi) Coordinate with government agencies the governor or mayor, as the case may be,
and non-governmental organizations which in carrying out measures to ensure the
have for their purpose the promotion and delivery of basic services and provision of
the protection of all needy, disadvantaged, adequate facilities relative to environment
underprivileged or impoverished groups or and natural resources services as provided
individuals, particularly those identified to for under Section 17 of this Code;
be vulnerable and high-risk to exploitation, (2) Develop plans and strategies and upon
abuse and neglect; approval thereof, by the governor or mayor,
(4) Be in the frontline of service delivery, as the case may be, implement the same,
particularly those which have to do with particularly those which have to do with
immediate relief during and assistance in environment and natural resources
the aftermath of man-made and natural programs and projects which the governor
disaster and natural calamities; or mayor is empowered to implement and
(5) Recommend to the sanggunian and which the sanggunian is empowered to
advise the governor or mayor, as the case provide for under this Code;
may be, on all other matters related to (3) In addition to the foregoing duties and
social welfare and development services functions, the environment and natural
which will improve the livelihood and living resources officer shall:
conditions of the inhabitants; and (i) Establish, maintain, protect and
(c) Exercise such other powers and perform preserve communal forests, watersheds,
such other duties and functions as may be tree parks, mangroves, greenbelts,
prescribed by law or ordinance. commercial forests and similar forest
ARTICLE XIV projects  like industrial tree farms and
The Environment and Natural Resources agro-forestry projects;
Officer (ii) Provide extension services to
SECTION 484. Qualifications, Powers and beneficiaries of forest development projects
Duties. – (a) No person shall be appointed and technical, financial and infrastructure
environment and natural resources officer assistance;
unless he is a citizen of the Philippines, a
resident of the local government unit
(iii) Manage and maintain seed banks and (1) Formulate measures for the
produce seedlings for forests and tree consideration of the sanggunian and
parks; provide technical assistance and support to
(iv) Provide extension services to the governor or mayor, as the case may be,
beneficiaries of forest development projects in carrying out measures to ensure the
and render assistance for natural delivery of basic services and provision of
resources-related conservation and adequate facilities relative to architectural
utilization activities consistent with planning and design as provided for under
ecological balance; Section 17 of this Code;
(v) Promote the small-scale mining and (2) Develop plans and strategies and upon
utilization of mineral resources, approval thereof by the governor or mayor,
particularly mining of gold; as the case may be, implement the same,
(vi) Coordinate with government agencies particularly those which have to do with
and non-governmental organizations in the architectural planning and design programs
implementation of measures to prevent and and projects which the governor or mayor
control land, air and water pollution with is empowered to implement and which the
the assistance of the Department of sanggunian is empowered to provide for
Environment and Natural Resources; under this Code;
(4) Be in the frontline of the delivery of (3) In addition to the foregoing duties and
services concerning the environment and functions, the architect shall: cdasia
natural resources, particularly in the (i) Prepare and recommend for
renewal and rehabilitation of the consideration of the sanggunian the
environment during and in the aftermath architectural plan and design for the local
of man-made and natural disasters and government unit or a part thereof,
calamities; including the renewal of slums and blighted
(5) Recommend to the sanggunian and areas, land reclamation activities, the
advise the governor or mayor, as the case greening of land, and appropriate planning
may be, on all matters relative to the of marine and foreshore areas;
protection, conservation maximum (ii) Review and recommend for appropriate
utilization, application of appropriate action of the sanggunian, governor or
technology and other matters related to mayor, as the case may be, the
the environment and natural resources; architectural plans and design submitted
and by governmental and non-governmental
(c) Exercise such other powers and perform entities or individuals, particularly those
such other duties and functions as may be for undeveloped, underdeveloped, and
prescribed by law or ordinance. poorly-designed areas; and
ARTICLE XV (iii) Coordinate with government and non-
The Architect government entities and individuals
SECTION 485. Qualifications, Powers and involved in the aesthetics and the
Duties. – (a) No person shall be appointed maximum utilization of the land and water
architect unless he is a citizen of the within the jurisdiction of the local
Philippines, a resident of the local government unit, compatible with
government unit concerned, of good moral environmental integrity and ecological
character, and a duly licensed architect. He balance;
must have practiced his profession for at (4) Be in the frontline of the delivery of
least five (5) years in the case of the services involving architectural planning
provincial or city architect, and three (3) and design, particularly those related to
years in the case of the municipal the redesigning of spatial distribution of
architect. basic facilities and physical structures
The appointment of the architect is during and in the aftermath of man-made
optional for provincial, city and municipal and natural disasters and calamities;
governments. (5) Recommend to the sanggunian and
(b) The Architect shall take charge of the advise the governor or mayor, as the case
office on architectural planning and design may be, on all other matters relative to the
and shall: architectural planning and design as it
relates to the total socio-economic (i) Provide relevant, adequate, and timely
development of the local government unit; information to the local government unit
and and its residents;
(c) Exercise such other powers and perform (ii) Furnish information and data on local
such other duties and functions as may be government units to government agencies
prescribed by law or ordinance. or offices as may be required by law or
ARTICLE XVI ordinance; and non-governmental
The Information Officer organizations to be furnished to said
SECTION 486. Qualifications, Powers and agencies and organizations;
Duties. – (a) No person shall be appointed (iii) Maintain effective liaison with the
information officer unless he is a citizen of various sectors of the community on
the Philippines, a resident of the local matters and issues that affect the
government unit concerned, of good moral livelihood and the quality of life of the
character, a holder of a college degree inhabitants and encourage support for
preferably in journalism, mass programs of the local and national
communications or any related course from government;
a recognized college or university, and a (4) Be in the frontline in providing
first grade civil service eligible or its information during and in the aftermath of
equivalent. He must have experience in man-made and natural disasters and
writing articles and research papers, or in calamities, with special attention to the
writing for print, television or broadcast victims thereof, to help minimize injuries
media for at least three (3) years in the and casualties during and after the
case of the provincial or city information emergency, and to accelerate relief and
officer, and one (1) year in the case of rehabilitation;
municipal information officer. (5) Recommend to the sanggunian and
The appointment of the information officer advise the governor or mayor, as the case
is optional for the provincial, city and may be, on all matters relative to public
municipal governments. information and research data as it relates
The term of the information officer is to the total socio-economic development of
coterminous with that of his appointing the local government unit; and
authority. (c) Exercise such other powers and perform
(b) The information officer shall take such other duties and functions as may be
charge of the office on public information prescribed by law or ordinance.
and shall: ARTICLE XVII
(1) Formulate measures for the The Cooperatives Officer
consideration of the sanggunian and SECTION 487. Qualifications, Powers and
provide technical assistance and support to Duties. – (a) No person shall be appointed
the governor or mayor, as the case may be, cooperatives officer unless he is a citizen
in providing the information and research of the Philippines, a resident of the local
data required for the delivery of basic government unit concerned, of good moral
services and provision of adequate facilities character, a holder of a college degree
so that the public becomes aware of said preferably in business administration with
services and may fully avail of the same; special training in cooperatives or any
(2) Develop plans and strategies and, upon related course from a recognized college or
approval thereof by the governor or mayor, university, and a first grade civil service
as the case may be, implement the same, eligible or its equivalent. He must have
particularly those which have to do with experience in cooperatives organization
public information and research data to and management for at least five (5) years
support programs and projects which the in the case of provincial or city
governor or mayor is empowered to cooperatives officer, and three (3) years in
implement and which the sanggunian is the case of municipal cooperatives officer.
empowered to provide for under this Code; The appointment of the cooperatives
(3) In addition to the foregoing duties and officer is optional for the provincial and
functions, the information officer shall: city governments.
(b) The cooperatives officer shall take SECTION 488. Qualifications, Powers and
charge of the office for the development of Duties. – (a) No person shall be appointed
cooperatives and shall: population officer unless he is a citizen of
(1) Formulate measures for the the Philippines, a resident of the local
consideration of the sanggunian, and government unit concerned, of good moral
provide technical assistance and support to character, a holder of a college degree with
the governor or mayor, as the case may be, specialized training in population
in carrying out measures to ensure the development from a recognized college or
delivery of basic services and provision of university, and a first grade civil service
facilities through the development of eligible or its equivalent. He must have
cooperatives, and in providing access to experience in the implementation of
such services and facilities; programs on population development or
(2) Develop plans and strategies and, upon responsible parenthood for at least five (5)
approval thereof by the governor or mayor, years in the case of the provincial or city
as the case may be, implement the same, population officer, and three (3) years in
particularly those which have to do with the case of the municipal population
the integration of cooperatives principles officer.
and methods in programs and projects The appointment of a population officer
which the governor or mayor is empowered shall be optional in the local government
to implement and which the sanggunian is unit: Provided, however, That provinces
empowered to provide for under this Code; and cities which have existing population
(3) In addition to the foregoing duties and offices shall continue to maintain such
functions, the cooperatives officer shall: offices for a period of five (5) years from
(i) Assist in the organization of the date of effectivity of this Code, after
cooperatives; which said offices shall become optional.
(ii) Provide technical and other forms of (b) The population officer shall take charge
assistance to existing cooperatives to of the office on population development
enhance their viability as an economic and shall:
enterprise and social organization; (1) Formulate measures for the
(iii) Assist cooperatives in establishing consideration of the sanggunian and
linkages with government agencies and provide technical assistance and support to
non-government organizations involved in the governor or mayor, as the case may be,
the promotion and integration of the in carrying out measures to ensure the
concept of cooperatives in the livelihood of delivery of basic services and provision of
the people and other community activities; adequate facilities relative to the
(4) Be in the frontline of cooperatives integration of the population development
organization, rehabilitation or viability- principles and in providing access to said
enhancement, particularly during and in services and facilities;
the aftermath of man-made and natural (2) Develop plans and strategies and upon
calamities and disasters, to aid in their approval thereof by the governor or mayor,
survival and, if necessary subsequent as the case may be, implement the same,
rehabilitation; particularly those which have to do with
(5) Recommend to the sanggunian, and the integration of population development
advise the governor or mayor, as the case principles and methods in programs and
may be, on all matters relative to projects which the governor or mayor is
cooperatives development and viability- empowered to implement and which the
enhancement which will improve the sanggunian is empowered to provide for
livelihood and quality of life of the under this Code;
inhabitants; and (3) In addition to the foregoing duties and
(c) Exercise such other powers and perform functions, the population officer shall:
such other duties and functions as may be (i) Assist the governor or mayor, as the case
prescribed by law or ordinance. may be, in the implementation of the
ARTICLE XVIII Constitutional provisions relative to
The Population Officer population development and the promotion
of responsible parenthood;
(ii) Establish and maintain an updated data (iii) Regulate and inspect poultry, milk and
bank for program operations, development dairy products for public consumption;
planning and an educational program to (iv) Enforce all laws and regulations for the
ensure the people’s participation in and prevention of cruelty to animals; and
understanding of population development; (v) Take the necessary measures to
(iii) Implement appropriate training eradicate, prevent or cure all forms of
programs responsive to the cultural animal diseases;
heritage of the inhabitants; and (4) Be in the frontline of veterinary related
(c) Exercise such other powers and perform activities, such as in the outbreak of
such other duties and functions as may be highly-contagious and deadly diseases, and
prescribed by law or ordinance. in situations resulting in the depletion of
ARTICLE XIX animals for work and human consumption,
The Veterinarian particularly those arising from and in the
SECTION 489. Qualifications, Powers and aftermath of man-made and natural
Duties. – (a) No person shall be appointed disasters and calamities;
veterinarian unless he is a citizen of the (5) Recommend to the sanggunian and
Philippines, a resident of the local advise the governor or mayor, as the case
government unit concerned, of good moral may be, on all other matters relative to
character, a licensed doctor of veterinary veterinary services which will increase the
medicine. He must have practiced his number and improve the quality of
profession for at least three (3) years in the livestock, poultry and other domestic
case of provincial or city veterinarian and animals used for work or human
at least one (1) year in the case of the consumption; and
municipal veterinarian. (c) Exercise such other powers and perform
The appointment of a veterinarian officer is such other duties and functions as may be
mandatory for the provincial and city prescribed by law or ordinance.
governments. ARTICLE XX
(b) The veterinarian shall take charge of the The General Services Officer
office for veterinary services and shall: SECTION 490. Qualifications, Powers and
(1) Formulate measures for the Duties. – (a) No person shall be appointed
consideration of the sanggunian, and general services officer unless he is a
provide technical assistance and support to citizen of the Philippines, a resident of the
the governor or mayor, as the case may be, local government unit concerned, of good
in carrying out measures to ensure the moral character, a holder of a college
delivery of basic services and provision of degree on public administration, business
adequate facilities pursuant to Section 17 administration and management from a
of this Code; recognized college or university, and a first
(2) Develop plans and strategies and upon grade civil service eligible or its equivalent.
approval thereof by the governor or mayor, He must have acquired experience in
as the case may be, implement the same, general services, including management of
particularly those which have to do with supply, property, solid waste disposal, and
veterinary-related activities which the general sanitation for at least five (5) years
governor or mayor is empowered to in the case of the provincial or city general
implement and which the sanggunian is services officer, and at least three (3) years
empowered to provide for under this Code; in the case of the municipal general
(3) In addition to the foregoing duties and services officer.
functions, the veterinarian shall: The appointment of a general services
(i) Advise the governor or the mayor, as the officer shall be mandatory for the
case may be, on all matters pertaining to provincial and city governments,
the slaughter of animals for human (b) The general services officer shall take
consumption and the regulation of charge of the office on general services and
slaughterhouses; shall:
(ii) Regulate the keeping of domestic (1) Formulate measures for the
animals; consideration of the sanggunian and
provide technical assistance and support to
the governor or mayor, as the case may be, (viii) Perform all other functions pertaining
in carrying out measures to ensure the to supply and property management
delivery of basic services and provision of heretofore performed by the local
adequate facilities pursuant to Section 17 government treasurer; and enforce policies
of this Code and which require general on records creation, maintenance, and
services expertise and technical support disposal;
services; (4) Be in the frontline of general services
(2) Develop plans and strategies and upon related activities, such as the possible or
approval thereof by the governor or mayor, imminent destruction or damage to
as the case may be, implement the same, records, supplies, properties, and
particularly those which have to do with structures and the orderly and sanitary
general services supportive of the welfare clearing up of waste materials or debris,
of the inhabitants which the governor or particularly during and in the aftermath of
mayor is empowered to implement and man-made and natural disasters and
which the sanggunian is empowered to calamities;
provide for under this Code; (5) Recommend to the sanggunian and
(3) In addition to the foregoing duties and advise the governor or mayor, as the case
functions, the general services officer shall: may be, on all other matters relative to
(i) Take custody of and be accountable for general services; and
all properties, real or personal, owned by (c) Exercise such other powers and perform
the local government unit and those such other duties and functions as may be
granted to it in the form of donation, prescribed by law or ordinance.
reparation, assistance and counterpart of TITLE VI
joint projects;
(ii) With the approval of the governor or
mayor, as the case may be, assign building
or land space to local officials or other
public officials, who by law, are entitled to
such space;
(iii) Recommend to the governor or mayor,
as the case may be, the reasonable rental
rates for local government properties,
whether real or personal, which will be
leased to public or private entities by the
local government;
(iv) Recommend to the governor or mayor,
as the case may be, reasonable rental rates
of private properties which may be leased
for the official use of the local government
unit;
(v) Maintain and supervise janitorial,
security, landscaping and other related
services in all local government public
buildings and other real property, whether
owned or leased by the local government
unit;
(vi) Collate and disseminate information
regarding prices, shipping and other costs
of supplies and other items commonly used
by the local government unit;
(vii) Perform archival and record
management with respect to records of
offices and departments of the local
government unit; and