ADMINISTRATIVE ORDER NO.

270
ADMINISTRATIVE ORDER NO. 270 - PRESCRIBING THE
IMPLEMENTING RULES AND REGULATIONS OF THE
LOCAL GOVERNMENT CODE OF 1991

WHEREAS, Section 25, Article II of the Constitution mandates that the State shall ensure the autonomy of
local
governments;
WHEREAS, pursuant to this declared policy, Republic Act No. 7160, otherwise known as the Local
Government Code of 1991, affirms, among others, that the territorial and political subdivisions of the State
shall enjoy genuine and meaningful local autonomy to enable them to attain their fullest development as selfreliant communities and make them more effective partners in the attainment of national goals;
WHEREAS, Section 533 of the Local Government Code of 1991 requires the President to convene an
Oversight Committee for the purpose of formulating and issuing the appropriate rules and regulations
necessary for the efficient and effective implementation of all the provisions of the said Code; and
WHEREAS, the Oversight Committee, after due deliberations and consultations with all the concerned sectors
of society and consideration of the operative principles of local autonomy as provided in the Local
Government Code of 1991, has completed the formulation of the implementing rules and regulations;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested
in
me
by
law,
do
hereby
order:
Section 1. The attached "Rules and Regulations Implementing the Local Government Code of 1991," which
shall form an integral part of this Administrative Order, are hereby approved and adopted for the efficient and
effective
implementation
of
the
said
Code.
SECTION 2. This Administrative Order shall take effect upon its publication in a newspaper of general
circulation.
DONE in the City of Manila, this 21st day of February, in the year of Our Lord, nineteen hundred and ninety-two.
RULES AND REGULATIONS IMPLEMENTING THE LOCAL GOVERNMENT CODE OF 1991
RULE I
Policy and Application

ARTICLE 1. Title. These Rules shall be known and cited as the Rules and Regulations Implementing the
Local
Government
Code
of
1991.
ARTICLE 2. Purpose. These Rules are promulgated to prescribe the procedures and guidelines for the
implementation of the Local Government Code of 1991 in order to facilitate compliance therewith and achieve
the
objectives
thereof.
ARTICLE 3. Declaration of Policy. (a) It is hereby declared the policy of the State that the territorial and
political subdivisions of the State shall enjoy genuine and meaningful local autonomy to enable them to attain
their fullest development as self-reliant communities and make them more effective partners in the attainment
of national goals. Toward this end, the State shall provide for a more responsive and accountable local
government structure instituted through a system of decentralization whereby local government units (LGUs)
shall be given more powers, authority, responsibilities, and resources. The process of decentralization shall
proceed
from
the
National
Government
to
the
LGUs.
(b) It is also the policy of the State to ensure the accountability of LGUs through the institution of effective
mechanisms
of
recall,
initiative
and
referendum.
(c) It is likewise the policy of the State to require all national government agencies and offices (NGOs) to
conduct periodic consultations with appropriate LGUs, nongovernmental organizations (NGOs) and people's
organizations, and other concerned sectors of the community before any project or program is implemented in
their
respective
jurisdictions.
(d) Every LGU shall exercise the powers expressly granted, those necessarily implied therefrom, as well as
powers necessary, appropriate, or incidental for its efficient and effective governance, and those which are
essential to the promotion of the general welfare. Within their respective territorial jurisdictions, LGUs shall
ensure and support, among other things, the preservation and enrichment of culture, promote health and
safety, enhance the right of the people to a balanced ecology, encourage and support the development of
appropriate and self-reliant scientific and technological capabilities, improve public morals, enhance economic
prosperity and social justice, promote full employment among their residents, maintain peace and order, and
preserve
the
comfort
and
convenience
of
their
inhabitants.
ARTICLE

4.

Scope

of

Application.

These

Rules

shall

apply

to

the

following:

(a) All provinces, cities, municipalities, barangays, and such other political subdivisions as may be created by
law;
(b) All LGUs in the Autonomous Region in Muslim Mindanao and other autonomous political units as may be
created by law, until such time that they shall have enacted their own local government code; and
(c) NGAs and other government instrumentalities including government-owned and -controlled corporations
(GOCCs)
to
the
extent
provided
in
the
Code.
ARTICLE 5. Rules of Interpretation. In the interpretation of the provisions of the Code, the following rules
shall
apply:

(a) The general welfare provisions, any provision on the powers of an LGU, and any question regarding the
devolution of powers shall be liberally interpreted and resolved in their favor of the LGU.
(b) Any fair and reasonable doubt on the powers of LGUs shall be liberally interpreted and resolved in their
favor; and in cases involving lower and higher level LGUs, in favor of the lower level LGU.
(c) Rights and obligations existing on the date of effectivity of the Code and arising out of contracts or any
other source of prestation involving an LGU shall be governed by the original terms and conditions of said
contracts
or
the
law
in
force
at
the
time
such
rights
were
vested.
(d) In the resolution of controversies arising under the Code where no legal provision or jurisprudence applies,
the customs and traditions in the place where the controversies take place may be resorted to.
(e) In case of doubt, any tax ordinance or revenue measure shall be construed strictly against the LGU
enacting it, and liberally in favor of the taxpayer. Any tax exemption, incentive, or relief granted by any LGU
pursuant to the provisions of the Code shall be construed strictly against the person claiming it.
RULE II
Creation, Conversion, Division, Merger, Abolition,
and Alteration of Boundaries of Local Government Units
ARTICLE 6. Common Provisions. (a) Authority to create LGUs An LGU may be created, converted,
divided, merged, abolished, or its boundaries substantially altered either by Act of Congress, in the case of a
province, city, municipality, or any other political subdivision, or by ordinance passed by the sangguniang
panlalawigan or sangguniang panlungsod concerned, in the case of a barangay located within its territorial
jurisdiction,
subject
to
such
limitations
and
requirements
prescribed
in
this
Rule.
Notwithstanding the population requirement, the Congress may create barangays in indigenous cultural
communities to enhance the delivery of basic services in said areas and in the municipalities within the
Metropolitan
Manila
Area
(MMA).
(b) Creation or conversion
(1) The creation of an LGU or its conversion from one level to another shall be based on the following
verifiable indicators of viability and projected capacity to provide services:
(i) Income which must be sufficient, based on acceptable standards, to provide for all essential government
facilities and services and special functions commensurate to the size of its population, as expected of the LGU.
The income shall be based on 1991 constant prices, as determined by the Department of Finance (DOF).
(ii) Population which shall be the total number of inhabitants within the territorial jurisdiction of the LGU.
(iii) Land area which must be contiguous, unless it comprises two (2) or more islands or is separated by an
LGU independent of the others; properly identified by metes and bounds with technical descriptions; and
sufficient to provide for such basic services and facilities to meet the requirements of its populace.
(2)

Compliance

with

the

foregoing

indicators

shall

be

attested

by:

(i) The Secretary of Finance as to the income requirement in the case of provinces and cities, and the provincial
treasurer
in
the
case
of
municipalities;
(ii) The Administrator of the National Statistics Office (NSO) as to the population requirement; and
(iii) The Director of the Lands Management Bureau (LMB) of the Department of Environment and Natural
Resources (DENR) as to the land area requirement.
(c) Division or merger Division or merger of existing LGUs shall comply with the same requirements for
their creation. Such division or merger shall not reduce the income, population, or land area of the original
LGU or LGUs to less than the prescribed minimum requirements and that their income classification shall not
fall below their current income classification prior to the division or merger.
(d) Abolition An LGU may be abolished when its income, population, or land area has been irreversibly
reduced during the immediately preceding three (3) consecutive years to less than the requirements for its
creation, as certified by DOF, in the case of income; by NSO, in the case of population; and by LMB, in the
case of land area. The law or ordinance abolishing an LGU shall specify the province, city, municipality, or
barangay
to
which
an
LGU
sought
to
be
abolished
will
be
merged
with.
(e) Updating of income classification The income classification of LGUs shall be updated by DOF within six
(6) months from the effectivity of the Code to reflect the changes in the financial position resulting from the
increased
revenues.
(f) Plebiscite (1) No creation, conversion, division, merger, abolition, or substantial alteration of boundaries
of LGUs shall take effect unless approved by a majority of the votes cast in a plebiscite called for the purpose
in the LGU or LGUs directly affected. The plebiscite shall be conducted by the Commission on Elections
(COMELEC) within one hundred twenty (120) days from the effectivity of the law or ordinance prescribing
such
action,
unless
said
law
or
ordinance
fixes
another
date.
(2) The COMELEC shall conduct an intensive information campaign in the LGUs concerned at least twenty
(20) days prior to the plebiscite, in the case of provinces, cities, and municipalities; and ten (10) days, in the
case of barangays. The COMELEC may seek the assistance of national and local government officials, mass
media,
NGOs,
and
other
interested
parties.
(g) Beginning of corporate existence When a new LGU is created, its corporate existence shall commence
upon the election and qualification of its chief executive and a majority of the members of its sanggunian,
unless some other time is fixed therefore by the law or ordinance creating it.
ARTICLE 7. Selection and Transfer of Local Government Site, Offices, and Facilities. (a) The seat of
government of an LGU from where governmental and corporate services are delivered shall be at the site
designated
by
the
law
or
ordinance
creating
the
LGU.
(b)

In

the

case

of

province,

the

site

shall

be

within

its

capital

town

or

city.

(c) In selecting the site, factors relating to geographical centrality, accessibility, availability of transportation

and communication facilities, drainage and sanitation, development and economic progress, and other relevant
considerations
shall
be
taken
into
account.
(d) When subsequent to the establishment of the government site conditions and developments in the LGU
have significantly changed, the sanggunian may, after public hearing and by a vote of two-thirds (2/3) of all its
members, transfer the government site to a location best suited to present needs and anticipated future
development and progress. No transfer shall be made outside the territorial boundaries of the LGU concerned.
The old site, together with the improvements thereon, may be disposed of by sale or lease or converted to such
other use as the sanggunian may deem beneficial to the LGU and its inhabitants.
(e) Local government offices and facilities shall not be transferred, relocated, or converted to other uses unless
public hearings are first conducted for the purpose and the concurrence of a majority of all the members of the
sanggunian
is
obtained.
ARTICLE 8. Government Centers. (a) Every province, city, and municipality shall endeavor to establish a
government center where offices, agencies, or branches of the National Government, LGUs or GOCCs may, as
far
as
practicable,
be
located.
(b) The LGU shall take into account its existing facilities and those of NGAs in designating such government
center.
(c) Construction of buildings in the government center shall conform with the overall physical and
architectural plans and motif of the government center, as approved by the sanggunian concerned.
(d) The National Government, LGU, or GOCC concerned shall bear the expenses for the construction of its
own
buildings
and
facilities
in
the
government
center.
ARTICLE 9. Provinces. (a) Requisites for creation A province shall not be created unless the following
requisites
on
income
and
either
population
or
land
area
are
present:
(1) Income An average annual income of not less than Twenty Million Pesos (P20,000,000.00) for the
immediately preceding two (2) consecutive years based on 1991 constant prices, as certified by DOF. The
average annual income shall include the income accruing to the general fund, exclusive of special funds, special
accounts,
transfers,
and
nonrecurring
income;
and
(2) Population or land area Population which shall not be less than two hundred fifty thousand (250,000)
inhabitants, as certified by NSO; or land area which must be contiguous with an area of at least two thousand
(2,000) square kilometers, as certified by LMB. The territory need not be contiguous if it comprises two (2) or
more islands or is separated by a chartered city or cities which do not contribute to the income of the province.
The land area requirement shall not apply where the proposed province is composed of one (1) or more
islands. The territorial jurisdiction of a province sought to be created shall be properly identified by metes and
bounds.
The creation of a new province shall not reduce the land area, population, and income of the original LGU or
LGUs at the time of said creation to less than the prescribed minimum requirements. All expenses incidental to
the
creation
shall
be
borne
by
the
petitioners.

(b)

Procedure

for

creation

(1) Petition Interested municipalities or component shall submit the petition, in the form of a resolution, of
their respective sanggunians requesting the creation of a new city to the Congress, and furnish copies thereof
to
the
sangguniang
panlalawigan
of
the
original
province
or
provinces.
(2) Comments on petition The sangguniang panlalawigan of the original province or provinces shall submit
to the Congress its comments and recommendations on the petition for creation of the proposed province.
(3) Documents to support petition The following documents shall be attached to the petition for creation:
(i) Certification by DOF that the average annual income of the proposed province meets the minimum income
requirement and that its creation will not reduce the income based on 1991 constant prices, of the original
LGU
or
LGUs
to
less
than
the
prescribed
minimum;
(ii) Certification by the NSO as to population of the proposed province and that its creation will not reduce the
population
of
the
original
LGUs
to
less
than
the
prescribed
minimum;
(iii) Certification by LMB that the land area of the proposed province meets the minimum land area
requirement and that its creation will not reduce the land area of the original LGU or LGUs to less than the
prescribed
minimum;
(iv) Map of the original LGU or LGUs, indicating the areas to be created into a province. The map shall be
prepared by the provincial, city, or district engineer and shall clearly indicate the road network within the
proposed
province;
and
(v) Such other information that the petitioners may deem relevant for consideration in the petition.
All costs incurred in the production of the required documents shall be borne by the petitioning LGUs.
(4) Plebiscite
(i) Upon the effectivity of the law creating a province, the COMELEC shall conduct a plebiscite in the LGU or
LGUs directly affected within one hundred twenty (120) days or within the period specified in the law.
(ii) The COMELEC shall conduct an intensive information campaign in the LGUs concerned at least twenty
(20) days prior to the plebiscite. For this purpose, the COMELEC may seek the assistance of national and local
government officials, mass media, NGOs, and other interested parties.
(c) Beginning of corporate existence When a province is created, its corporate existence shall commence
upon the election and qualification of its governor and a majority of the members of its sanggunian unless
some
other
time
is
fixed
therefore
by
the
law
creating
it.
ARTICLE 10. Status of Existing Subprovinces. (a) The existing subprovinces of Biliran in the province of
Leyte, and Guimaras in the province of Iloilo, shall automatically be converted into regular provinces upon
approval by a majority of the votes cast in a plebiscite to be held in the said subprovince and the original

provinces directly affected which shall be conducted by the COMELEC simultaneously with the national
elections
on
May
11,
1992.
(b) The new legislative districts created as a result of such conversion shall continue to be represented in the
Congress by the duly elected representatives of the original districts out of which the new provinces or districts
were created until their own representatives shall have been elected in the next regular congressional elections
and
have
qualified.
(c) The incumbent elective officials of the subprovinces converted into regular provinces shall continue to hold
office until June 30, 1992. Any vacancy occurring in the offices occupied by said incumbents, or resulting from
expiration of their terms of office in case of a negative vote in the plebiscite results, shall be filled by
appointment
by
the
President.
(d) The appointees shall hold office until their successors shall have been elected in the regular local elections
following
the
plebiscite
and
have
qualified.
(e) After effectivity of such conversion, the President shall appoint the governor, vice governor and other
members of the sangguniang panlalawigan if none has yet been appointed, all of whom shall likewise hold
office until their successors shall have been elected in the next regular local elections and have qualified.
(f) All qualified appointive officials and employees in the career service of the subprovinces at the time of their
conversion into regular provinces shall continue in office in accordance with civil service law, rules and
regulations.
ARTICLE 11. Cities. (a) Requisites for creation A city shall not be created unless the following requisites
on
income
and
either
population
or
land
area
are
present:
(1) Income An average annual income of not less than Twenty Million Pesos (P20,000,000.00), for the
immediately preceding two (2) consecutive years based on 1991 constant prices, as certified by DOF. The
average annual income shall include the income accruing to the general fund, exclusive of special funds, special
accounts,
transfers,
and
nonrecurring
income;
and
(2) Population or land area Population which shall not be less than one hundred fifty thousand (150,000)
inhabitants, as certified by the NSO; or land area which must be contiguous with an area of at least one
hundred (100) square kilometers, as certified by LMB. The territory need not be contiguous if it comprises two
(2) or more islands or is separated by a chartered city or cities which do not contribute to the income of the
province. The land area requirement shall not apply where the proposed city is composed of one (1) or more
islands. The territorial jurisdiction of a city sought to be created shall be properly identified by metes and
bounds.
The creation of a new city shall not reduce the land area, population, and income of the original LGU or LGUs
at the time of said creation to less than the prescribed minimum requirements. All expenses incidental to the
creation
shall
be
borne
by
the
petitioners.
(b) Procedure for creation

(1) Petition Interested municipalities or barangays shall submit the petition, in the form of a resolution, of
their respective sanggunians requesting the creation of a new city to the Congress, and furnish copies thereof
to the sangguniang panlalawigan or sangguniang panlungsod of the LGUs concerned.
(2) Comments on petition The sangguniang panlalawigan or sangguniang panlungsod shall submit to the
Congress its comments and recommendations on the petition for creation of the city.
(3) Documents to support petition The following documents shall be attached to the petition for creation:
(i) Certification by DOF that the average annual income of the proposed city meets the minimum income
requirement and that its creation will not reduce the income based on 1991 constant prices, of the original
LGU
or
LGUs
to
less
than
the
prescribed
minimum;
(ii) Certification by NSO as to population of the proposed city and that its creation will not reduce the
population
of
the
original
LGUs
to
less
than
the
prescribed
minimum;
(iii) Certification by LMB that the land area of the proposed city meets the minimum land area requirement
and that its creation will not reduce the land area of the original LGU or LGUs to less than the prescribed
minimum;
(iv) Map of the original LGU or LGUs, indicating the areas to be created into a city. The map shall be
prepared by the provincial, city, or district engineer as the case may be and shall clearly indicate the road
network
within
the
proposed
city;
(v) Certification by LMB that disposable and alienable public lands are available in the area to be created into
a city sufficient to meet its growing population and the following purposes:
Government center site of not less than ten thousand (10,000) square meters which shall include the city hall
site
and
those
of
other
government
buildings;
Market site of not less than ten thousand (10,000) square meters, located out of view of the city hall, schools,
plaza, and cemetery and near but not along a provincial road, railroad station, navigable river, or sea;
Plaza or park of not less than ten thousand (10,000) square meters located preferably in front of the city hall;
School site of not less than ten thousand (10,000) square meters, in well-drained location that conforms with
the
requirements
prescribed
by
public
school
authorities;
and
Cemetery site of not less than five thousand (5,000) square meters for every ten thousand (10,000) population
which conforms with the requirements prescribed by the health authorities;
(vi) Number and nature of existing and commercial establishments in the territory of the proposed city as
certified
by
NSO;
(vii) Sources of potable water supply for the inhabitants as certified by the Local Water Utilities
Administration (LWEI) or the Metropolitan Waterworks and Sewerage System (MWSS), as the case may be;

(viii) Facilities, plans, and site for sewerage, garbage and waste disposal as certified by the local engineer; and
(ix) Such other information that the petitioners may deem relevant for consideration in the petition.
All costs incurred in the production of the required documents shall be borne by the petitioning LGUs.
(4) Plebiscite
(i) Upon the effectivity of the law creating a city, the COMELEC shall conduct a plebiscite in the LGUs
directly affected within one hundred twenty (120) days or within the period specified in the law.
(ii) The COMELEC shall conduct an intensive information campaign in the LGUs concerned at least twenty
(20) days prior to the plebiscite. For this purpose, the COMELEC may seek the assistance of national and local
government officials, mass media, NGOs, and other interested parties.
(c) Beginning of corporate existence. When a city is created, its corporate existence shall commence upon
the election and qualification of its mayor and a majority of the members of its sanggunian, unless some other
time
is
fixed
therefore
by
the
law
creating
it.
ARTICLE 12. Conversion of a Component City Into a Highly-Urbanized City. (a) Requisites for conversion
A component city shall not be converted into a highly-urbanized city unless the following requisites are
present:
(1) Income latest annual income of not less than Fifty Million Pesos (P50,000,000.00) based on 1991 constant
prices, as certified by the city treasurer. The annual income shall include the income accruing to the general
fund,
exclusive
of
special
funds,
transfers,
and
non-recurring
income;
and
(2) Population which shall not be less than two hundred thousand (200,000) inhabitants, as certified by
NSO.
(b) Procedure for conversion
(1) Resolution The interested component city shall submit to the Office of the President a resolution of its
sanggunian adopted by a majority of all its members in a meeting duly called for the purpose, and approved
and endorsed by the city mayor. Said resolution shall be accompanied by certifications as to income and
population.
(2) Declaration of conversion Within thirty (30) days from receipt of such resolution, the President shall,
after verifying that the income and population requirements have been met, declare the component city as
highly-urbanized.
(3) Plebiscite Within one hundred twenty (120) days from the declaration of the President or as specified in
the declaration, the COMELEC shall conduct a plebiscite in the city proposed to be converted. Such plebiscite
shall be preceded by a comprehensive information campaign to be conducted by the Comelec with the
assistance of national and local government officials, media, NGOs, and other interested parties.
(c)

Effect

of

Conversion

The conversion of a component city into a highly-urbanized city shall make it independent of the province
where
it
is
geographically
located.
ARTICLE 13. Municipalities. (a) Requisites for Creation A municipality shall not be created unless the
following requisites are present:
(i) Income An average annual income of not less than Two Million Five Hundred Thousand Pesos
(P2,500,000.00), for the immediately preceding two (2) consecutive years based on 1991 constant prices, as
certified by the provincial treasurer. The average annual income shall include the income accruing to the
general fund, exclusive of special funds, special accounts, transfers, and nonrecurring income;
(ii) Population which shall not be less than twenty five thousand (25,000) inhabitants, as certified by NSO;
and
(iii) Land area which must be contiguous with an area of at least fifty (50) square kilometers, as certified by
LMB. The territory need not be contiguous if it comprises two (2) or more islands. The requirement on land
area shall not apply where the proposed municipality is composed of one (1) or more islands. The territorial
jurisdiction of a municipality sought to be created shall be properly identified by metes and bounds.
The creation if a new municipality shall not reduce the land area, population, and income of the original LGU
or LGUs at the time of said creation to less than the prescribed minimum requirements. All expenses incidental
to
the
creation
shall
be
borne
by
the
petitioners.
(b)

Procedure

for

creation

(1) Petition Interested barangays shall submit the petition, in the form of a resolution, of their respective
sanggunians requesting the creation of a new municipality to the Congress, and furnish copies thereof to the
sangguniang panlalawigan, sangguniang panlungsod, or sangguniang bayan of the LGUs concerned.
(2) Comments on petition The sangguniang panlungsod or sangguniang bayan, together with the
sangguniang panlalawigan, shall submit to the Congress its comments and recommendations on the petition
for
creation
of
the
municipality.
(3) Documents to support petition The following documents shall be attached to the petition for creation:
(i) Certification by the provincial treasurer, in the case of municipalities and component cities, and the city
treasurer, in the case of highly-urbanized cities, that the average annual income of the proposed municipality
meets the minimum income requirement and that its creation will not reduce the income, based on 1991
constant prices, of the original LGU or LGUs to less than the prescribed minimum;
(ii) Certification by NSO as to population of the proposed municipality and that its creation will not reduce the
population of the original LGU or LGUs to less than the prescribed minimum;
(iii) Certification by the LMB that the land area of the proposed municipality meets the minimum land area
requirement and that its creation will not reduce the land area of the original LGU or LGUs to less than the
prescribed
minimum;

(iv) Map of the original LGU or LGUs, indicating the areas to be created into a municipality. The map shall be
prepared by the provincial, city, or district engineer as the case may be and shall clearly indicate the road
network
within
the
proposed
city;
(v) Certification by LMB that disposable and alienable public lands are available in the area to be created into
a municipality sufficient to meet its growing population and the following purposes:
Government center site of not less than five thousand (5,000) square meters which shall include the municipal
hall
site
and
those
of
other
government
buildings;
Market site of not less than five thousand (5,000) square meters, located out of view of the municipal hall,
schools, plaza, and cemetery and near but not along a provincial road, railroad station, navigable river, or sea;
Plaza or park of not less than five thousand (5,000) square meters located preferably in front of the municipal
hall;
School site of not less than five thousand (5,000) square meters, in well-drained location that conforms with
the
requirements
prescribed
by
public
school
authorities;
and
Cemetery site of not less than five thousand (5,000) square meters for every ten thousand (10,000) population
which conforms with the requirements prescribed by health authorities.
(vi) Number and nature of existing industrial and commercial establishments in the territory of the proposed
municipality
as
certified
by
NSO;
(vii) Sources of potable water supply for the inhabitants as certified by LWUA or MWSS, as the case may be;
(viii) Facilities, plans, and site for sewerage, garbage and waste disposal as certified by the local engineer; and
(ix) Such other information that the petitioners may deem relevant for consideration in the petition.
All costs incurred in the production of the required documents shall be borne by the petitioning LGUs.
(4) Plebiscite
(i) Upon the effectivity of the law creating a municipality, the COMELEC shall conduct a plebiscite in the
LGUs directly affected within one hundred twenty (120) days or within the period specified in the law.
(ii) The COMELEC shall conduct an intensive information campaign in the LGUs concerned at least twenty
(20) days prior to the plebiscite. For this purpose, the COMELEC may seek the assistance of national and local
government officials, mass media, NGOS, and other interested parties.
(c) Beginning of corporate existence. When a municipality is created, its corporate existence shall
commence upon the election and qualification of its mayor and a majority of the members of its sanggunian,
unless
some
other
time
is
fixed
therefore
by
the
law
creating
it.

ARTICLE 14. Barangays. (a) Creation of barangays by the sangguniang panlalawigan shall require prior
recommendation of the sangguniang bayan.
(b) New barangays in the municipalities within MMA shall be created only by Act of Congress, subject to the
limitations
and
requirements
prescribed
in
this
Article.
(c) Notwithstanding the population requirement, a barangay may be created in the indigenous cultural
communities by Act of Congress upon recommendation of the LGU or LGUs where the cultural community is
located.
(d) A barangay shall not be created unless the following requisites are present:
(1) Population which shall not be less than two thousand (2,000) inhabitants, except in municipalities and
cities within MMA and other metropolitan political subdivisions as may be created by law, or in highlyurbanized cities where such territory shall have a population of at least five thousand (5,000) inhabitants, as
certified by NSO. The creation of a barangay shall not reduce the population of the original barangay or
barangays
to
less
than
the
prescribed
minimum.
(2) Land area which must be contiguous, unless comprised by two (2) or more islands. The territorial
jurisdiction of a barangay sought to be created shall be properly identified by metes and bounds or by more or
less permanent natural boundaries.
All

expenses

incidental

to

the

creation

shall

be

borne

by

the

petitioners.

(e) Procedure for creation

(1) Petition A written petition of a majority of the registered voters residing in the area sought to be created
or resolutions of the sangguniang barangays desiring to be merged, as the case may be, shall be presented to
the sangguniang panlalawigan, upon recommendation of the sangguniang bayan concerned, or to the
sangguniang
panlungsod,
for
appropriate
action.
In the case of municipalities within MMA, a similar petition or resolution shall be presented to the Congress,
upon
recommendation
of
the
sangguniang
bayan
concerned.
(2) Documents to support petition In addition to the petition or resolution, the following shall be submitted:
(i) Certification by NSO as to the population of the proposed barangay and that its creation will not reduce the
population of the original barangay or barangays to less than the prescribed minimum.
(ii) Map of the original barangay or barangays indicating the areas to be created into a new barangay and
technical description certified by LMB or city or municipal assessor, as the case may be.
All costs incurred in the production of the required documents shall be borne by the petitioning LGUs.
(3) Comments on petition The presiding officer of the sangguniang bayan shall require the sangguniang
barangay of the original barangay or barangays to submit their comments on the proposed creation within
twenty (20) days after receipt of said petition or resolution which shall serve as basis for recommending

appropriate

action

thereon

to

the

sangguniang

panlalawigan.

(4) Action on petition The sangguniang panlalawigan or sangguniang panlungsod shall, within fifteen (15)
days from submission of the petition and other required supporting documents, take action granting or
denying the petition.
(i) The ordinance granting the petition creating a new barangay shall be approved by two-thirds (2/3) of all the
members of the sangguniang panlalawigan or sangguniang panlungsod.
The ordinance shall properly identify by metes and bounds or by natural boundaries, the territorial
jurisdiction of the new barangay. The ordinance shall likewise fix the date of the plebiscite to be conducted by
the COMELEC in the area or areas directly affected to ratify the creation of the new barangay.
(ii) A denial shall be in the form of a resolution stating clearly the facts and reasons for such denial.
(5) Submission of ordinance to the COMELEC Within thirty (30) days before the plebiscite, the secretary to
the sangguniang panlalawigan or sangguniang panlungsod shall furnish the COMELEC with a signed official
copy
of
the
ordinance
creating
the
barangay.
(6) Conduct of information campaign The COMELEC shall conduct an intensive information campaign in
the LGUs concerned at least ten (10) days prior to the plebiscite. For this purpose, the COMELEC may seek
the assistance of national and local government officials, mass media, NGOs, and other interested parties.
(7) Submission of plebiscite results At least seven (7) days after the conduct of the plebiscite, the city or
municipality concerned shall submit the Certificates of Canvass of Votes Cast, Statement of Affirmative and
Negative Votes, Abstentions Cast in every voting center as well as the provincial or city ordinance creating the
barangay to the COMELEC and DILG central office for inclusion in the Official Masterlist of Barangays.
(f) Beginning of corporate existence When a barangay is created, its corporate existence shall commence
upon the election and qualification of its punong barangay and a majority of the members of its sanggunian
unless some other time is fixed therefore by the law or ordinance creating it.
(g) Financial requirement The financial requirements of the barangays created by LGUs after the effectivity
of
the
Code
shall
be
the
responsibility
of
the
LGU
concerned.
(h) Consolidation plan of barangays Based on the criteria prescribed in this Article, the governor or city
mayor may prepare a consolidation plan for barangays within his territorial jurisdiction. The said plan shall
be submitted to the sangguniang panlalawigan or sangguniang panlungsod for appropriate action.
In the case of municipalities within MMA and other metropolitan political subdivisions as may be created by
law, the barangay consolidation plan shall be prepared and approved by the sangguniang bayan concerned.
RULE III
Settlement of Boundary Disputes
ARTICLE 15. Definition and Policy. There is a boundary dispute when a portion or the whole of the
territorial area of an LGU is claimed by two or more LGUs. Boundary disputes between or among LGUs shall,

as

much

as

possible,

be

settled

amicably.

ARTICLE 16. Jurisdictional Responsibility. Boundary disputes shall be referred for settlement to the
following:
(a) Sangguniang panlungsod or sangguniang bayan for disputes involving two (2) or more barangays in the
same
city
or
municipality,
as
the
case
may
be;
(b) Sangguniang panlalawigan, for those involving two (2) or more municipalities within the same province;
(c) Jointly, to the sanggunians of provinces concerned, for those involving component cities or municipalities of
different
provinces;
or
(d) Jointly, to the respective sanggunians, for those involving a component city or municipality and a highlyurbanized
city;
or
two
(2)
or
more
highly-urbanized
cities.
ARTICLE 17. Procedures for Settling Boundary Disputes. The following procedures shall govern the
settlement
of
boundary
disputes:
(a) Filing of petition The sanggunian concerned may initiate action by filing a petition, in the form of a
resolution,
with
the
sanggunian
having
jurisdiction
over
the
dispute.
(b) Contents of petition The petition shall state the grounds, reasons or justifications therefore.
(c)

Documents

attached

to

petition

The

petition

shall

be

accompanied

by:

(1) Duly authenticated copy of the law or statute creating the LGU or any other document showing proof of
creation
of
the
LGU;
(2) Provincial, city, municipal, or barangay map, as the case may be, duly certified by the LMB;
(3)

Technical

description

of

the

boundaries

of

the

LGUs

concerned;

(4) Written certification of the provincial, city, or municipal assessor, as the case may be, as to territorial
jurisdiction
over
the
disputed
area
according
to
records
in
custody;
(5) Written declarations or sworn statements of the people residing in the disputed area; and
(6) Such other documents or information as may be required by the sanggunian hearing the dispute.
(d) Answer of adverse party Upon receipt by the sanggunian concerned of the petition together with the
required documents, the LGU or LGUs complained against shall be furnished copies thereof and shall be given
fifteen
(15)
working
days
within
which
to
file
their
answers.
(e) Hearing Within five (5) working days after receipt of the answer of the adverse party, the sanggunian
shall hear the case and allow the parties concerned to present their respective evidences.

(f) Joint hearing When two or more sanggunians jointly hear a case, they may sit en banc or designate their
respective representatives. Where representatives are designated, there shall be an equal number of
representatives from each sanggunian. They shall elect from among themselves a presiding officer and a
secretary.
In
case
of
disagreement,
selection
shall
be
by
drawing
lot.
(g) Failure to settle In the event the sanggunian fails to amicably settle the dispute within sixty (60) days
from the date such dispute was referred thereto, it shall issue a certification to that effect and copies thereof
shall
be
furnished
the
parties
concerned.
(h) Decision Within sixty (60) days from the date the certification was issued, the dispute shall be formally
tried and decided by the sanggunian concerned. Copies of the decision shall, within fifteen (15) days from the
promulgation thereof, be furnished the parties concerned, DILG, local assessor, COMELEC, NSO, and other
NGAs
concerned.
(i) Appeal Within the time and manner prescribed by the Rules of Court, any party may elevate the decision
of the sanggunian concerned to the proper Regional Trial Court having jurisdiction over the dispute by filing
therewith the appropriate pleading, stating among others, the nature of the dispute, the decision of the
sanggunian concerned and the reasons for appealing therefrom. The Regional Trial Court shall decide the case
within one (1) year from the filing thereof. Decisions on boundary disputes promulgated jointly by two (2) or
more sangguniang panlalawigans shall be heard by the Regional Trial Court of the province which first took
cognizance
of
the
dispute.
ARTICLE 18. Maintenance of Status Quo. Pending final resolution of the dispute, the status of the affected
area prior to the dispute shall be maintained and continued for all purposes.
ARTICLE 19. Official Custodian. The DILG shall be the official custodian of copies of all documents on
boundary disputes of LGUs.
RULE IV
Naming of Local Government Units,
Public Places, Streets, and Structures
ARTICLE 20. Naming by the Sangguniang Panlalawigan. The sangguniang panlalawigan, in consultation
with the National Historical Institute (NHI), referred to as the Philippine Historical Commission in the Code,
may
change
the
name
of
the
following
within
its
territorial
jurisdiction:
(a) Component cities and municipalities, upon the recommendation of the sangguniang panlungsod or
sangguniang
bayan,
as
the
case
may
be;
(b)
Provincial
roads,
streets,
avenues,
boulevards,
thoroughfares,
and
bridges;
(c) Provincial public vocational or technical schools and other post-secondary and tertiary schools;
(d)

Provincial

(e)

Any

other

hospitals,
public

health
place

centers,
or

and
building

other
owned

health
by

facilities;
the

and

province.

ARTICLE 21. Naming by the Sanggunians of Highly-Urbanized Cities and Independent Component Cities.
The sanggunians of highly-urbanized cities and component cities whose charters prohibit their voters from
voting for provincial elective officials, hereinafter referred to as independent component cities may, in
consultation with NHI, change the name of the following within their respective territorial jurisdictions:
(a)
(b)

City

barangays,

City

and

upon

barangay

the

roads,

recommendation

streets,

avenues,

of

the

boulevards,

sangguniang

thoroughfares,

barangay;
and

bridges;

(c) City public elementary, secondary, and vocational or technical schools, community colleges, and nonchartered
colleges;
(d)

City

hospitals,

(e)

Any

other

health

centers,

public

place

and

or

other

building

health
owned

facilities;
by

the

and
city.

ARTICLE 22. Naming by the Sanggunians of Component Cities and Municipalities. The sanggunians of
component cities and municipalities may, in consultation with the NHI, change the name of the following
within
their
respective
territorial
jurisdictions:
(a) City and municipal barangays, upon the recommendation of the sangguniang barangay;
(b) City, municipal, and barangay roads, streets, avenues, boulevards, thoroughfares, and bridges;
(c) City and municipal public elementary, secondary, and vocational or technical schools, post-secondary and
other
tertiary
schools;
(d)

City

(e)

Any

and

municipal

other

public

hospitals,
place

health
or

centers,

building

and

other

owned

by

public
the

health

city

or

facilities;

and

municipality.

ARTICLE 23. Guidelines and Limitations. (a) No name of LGUs, public places, streets, and structures with
historical, cultural, or ethnic significance shall be changed, unless by unanimous vote of the sanggunian and in
consultation
with
NHI.
(b) No change in name of an LGU shall be effective unless ratified in a plebiscite called for the purpose.
(c)

Naming

shall

(1)

Naming

after

(2)

(3)

Any

change
change

in
shall

be

subject

a
name
not

living
shall
be

to
person

be
made

made
more

the

following

shall
only
than

not
for

once

a
every

conditions:
be

allowed;

justifiable
ten

(10)

reason;
years;

(4) A change in name of a local public school shall be made only upon the recommendation of the local school
board;
(5) A change in name of local public hospitals, health centers, and other health facilities shall be made only
upon
the
recommendation
of
the
local
health
board;
(6)

The

whole

length

of

street

shall

have

only

one

name;

and

(7) The name of a family in a particular community whose members significantly contributed to the welfare of
the
Filipino
people
may
be
used;
(d) The Office of the President, the representative of the legislative district concerned, and the Postal Services
Office shall be notified of any change in name of LGUs, public places, streets, and structures.
RULE V
Basic Services and Facilities
ARTICLE 24. Devolution. (a) Consistent with local autonomy and decentralization, the provision for the
delivery of basic services and facilities shall be devolved from the National Government to provinces, cities,
municipalities, and barangays so that each LGU shall be responsible for a minimum set of services and
facilities
in
accordance
with
established
national
policies,
guidelines,
and
standards.
(b) For purposes of this Rule, devolution shall mean the transfer of power and authority from the National
Government to LGUs to enable them to perform specific functions and responsibilities.
(c) Any subsequent change in national policies, guidelines, and standards shall be subject to prior consultation
with
LGUs.
ARTICLE 25. Responsibility for Delivery of Basic Services and Facilities. The LGUs shall, in addition to
their existing functions and responsibilities, provide basic services and facilities devolved to them covering, but
not
limited
to,
the
following:
Barangay
(a) Agricultural support services through a distribution system for agriculture and fishery inputs and the
operation
of
agricultural
and
fishery
produce
collection
and
buying
stations;
(b) Health and social welfare services, through maintenance of barangay health and daycare centers;
(c) Services and facilities related to general hygiene and sanitation, beautification, and solid waste collection;
(d)
(e)

Administration
Maintenance

and
of

maintenance

barangay

roads

of
and

the
bridges

Katarungang
and

water

Pambarangay;
supply

systems;

(f) Infrastructure facilities such as multipurpose hall, multipurpose pavement, plaza, sports center, and other

similar

facilities;

(g)

Information

(h)

Satellite

and

reading

public

center;

market,

and
where

viable.

Municipality
(a)

Agriculture

and

fishery

extension

and

on-site

research

through:

(1) dispersal of livelihood and poultry, fingerlings, and other seeding materials for agriculture;
(2) establishment and maintenance of seed farms for palay, corn, and vegetables; medicinal plant gardens;
seedling nurseries for fruit trees, coconuts, and other trees or crops; and demonstration farms;
(3) Enforcement of standards for quality control or copra and improvement and development of local
distribution
channels,
preferably
through
cooperatives;
(4)

Maintenance

(5)

Implementation

(6)

Enforcement

and
of

of

operation

water

fishery

and
laws

soil
in

of

resource

municipal

interbarangay
utilization

waters,

and

irrigation

conservation

including

system;

projects;

conservation

of

and

mangroves.

(b) In accordance with national policies and subject to supervision, control, and review of DENR,
implementation
of
community-based
forestry
projects
through:
(1)

Integrated

social

forestry

programs

and

similar

projects;

(2) Management and control of communal forests with an area not exceeding fifty (50) square kilometers; and
(3)

Establishment

of

tree

parks,

greenbelts,

and

similar

forest

development

projects.

(c) Subject to the provisions of Rule XXIII on local health boards and in accordance with the standards and
criteria of the Department of Health (DOH), provision of health services through:
(1) Implementation of programs and projects on primary health care, maternal and child care, and
communicable
and
non-communicable
disease
control
services;
(2)

Access

to

secondary

and

tertiary

health

services;

and

(3) Purchase of medicines, medical supplies, and equipment needed to carry out the devolved health services.
(d)

Provision

of

social

welfare

services

through:

(1) Programs and projects for the welfare of the youth and children, family and community, women, the

elderly,

and

the

disabled;

(2) Community-based rehabilitation programs for vagrants, beggars, street children, scavengers, juvenile
delinquents,
and
victims
of
drug
abuse;
(3)

Livelihood

and

(4)

Nutrition

(5)

Family

other

pro-poor

projects;

services;

and

planning

services.

(e) Provision of information services through investment and job placement information systems, tax and
marketing
information
systems,
and
maintenance
of
a
public
library;
(f) Provision of solid waste disposal or environmental management systems and services or facilities related to
general
hygiene
and
sanitation;
(g) Construction and maintenance of infrastructure facilities funded by the municipality to serve the needs of
the
residents
including,
but
not
limited
to:
(1)
(2)

Municipal
School

buildings

and

roads
other

facilities

and
for

public

bridges;

elementary

and

secondary

schools;

(3) Clinics, health centers, and other health facilities necessary to carry out health services;
(4)

Communal

irrigation,

(5)
(6)
(7)
(8)

small

water

impounding

projects,

Fish
Artesian

wells,

Seawalls,

spring
dikes,

Traffic

(9)

other

similar

projects;

water

supply

systems;

ports;

development,

rainwater

drainage
signals

and

and

sewerage,

and

Other

collectors,

and
and

road

flood

signs;

similar

control;
and

facilities.

(h) Construction, maintenance, and operation of municipal public markets, slaughterhouses, and other
economic
enterprises;
(i)

Construction,

maintenance,

and

operation

of

municipal

cemeteries;

(j) Construction, maintenance, and operation of tourism facilities and other tourist attractions, including
acquisition of equipment, regulation and supervision of business concessions, and security services for such
facilities;
and

(k) Provision
Province

of

(a)

Agricultural

(1)

Prevention

sites

for

police

extension

and

and

and

fire

on-site

control

of

stations

and

research

plant

and

substations

services
animal

and
pests

and

municipal

facilities
and

jail.

through:
diseases;

(2) Establishment and maintenance of dairy farms, livestock markets, animal breeding stations, and artificial
insemination
centers;
(3) Assistance in the organization of farmer's and fishermen's cooperatives and other collective organizations;
and
(4)

Transfer

of

appropriate

technology.

(b) Industrial research and development services, as well as transfer of appropriate technology;
(c) Pursuant to national policies and subject to supervision, control, and review of DENR, enforcement of
forestry laws limited to community-based forestry projects, pollution control law, small-scale mining law, and
other laws on the protection of the environment; and mini-hydroelectric projects for local purposes;
(d) Subject to the provision of Rule XXIII on local health boards, health services which include hospitals and
other
tertiary
health
services;
(e) Social welfare services which include programs and projects on rebel returnees and evacuees, relief
operations,
and
population
development
services;
(f) Construction and maintenance of provincial buildings, provincial jails, freedom parks and public assembly
areas,
and
other
similar
facilities;
(g) Construction and maintenance of infrastructure facilities funded by the province to serve the needs of the
residents
including,
but
not
limited
to:
(1)

Provincial

roads

and

bridges;

(2) Intermunicipal waterworks, drainage, and sewerage, flood control, and irrigation systems;
(3)
(4)

Reclamation
Other

projects;
similar

and
facilities.

(h) Planning and implementation of the programs and projects for low-cost housing and other mass dwellings,
except those funded by the Social Security System, Government Service Insurance System, and the Home
Development Mutual Fund. National funds for these programs and projects shall be equitably allocated to the
regions
in
proportion
to
the
ratio
of
the
homeless
to
the
population;

(i)

Provision

for

investment

support

services,

including

access

to

credit

financing;

(j) Upgrading and modernization of tax information and collection services through the use of computer
hardware
and
software
and
other
means;
(k) Provision for intermunicipal telecommunications services, subject to national policy guidelines and
standards;
and
(l) Planning
City

and

implementation

of

tourism

development

and

promotion

programs.

All services and facilities provided by the municipality and the province and, in addition thereto, the following:
(a)
(b)

Adequate
Support

services

communication
and

facilities

and
for

transportation
education,

police,

facilities;
and

fire

and
protection.

ARTICLE 26. Exceptions. Public works and infrastructure projects and other facilities, programs, and
services funded by the National Government under the annual General Appropriations Act, other special laws,
and pertinent executive orders, and those wholly or partially funded from foreign sources, are not covered by
the devolution of basic services and facilities under this Rule, except in those cases where the LGU concerned
is duly designated as the implementing agency for such projects, facilities, programs, and services.
ARTICLE 27. Specification and Testing of Materials and Procurement Systems. The designs, plans,
specifications, testing of materials, and procurement of equipment and materials from both foreign and local
sources necessary for the provision of basic services and facilities shall be undertaken by the LGU based on
national
policies,
standards,
and
guidelines.
ARTICLE 28. Period of Devolution. The NGAs concerned shall devolve to LGUs the responsibility for the
provision of basic services and facilities enumerated in this Rule within six (6) months after the effectivity of
the
Code
on
January
1,
1992.
ARTICLE 29. Funding. Basic services and facilities shall be funded from the share of LGU in the proceeds
of national taxes, other local revenues, and funding support from the National Government and its
instrumentalities including GOCCs, tasked by law to establish and maintain such services or facilities. Any
available fund or resource of LGUs shall first be allocated for the provision of basic services and facilities
before using such fund or resource for other purposes, unless otherwise provided under these Rules.
ARTICLE 30. Commercialization and Privatization. (a) LGUs may, by ordinance, sell, lease, encumber, or
otherwise dispose of public economic enterprises owned by them in their proprietary capacity to ensure active
participation
of
the
private
sector
in
local
governance.
(b) Without prejudice to the social attributes of basic services and facilities, LGUs may tap the private sector
in
the
delivery
of
basic
services
and
facilities.

(c) Reasonable costs may be charged by the private sector concerned for the operation and management of
economic
enterprises
for
the
delivery
of
basic
services
and
facilities.
(d) The guidelines issued by DILG in its Circular No. 90-104 dated December 3, 1990 (Annex A) may initially
serve as bases for determining the nature and scope of such services and facilities of LGU that could be
assigned
to
the
private
sector.
(e) The DILG shall formulate an accreditation scheme for the private sector, and a system for cost recovery
and
privatization
of
local
public
enterprises.
ARTICLE 31. Augmentation Scheme. NGAS affected by devolution or the next higher LGU may augment
basic services and facilities assigned to a lower LGU. Standards and guidelines for basic services and facilities
prescribed by NGAs shall be the bases for determining non-availability or inadequacy of such services and
facilities
in
an
LGU.
In the event an LGU cannot continually support the salaries of devolved personnel, maintain the operation of
transferred assets, or finance the adequate delivery of basic services and facilities, the President may, upon
request of the LGU concerned, direct the appropriate NGA to provide financial, technical, or other form of
assistance. Such assistance shall be extended at no extra cost on the part of the LGU.
RULE VI
Eminent Domain
ARTICLE 32. When Exercised. (a) An LGU may, through its chief executive and acting pursuant to an
ordinance, exercise the power of eminent domain for public use, purpose, or welfare of the poor and the
landless, upon payment of just compensation, pursuant to the provisions of the Constitution and pertinent
laws.
(b) The power of eminent domain may not be exercised unless a valid and definite offer has been previously
made
to
the
owner,
and
such
offer
was
not
accepted.
ARTICLE 33. Public Use, Purpose, or Welfare. The following shall, among others, be considered as public
use,
purpose,
or
welfare:
(a)

Socialized

housing;

(b) Construction or extension of roads, streets, sidewalks, viaducts, bridges, ferries, levees, wharves, or piers;
(c)

Construction

(d)

Establishment

(e)
(f)

or

improvement

of

Establishment
Construction

of

parks,

of
playgrounds,

of
artesian

public

market
wells

or

water

buildings;
or

plazas;
places;

supply

systems;

(g)
(h)

Establishment
Establishment

(i)
(j)

of

cemeteries

drainage

Construction

of

Establishment

(k)
(l)

of

of

of

research,

cesspools,

irrigation
nurseries,

Establishment
Building

systems,

or
or

canals
health

sewerage
or

centers,

of
breeding,

crematories;

or

dispersal

dams;

or

abattoirs;

systems;

hospitals;
and

centers

for

animals.

ARTICLE 34. Prerequisites. In acquiring private property for public use or purpose, LGU shall first
establish the suitability of the property to be acquired for the use intended, then proceed to obtain from the
proper authorities the necessary locational clearance and other requirements imposed under existing laws,
rules
and
regulations.
ARTICLE 35. Offer to Buy and Contract of Sale. (a) The offer to buy private property for public use or
purpose shall be in writing. It shall specify the property sought to be acquired, the reasons for its acquisition,
and
the
price
offered.
(b) If the owner or owners accept the offer in its entirety, a contract of sale shall be executed and payment
forthwith
made.
(c) If the owner or owners are willing to sell their property but at a price higher than that offered to them, the
local chief executive shall call them to a conference for the purpose of reaching an agreement on the selling
price. The chairman of the appropriation or finance committee of the sanggunian, or in his absence, any
member of the sanggunian duly chosen as its representative, shall participate in the conference. When an
agreement is reached by the parties, a contract of sale shall be drawn and executed.
(d)

The

contract

of

sale

shall

be

supported

by

the

following

documents:

(1) Resolution of the sanggunian authorizing the local chief executive to enter into a contract of sale. The
resolution shall specify the terms and conditions to be embodied in the contract;
(2)

Ordinance

appropriating

the

amount

specified

in

the

contract;

and

(3) Certification of the local treasurer as to availability of funds together with a statement that such fund shall
not be disbursed or spent for any purpose other than to pay for the purchase of the property involved.
ARTICLE 36. Expropriation Proceedings. (a) If the LGU fails to acquire a private property for public use,
purpose, or welfare through purchase, LGU may expropriate said property through a resolution of the
sanggunian
authorizing
its
chief
executive
to
initiate
expropriation
proceedings.
(b) The local chief executive shall cause the provincial, city, or municipal attorney concerned or, in his absence,

the provincial or city prosecutor, to file expropriation proceedings in the proper court in accordance with the
Rules
of
Court
and
other
pertinent
laws.
(c) The LGU may immediately take possession of the property upon the filing of expropriation proceedings
and upon making a deposit with the proper court of at least fifteen percent (15%) of the fair market value of
the property based on the current tax declaration of the property to be expropriated.
ARTICLE 37. Payment. The amount to be paid for the expropriated property shall be determined by the
proper court, based on the fair market value at the time of the taking of the property.
RULE VII
Reclassification of Agricultural Lands
ARTICLE 38. Authority to Reclassify Agricultural Lands. (a) A city or municipality may reclassify
agricultural lands through an ordinance enacted by the sanggunian after conducting public hearings for the
purpose provided that there exists an approved zoning ordinance implementing its comprehensive land use
plan.
(b)

Agricultural

lands

may

be

classified

in

the

following

cases:

(1) When land ceases to be economically feasible and sound for agricultural purposes as determined by the
Department
of
Agriculture;
or
(2) Where the land shall have substantially greater economic value for residential, commercial, or industrial
purposes
as
determined
by
the
sanggunian.
ARTICLE 39. Limitations. (a) Reclassification shall be limited to the following percentage of the total
agricultural
land
area
at
the
time
of
the
passage
of
the
ordinance:
(1)

For

highly-urbanized

and

independent

component

cities,

fifteen

percent

(15%);

(2) For component cities and first to third class municipalities, ten percent (10%); and
(3)

For

fourth

to

sixth

class

municipalities,

five

percent

(5%).

(b) Agricultural lands distributed to agrarian reform beneficiaries pursuant to Republic Act No. 6657,
otherwise known as the Comprehensive Agrarian Reform Law, shall not be affected by the reclassification.
Conversion of such lands into other purposes shall be governed by Section 65 of said law.
(c) The city or municipality shall provide mechanisms for the preservation and protection of the tenurial rights
of agrarian reform beneficiaries as provided under RA 3844, otherwise known as Agricultural Land Reform
Code, as amended, and other applicable laws in the reclassification of agricultural lands not yet distributed
under
RA
6657.
(d) Nothing in this Rule shall be construed as repealing, amending, or modifying in any manner the provisions
of
RA
6657.

ARTICLE 40. Reclassification in Excess of Percentage Limitation. The President may, when public interest
so requires and upon recommendation of the National Economic and Development Authority (NEDA),
authorize a city or municipality to reclassify lands in excess of the percentage limitation set in the immediately
preceding article. Recommendation of NEDA shall be based on the requirements for food production, human
settlements, ecological considerations, and other relevant factors in the city or municipality.
ARTICLE 41. Comprehensive Land Use Plans. (a) Subject to applicable laws, rules and regulations, cities
and municipalities shall continue to prepare their respective comprehensive land use plans enacted through
zoning ordinances. The requirements for food production, human settlements, ecological balance, and
industrial
expansion
shall
be
considered
in
the
preparation
of
such
plans.
(b) The comprehensive land use plan shall be the primary and dominant basis for future use of local resources
and
for
reclassification
of
agricultural
lands.
(c) The sangguniang panlalawigan shall review the comprehensive land use plans and zoning ordinances of
component cities and municipalities and shall adopt comprehensive provincial land use plan, primarily based
on
the
revised
plans.
ARTICLE 42. Approval of Reclassification. When approval of an NGA is required for reclassification, such
approval shall not be unreasonably withheld. Failure to act on a proper and complete application for
reclassification within three months from receipt of the same shall be deemed as approval thereof.
RULE VIII
Closure and Opening of Roads or Parks
ARTICLE 43. Authority to Close or Open. An LGU may, through an ordinance, permanently or
temporarily close or open any road, alley, park, or square within its jurisdiction.
ARTICLE 44. Permanent Closure. (a) No permanent closure of any local road, street, alley, park, or square
shall be affected unless there exists a compelling reason or sufficient justification therefore such as, but not
limited to, change in land use, establishment of infrastructure facilities, projects, or such other justifiable
reasons
as
public
welfare
may
require.
(b) When necessary, an adequate substitute for the public facility that is subject to closure shall be provided.
No freedom park shall be closed permanently without provision for its transfer or relocation to a new site.
(c) No such way or place or any part thereof shall be permanently closed without making provisions for the
maintenance
of
public
safety
therein.
(d) A property permanently withdrawn from public use may be used or conveyed for any purpose for which
other
real
property
belonging
to
LGU
may
be
lawfully
used
or
conveyed.
(e) The ordinance authorizing permanent closure must be approved by at least two-thirds (2/3) of all members
of the sanggunian. Public hearings shall first be conducted before any ordinance authorizing permanent
closure of any local roads, alley, park, or square is enacted. Notices of such hearings and copies of the proposed

ordinance shall be posted for a minimum period of three (3) consecutive weeks in conspicuous places in the
provincial capitol, or in the city, municipal, or barangay hall of LGU and within the vicinity of the street or
park
proposed
to
be
closed.
ARTICLE 45. Temporary closure. (a) Any national or local road, alley, park, or square may be temporarily
closed during actual emergency or fiesta celebrations, public rallies, agricultural or industrial fairs, or
undertaking of public works and highways, telecommunications, and waterworks projects, the duration of
which shall be specified by the local chief executive concerned in a written order, as follows:
(1)

During

fiesta

celebrations

for

period

not

exceeding

nine

(9)

days;

(2) During agricultural or industrial fairs or expositions for a period as may be determined to be necessary
and
reasonable;
(3) When public works projects or activities are being undertaken for a period as may be determined
necessary for the safety, security, health, or welfare of the public or when such closure is necessary to facilitate
completion
of
the
projects
or
activities.
(b) An LGU may temporarily close and regulate the use of any local street, road, thoroughfare, or public place
where shopping malls, Sunday markets, flea or night markets, or shopping areas may be established and
where goods, merchandise, foodstuff, commodities, or articles of commerce may be sold and dispensed to the
general
public.
(c) No national or local road, alley, park, or square shall be temporarily closed for athletic, cultural, or civic
activities not officially sponsored, recognized, or approved by the LGU.
RULE IX
Corporate Powers and Corporate Seal
ARTICLE 46. Corporate Powers. Every LGU, as a corporation, shall exercise the following powers:
(a)

To

have

(b)
(c)
(d)
(e)

continuous

To
To

sue
have

To

acquire
To

succession

enter

its

and
and

and

in

be

use
convey

a
real

into

corporate
sued;
corporate

or

name;

personal

contracts;

seal;
property;
and

(f) To exercise such other powers as are granted to corporations subject to the limitations provided under the
Code
and
other
applicable
laws.
ARTICLE 47. How Exercised. (a) Unless otherwise provided in the Code, no contract may be entered into
by the local chief executive in behalf of an LGU without prior authorization by the sanggunian. A legible copy

of such contract shall be posted at a conspicuous place in the provincial capitol, or in the city, municipal, or
barangay
hall.
(b) LGUs 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 the Code and other applicable laws.
(c) An LGU shall duly register in its name all its acquired real property and shall notify the Commission on
Audit
(COA)
of
such
registration.
ARTICLE 48. Corporate Seal. LGUs may modify, change, or continue using their existing corporate seals.
Newly established LGUs or those without corporate seals may create their own corporate seals in consultation
with NHI, and shall register such seals with DILG. Any change of corporate seal shall also be registered with
DILG.
RULE X
Authority to Negotiate and Secure Grants
ARTICLE 49. Extent of Authority. Local chief executive may, upon authority of the sanggunian, negotiate
and secure financial grants or donations in kind, in support of the basic services and facilities enumerated
under Rule V of these Rules, from local or foreign assistance agencies without necessity of securing clearance,
or approval therefore from any NGA or from any higher LGU. In cases where the projects financed by such
grants or assistance affect national security, prior clearance shall be secured by the LGU from the NGA
concerned. If the NGA fails to act on the request for clearance within thirty (30) days from receipt thereof,
such
request
shall
be
deemed
approved.
ARTICLE 50. Monitoring System. Within thirty (30) days after the approval of these Rules, the NEDA
shall, in coordination with DILG and other NGAs concerned, design and formulate a clearing and monitoring
system
to:
(a) Assist LGUs and the granting institutions in the expeditious submission and approval of project proposals,
respectively;
(b) Assist LGUs and the granting institutions in the monitoring of project status and progress;
(c) Ensure the granting institutions that no project shall be doubly funded by other institutions; and
(d) Ensure submission of satisfactory project status reports to the granting institutions in compliance with
grant
agreements.
ARTICLE 51. Directory and Quarterly Information. (a) The NEDA shall annually provide a directory of all
local and foreign granting institutions which shall contain the thrusts and priorities of such institutions and
guidelines
on
application
for
grants
as
well
as
other
relevant
information.
(b) The NEDA and all other NGAs concerned shall provide quarterly information to all LGUs on unutilized
balances
of
granting
institutions.

ARTICLE 52. Report. The local chief executive shall, within thirty (30) days upon approval of the grant
agreement or deed of donation, report the nature, amount, and terms of such assistance to both Houses of
Congress and the President, through DILG.
RULE XI
National-Local Government Relations
ARTICLE 53. National Government Supervision and Coordination. (a) The President shall exercise general
supervision over LGUs to ensure that their acts are within the scope of their prescribed powers and functions.
The President shall exercise supervisory authority directly over provinces, highly-urbanized cities, and
independent component cities; through the province with respect to component cities and municipalities; and
through
the
city
and
municipality
with
respect
to
barangays.
In exercising general supervision over LGUs the President shall be assisted primarily by DILG, unless
otherwise provided in the Code or elsewhere in these Rules and other applicable laws.
(b) The President may, upon request of LGU concerned, direct the appropriate NGA to provide financial,
technical,
or
other
forms
of
assistance
to
LGU.
ARTICLE 54. Mandatory Consultations. (a) All NGAs shall conduct periodic consultations with
appropriate LGUs, people's organizations, NGOs, and other concerned sectors of the community before any
project
or
program
is
implemented
in
their
respective
jurisdictions.
(b) NGAs or GOCCs authorizing or involved in planning and implementation of any project or program that
may cause pollution, climatic change, depletion of non-renewable resources, loss of cropland, rangeland, or
forest cover, and extinction of animal or plant species shall consult with LGUs, NGOs, and other sectors
concerned and explain the goals and objectives of the project or program, its impact upon the people and the
community in terms of environmental or ecological balance, and the measures that will be undertaken to
prevent
or
minimize
the
adverse
effects
thereof.
ARTICLE 55. Coordination with LGUs. (a) NGAs with project implementation functions shall coordinate
with one another and with LGUs concerned in the discharge of these functions. They shall ensure the
participation of LGUs both in the planning and implementation of said national projects.
(b) NGAs and GOCCs with field units or branches in a province, city, or municipality shall furnish the local
chief executive concerned, for his information and guidance, monthly reports, including duly certified
budgetary
allocations
and
expenditures.
ARTICLE 56. Relationship of Local Chief Executive with National Functionaries Stationed in LGUs. (a)
The local chief executives may call upon any national official or employee stationed in or assigned to an LGU
to advise and regularly report to him on matters affecting LGUs and make recommendations thereon; or to
coordinate in the formulation and implementation of all plans, programs, and projects.
(b) When appropriate, the local chief executive may initiate an administrative or judicial action against any
National Government official or employee who may have committed an offense in the performance of his

official

duties

while

stationed

or

assigned

in

the

LGU

concerned.

(c) The local chief executive shall inform the NGA concerned if any services have adverse effects on the lives of
the citizen that is foreseen or is being felt and to submit proposals intended to prevent or mitigate the same
preferably
before
project
implementation.
ARTICLE 57. Relations with the Philippine National Police. The extent of operational supervision and
control of local chief executives over the police force, fire protection unit, and jail management personnel
assigned in their respective jurisdiction shall be governed by the provisions of RA 6975, otherwise known as
The Department of the Interior and Local Government Act of 1990, and the rules and regulations issued
pursuant
thereto
(Annex
B).
ARTICLE 58. Prior Approval or Clearance on Regular and Recurring Transactions. Six (6) months after
the effectivity of the Code, prior approval of or clearance from NGAs shall no longer be required and
recurring transactions and activities of LGUs.
RULE XII
Inter-Local Government Relations
ARTICLE 59. General Supervision of the Province Over Component Cities and Municipalities. (a) The
province, through its governor, shall exercise supervisory authority over component cities and municipalities
within its territorial jurisdiction to ensure that they act within the scope of their prescribed powers and
functions. Highly-urbanized cities and independent component cities shall be independent of the province.
(b) The scope of supervision by the province over component cities and municipalities shall include, but not
limited
to,
the
following:
(1) The governor shall review executive orders issued by the mayor of the component city or municipality,
subject to the concurrence of the sangguniang panlalawigan, except as otherwise provided under the
Constitution and special statutes. If the governor and the sangguniang panlalawigan fail to act on said
executive orders within thirty (30) days from receipt thereof, the same shall be deemed consistent with law and
therefore
valid.
(2) The sangguniang panlalawigan shall review all approved city or municipal ordinances and resolutions
approving the development plans and public investment programs formulated by the city or municipal
development
councils.
(3) The sangguniang panlalawigan shall review the ordinance authorizing annual or supplemental
appropriations of component cities and municipalities in the same manner and within the same period
prescribed
for
the
review
of
other
ordinances
of
the
LGU.
(4) The governor shall visit component cities and municipalities of the province at least once every six (6)
months to fully understand their problems and conditions, listen and give appropriate counsel to local officials
and inhabitants, inform the officials and inhabitants of component cities and municipalities of general laws
and ordinances which especially concern them, and conduct visits and inspections to the end that the
governance of the province shall improve the quality of life of the inhabitants.

(5) The governor shall coordinate plans, measures, and developmental activities with component cities and
municipalities
as
well
as
NGAs
concerned
to:
(i) Formulate peace and order plan of the province in coordination with mayors of component cities and
municipalities
and
the
National
Police
Commission;
(ii) Adopt adequate measures to safeguard and conserve land, mineral, marine, forest, and other resources of
the province, in coordination
with mayors
of component cities
and
municipalities;
(iii) Coordinate efforts of component cities and municipalities in the national or regional palaro or sports
development
activities;
and
(iv) Call conventions, conferences, seminars, or meetings of any elective and appointive officials of the province
and
component
cities
and
municipalities.
(6) The proceeds of the basic real property tax, including interest thereon, and proceeds from the use, lease or
disposition, sale or redemption of property acquired at a public auction shall be shared by the province,
municipality, and barangay in the manner prescribed in Rule XXXI of these Rules.
(7) The province shall share its collections from the tax on sand, gravel, and other quarry resources with its
component city and municipality, and the barangay where said resources are extracted.
ARTICLE 60. General Supervision of Cities and Municipalities Over Barangays. (a) The city and
municipality, through the city and municipal mayor, shall exercise supervisory authority over every barangay
in their respective territorial jurisdictions to ensure that they act within the scope of their assigned powers and
functions.
(b) The scope of supervision by the city and municipality over their barangays shall include, but not limited to,
the
following:
(1) The city or municipal mayor shall review all executive orders promulgated by the punong barangay within
his jurisdiction, subject to the concurrence of the sangguniang panlungsod or sangguniang bayan, except as
otherwise
provided
under
the
Constitution
and
special
statutes.
(2) The sangguniang panlungsod or sangguniang bayan concerned shall review all barangay ordinances to
determine
whether
or
not
such
ordinances
are
consistent
with
law.
(3) The city or municipal mayor shall visit and inspect his barangays at least once every six (6) months to fully
understand the problems and conditions therein, listen and give appropriate counsel to barangay officials and
inhabitants, and inform them of general laws and ordinances which especially concern them, and conduct
visits and inspections to the end that the governance of the city or municipality will improve the quality of life
of
the
inhabitants.
(4) Cities or municipalities shall provide an annual aid of not less than One Thousand Pesos (P1,000.00) per
barangay.

(5) Cities or municipalities shall coordinate with their barangays in the adoption of complementary
development plans and programs for a more effective solution of problems or concerns affecting the LGU.
(6) The sangguniang panlungsod or the sangguniang bayan shall provide for group insurance or additional
insurance coverage for barangay officials, including members of barangay tanod brigades and other service
units, with public or private insurance companies when finances of the city or municipality allow said
coverage.
(7) The proceeds of the basic real property tax, including interest thereon, and proceeds from the use, lease or
disposition, sale or redemption of property acquired at public auction by the city or municipality shall be
shared
with
their
barangays
in
the
manner
prescribed
under
these
Rules.
ARTICLE 61. Inter-Local Government Loans, Grants, Subsidies and Other Cooperative Undertakings. (a)
Provinces, cities, and municipalities may, upon approval of a majority of all members of the sanggunian
concerned and in amounts not exceeding their surplus funds, extend loans, grants, or subsidies to other LGUs
under such terms and conditions as may be agreed upon by the contracting parties.
(b) LGUs may, through appropriate ordinances, group themselves, consolidate or coordinate their efforts,
sources, and resources for purposes commonly beneficial to them. In support of such undertakings, LGUs may,
upon approval by the sanggunian concerned after public hearing conducted for the purpose, contribute funds,
real estate, equipment, and other kinds of property and appoint or assign personnel under such terms and
conditions as may be agreed upon by the participating LGUs through a Memorandum of Agreement.
(c) LGUs may, upon approval of their respective sanggunians, jointly or severally contract loans, credits and
other
forms
of
indebtedness
for
purposes
mutually
beneficial
to
them.
(d) The procedures in contracting inter-local government loans, credits and other forms of indebtedness as well
as
other
cooperative
undertakings
are
as
follows:
(1) The local chief executive, in consultation with the local development council (LDC), shall identify the
programs,
projects,
and
activities
that
may
be
considered;
(2) The local chief executive shall negotiate with the prospective LGU partner or partners on the terms and
conditions
of
the
agreement
to
be
embodied
in
a
Memorandum
of
Agreement.
(3) The local chief executives concerned may organize a team to negotiate the terms and conditions of the joint
loan. The final terms and conditions shall be subject to the approval of the said local chief executives.
(4) The local chief executives concerned shall submit the Memorandum of Agreement to their respective
sanggunians for approval and authority to enter into inter-local government cooperative undertaking or joint
loan or credit. In the case of cooperative undertakings, the sanggunian shall conduct as many public hearings
as may be required to obtain the views and opinions of the affected sectors.
(5)

The

loan

agreement

shall

be

signed

jointly

by

the

local

chief

executives

concerned.

(6) Within ten (10) days from signing of the loan agreement, the local chief executives concerned shall formally
submit
a
copy
of
the
approved
loan
agreement
to
their respective
sanggunians.
RULE
XIII
Local Government Relations With People's Organizations, Nongovernmental Organizations, and the Private
Sector
ARTICLE 62. Role of People's Organizations, Nongovernmental Organizations and the Private Sector.
LGUs shall promote the establishment and operation of people's organizations, NGOs, and the private sector,
to make them active partners in the pursuit of local autonomy. For this purpose, people's organizations,
NGOs, and the private sector shall be directly involved in the following plans, programs, projects, or activities
of
LGUs:
(a)
(b)
(c)
(d)
(e)
(f)

Local
Delivery
Joint

Preferential

of

ventures

Financial
treatment

Preferential

special
basic
and

and
for

services

cooperative
other

organizations

treatment

for

bodies;

programs
forms

and

cooperatives
cooperatives

and

facilities;

or

undertakings;

of
of

marginal
development;

assistance;
fishermen;
and

(g) Financing, construction, maintenance, operation, and management of infrastructure projects.

ARTICLE 63. Local Special Bodies. (a) Local Development Councils The duly designated representatives
of accredited people's organizations, NGOs, and the private sector operating in the provinces, cities,
municipalities, or barangays shall sit as members in the provincial, city, municipal, or barangay development
councils, as the case may be. The number of NGO representatives in each LDC shall not be less than onefourth
(1/4)
of
the
total
membership
of
the
fully
organized
council.
The local chief executive shall undertake the necessary information campaign to ensure participation of all
NGOs
operating
within
his
territorial
jurisdiction.
(b) Local Prequalification, Bids and Awards Committees Two (2) representatives of people's organizations
or NGOs that are represented in the LDC concerned, to be chosen by the organizations themselves, and a
practicing certified public accountant from the private sector, to be designated by the local chapter of the
Philippine Institute of Certified Public Accountant, if any, shall sit as members of the provincial, city, and
municipal
prequalification,
bids
and
awards
committees
(PBACs).
(c) Local Health Boards A representative from NGOs or the private sector involved in health services in the
province, city, and municipality shall sit as member of the provincial, city or municipal health boards,
respectively.

(d) Local School Boards The representatives of NGOs or the private sector who shall sit as members of the
local
school
boards
are
as
follows:
(1) Provincial school board the duly elected president of the provincial federation of parents-teachers
associations, the duly elected representative of teachers' organizations in the province, and the duly elected
representative
of
the
non-academic
personnel
of
public
schools
in
the
province;
(2) City school board the duly elected president of the city federation of parents-teachers associations, the
duly elected representative of teachers' organizations in the city, and the duly elected representative of the nonacademic
personnel
of
public
schools
in
the
city;
(3) Municipal school board the duly elected president of the municipal federation of parents-teachers
associations, the duly elected representative of the teachers' organizations in the municipality, and the duly
elected representative of the non-academic personnel of the public schools in the municipality;
(e) Local Peace and Order Councils The representatives of people's organizations or NGOs in the local
peace and order councils shall be the same as those provided under Presidential EO 309, series of 1988, as
amended, and the implementing rules and regulations issued pursuant thereto (Annex B).
(f) People's Law Enforcement Boards The representatives of people's organizations or NGOs who sit as
members of the boards shall be the same as those provided under RA 6975, and the rules and regulations
issued
pursuant
thereto.
ARTICLE 64. Procedures and Guidelines for Selection of Representatives of People's Organizations,
Nongovernmental Organizations, or the Private Sector in Local Special Bodies. (a) Call for application
Within thirty (30) days from the approval of these Rules and thereafter, within thirty (30) days from the
organization of the newly elected sanggunian, each sanggunian concerned shall call all community-based
people's organizations or NGOs, including business and professional groups, and other similar aggrupations to
apply with the LGU concerned for accreditation for membership in the local special bodies. The application
shall include a duly approved board resolution of the people's organizations, NGOs or the private sector
concerned, certificate of registration, list of officers, accomplishments, and financial data of the organization;
(b) Accreditation The sanggunian concerned shall accredit the organizations based on the following criteria:
(1) Registration with either the Securities and Exchange Commission, Cooperatives Development Authority,
Department of Labor and Employment, Department of Social Welfare and Development, or any recognized
NGA that accredits people's organizations, NGOs, or the private sector. If not formally registered, the said
organizations may be recognized by the sanggunian for purposes only of meeting the minimum requirements
for
membership
of
such
organizations
in
local
special
bodies;
(2) Organizational purpose and objectives include community organization and development, institutionbuilding, local enterprise development, livelihood development, capability-building, and similar developmental
objectives
and
considerations;
(3) Community-based with project development and implementation track record of at least one (1) year;

(4) Reliability as evidenced by the preparation of annual reports and conduct of annual meetings duly certified
by
the
board
secretary
of
the
organization;
and
(5) In the case of PBACs, the organization or any of its members shall have no conflict of interest in the
awarding
of
infrastructure
or
other
projects.
(c) Completion of the accreditation process The sanggunian shall complete the accreditation process within
sixty (60) days from the promulgation of these Rules or within the same period from the organization of the
newly
elected
sanggunian.
(d) Meeting to choose representatives of people's organizations, NGOs, or the private sector Within fifteen
(15) days after the accreditation process, the DILG field officer assigned in the LGU shall call all accredited
people's organizations, NGOs, or the private sector to a meeting where these organizations shall choose from
among themselves which people's organizations, NGOs or private sector will be represented in the local special
bodies. The selected people's organizations, NGOs or private sector shall then designate their principal and
alternate representatives who are residents of the LGU concerned. In no case shall an organization or a
representative thereof be a member of more than one local special body within a province, city, or
municipality.
(e) Term of office of selected representatives The term of office of a selected representative shall be
coterminous with that of the local chief executive concerned. Should a vacancy arise, the selected people's
organizations, NGOs, or the private sector shall designate a replacement for the unexpired term.
ARTICLE 65. Delivery of Basic Services and Facilities. LGUs may, by ordinance, sell, lease, encumber, or
otherwise dispose of public economic enterprises owned by them in their proprietary capacity to the private
sector
to
ensure
their
active
participation
in
local
governance.
ARTICLE 66. Joint Ventures and Cooperative Programs or Undertakings. LGUs may enter into joint
ventures and such other cooperative arrangements with people's organizations, NGOs or the private sector, to
engage in the delivery of certain basic services; capability-building and livelihood projects; develop local
enterprises designed to improve productivity and income; diversify agriculture; spur rural industrialization;
promote ecological balance; and enhance the economic and social well-being of the people.
ARTICLE 67. Financial and Other Forms of Assistance. An LGU may, through its chief executive and with
the concurrence of the sanggunian concerned, provide assistance, financial or otherwise, to people's
organizations, NGOs, or the private sector for economic, socially-oriented, environmental, or cultural projects
to be implemented within its territorial jurisdiction. An LGU may likewise grant tax exemptions, tax relief and
other
tax
incentives
to
the
said
organizations
as
provided
in
these
Rules.
ARTICLE 68. Preferential Treatment for Organizations and Cooperatives of Marginal Fishermen. (a) The
duly registered organizations and cooperatives of marginal fishermen shall have preferential right in the grant
by the sanggunian to erect fish corrals, oyster, mussel or aquatic beds or bangus fry areas, within a definite
zone
of
the
municipal
waters.
(b) The sanggunian may grant the privilege to gather, take or catch bangus fry, prawn fry or kawag-kawag or
fry of other species and fish from the municipal waters by nets, traps or other fishing gears to marginal
fishermen
free
of
any
rental,
fee,
charge,
or
any
other
imposition
whatsoever.

ARTICLE 69. Preferential Treatment for Cooperatives. Upon approval by a majority vote of all its
members, the sangguniang panlungsod or sangguniang bayan may grant a franchise to any person,
partnership, corporation, or cooperative to establish, construct, operate and maintain ferries, wharves,
markets or slaughterhouses, or such other similar activities within the city or municipality as may be allowed
by applicable laws. Cooperatives shall be given preference in the grant of franchises as contemplated in this
Article.
ARTICLE 70. Financing, Construction, Maintenance, Operation, and Management of Infrastructure Projects
by the Private Sector. LGUs may enter into a contract with any duly prequalified individual contractor for
the financing, construction, operation, and maintenance of any financially viable infrastructure facilities,
under the build-operate-and-transfer (B-O-T) agreement, subject to the applicable provisions of RA 6957
authorizing the financing, construction, operation, and maintenance of infrastructure projects by the private
sector and the rules and regulations issued thereunder and such other terms and conditions as may be agreed
upon by the contracting parties.
RULE XIV
Common Provisions for Elective Local Officials
ARTICLE 71. Local Officials. The elective officials of provinces, cities, municipalities, and barangays are
the
following:
Provinces
(a)
(b)
(c)

governor;
governor;
the
sangguniang

vice
members

of

and
panlalawigan.

Cities
(a)
(b)
(c)

city
city
members

vice
of

the

mayor;
mayor;
sangguniang

and
panlungsod.

Municipalities
(a)
(b)
(c)

municipal
municipal
members

vice
of

the

mayor;
mayor;
sangguniang

and
bayan.

Barangays
(a)
(b)
(c)

members
members

punong
of
of

the
the

barangay;
sangguniang
barangay;
and
sangguniang
kabataan.

ARTICLE 72. Qualifications. All elective local officials shall possess the following qualifications:
(a)

citizen

of

the

Philippines;

(b) A registered voter in the province, city, municipality, or barangay where he intends to be elected or, in the
case of a member of the sangguniang panlalawigan, sangguniang panlungsod, or sangguniang bayan, the
district
where
he
intends
to
be
elected;
(c) A resident of the LGU concerned for at least one (1) year immediately preceding the day of the election;
(d)

Able

to

read

and

write

Filipino

or

any

other

Philippine

language

or

dialect;

(e) Candidates for the position of governor, vice governor, or member of the sangguniang panlalawigan, or city
mayor, vice mayor, or member of the sangguniang panlungsod of highly-urbanized cities must be at least
twenty-three
(23)
years
of
age
on
election
day;
(f) Candidates for the position of mayor or vice mayor of independent component cities, component cities, or
municipalities must be at least twenty-one (21) years of age on election day;
(g) Candidates for the position of member of the sangguniang panlungsod or sangguniang bayan must be at
least
eighteen
(18)
years
of
age
on
election
day;
(h) Candidates for the position of punong barangay or member of the sangguniang barangay must be at least
eighteen
(18)
years
of
age
on
election
day;
and
(i) Candidates for the position of member of the sangguniang kabataan must be at least fifteen (15) years of
age
but
not
more
than
twenty-one
(21)
years
of
age
on
election
day.
ARTICLE 73. Disqualifications. The following persons shall be disqualified from running for any elective
local
position:
(a) Those sentenced by final judgment for an offense involving moral turpitude or for an offense punishable by
one (1) year or more imprisonment, within two (2) years after serving sentence;
(b)

Those

removed

from

office

as

result

of

an

administrative

case;

(c) Those convicted by final judgment for violating the oath of allegiance to the Republic of the Philippines;
(d)

Those

with

dual

citizenship;

(e) Fugitives from justice in criminal or nonpolitical cases here or abroad. Fugitive from justice refers to a
person
who
has
been
convicted
by
final
judgment.
(f) Permanent residents in a foreign country or those who have acquired the right to reside abroad and
continue to avail of the same right after the effectivity of the Code; and

(g)

The

insane

or

the

feeble-minded.

ARTICLE 74. Manner of Election. (a) The governor, vice governor, city mayor, city vice mayor, municipal
mayor, municipal vice mayor, and punong barangay shall be elected at large in their respective LGUs by the
qualified voters therein. The sangguniang kabataan chairman for each barangay shall be elected by the
registered voters of the katipunan ng kabataan, as provided in Rule XXVII of these Rules.
(b) The regular members of the sangguniang panlalawigan, sangguniang panlungsod, and sangguniang bayan
shall be elected by district, as may be provided by law. Sangguniang barangay members shall be elected at
large.
(c) There shall be one (1) sectoral representative from the women, one (1) from the workers, and one (1) from
any of the following sectors; the urban poor, indigenous cultural communities, disabled persons, or any other
sector as may be determined by the sanggunian concerned within ninety (90) days prior to the holding of the
next local elections, as may be provided by law. The COMELEC shall promulgate rules and regulations to
effectively
provide
for
the
election
of
such
sectoral
representatives.
ARTICLE 75. Date of Election. Unless otherwise provided by law, the elections for local officials shall be
held every three (3) years on the second Monday of May starting on the second Monday of May 1992 except
for the barangay officials which shall be on the second Monday of May, 1994 and sangguniang kabataan
officials which shall be one hundred twenty days (120) after the second Monday of May, 1994.
ARTICLE 76. Term of Office. (a) The term office of all elective local officials shall be three (3) years,
starting from noon of June 30, 1992 or such date as may be provided by law except that of elective barangay
officials, which shall begin after the regular elections for barangay officials on the second Monday of May,
1994.
(b) No elective local official shall serve for more than three (3) consecutive terms in the same position.
Voluntary renunciation of the office for any length of time shall not be considered as an interruption in the
continuity of service for the full term for which the elective official concerned was elected.
ARTICLE

77.

Compensation

and

Benefits.

(a)

Compensation

(1) Upon effectivity of the Code, an elective local official shall receive a minimum monthly compensation
corresponding to the salary grade as prescribed under RA 6758, otherwise known as the Salary
Standardization Law, and the implementing guidelines issued thereunder, as follows:
Provinces
(i)
(ii)
(iii)

governor
vice
members

of

Cities
(i)

the

SG-30
governor
sangguniang

SG-28
panlalawigan

city

mayor

SG-30

SG-27

(ii)
city
component
(iii)
members
highly-urbanized
component

vice
of

mayor
cities
the
cities

highly-urbanized
SG-26
sangguniang
SG-27

SG-28

panlungsod

cities

Municipalities
(i)
outside
(ii)
outside
(iii)
within
outside

cities

SG-25

municipal
municipal
members

mayor
MMA
vice

within
mayor

MMA
of

within
the

MMA
SG-27
MMA
SG-25
sangguniang

SG-28
SG-26
bayan
SG-25

MMA
MMA

SG-24

(2) The ex officio members in the sangguniang panlalawigan shall receive their authorized salaries and
emoluments from the component city or municipality where they are representing their respective ligas or
federations. The province shall appropriate funds for the additional allowances of said members such that
their total compensation shall be equivalent to the compensation actually received by their elective
counterparts
in
the
sangguniang
panlalawigan.
(3) Any compensation beyond the minimum of the authorized salary grade shall be determined by the
sanggunian concerned provided that the increase in compensation of elective local officials shall take effect
only after the terms of office of those approving such increase shall have expired and provided further, that
said increase shall not exceed the budgetary limitation on personal services and provided finally, that such
compensation shall not be higher than the maximum fixed for their positions provided under applicable laws
or
rules
and
regulations
issued
thereunder.
(4) Notwithstanding the prohibition under the immediately preceding subparagraph (3), elective local officials
may, during their tenure, be allowed to receive the minimum rate of the salary grade prescribed in this Article.
(5) Elective barangay officials shall receive honoraria, allowances, and such other emoluments as may be
authorized by law or city, municipal or barangay ordinance in accordance with the provisions of these Rules,
but in no case shall it be less than One Thousand Pesos (P1,000.000) per month for the punong barangay and
Six Hundred Pesos (P600.00) per month for the members of the sangguniang barangay, subject to budgetary
limitations
prescribed
in
Rule
XXXIV
of
these
Rules.
(b)

Benefits

(1) Elective local officials shall be entitled to the same leave privileges those enjoyed by appointive local
officials,
including
the
cumulation
and
commutation
thereof.
(2)

Elective

barangay

officials

shall:

(i) Be entitled to a Christmas bonus of at least One Thousand Pesos (P1,000.00) each, the funds for which shall
be taken from the general fund of the barangay or from such other funds appropriated by the National
Government
for
the
purpose;
(ii) Be entitled, during their incumbency, to insurance coverage which shall include, but not limited to
temporary and permanent disability, double indemnity, accident insurance, death and burial benefits, in
accordance with RA 6942 entitled An Act Increasing the Insurance Benefits of Local Government Officials and
Providing
Funds
therefor.
The Government Service Insurance System shall establish and administer an appropriate system under which
the punong barangay, the members of the sangguniang barangay, the barangay secretary, the barangay
treasurer, and the members of the barangay tanod shall enjoy insurance coverage as provided in the
immediately preceding paragraph. For this purpose, the Government Service Insurance System shall
undertake an actual study, issue rules and regulations, determine the premiums payable, and recommend to
the Congress the amount of appropriations needed to support the system. The amount needed for the
implementation of the said insurance system shall be included in the annual General Appropriations Act.
(iii) Be entitled to free medical care including subsistence, medicines, and medical attendance in any
government hospital or institution. Hospital care shall include surgery or surgical expenses, medicines, x-rays,
laboratory
fees,
and
other
hospital
expenses;
In case of extreme urgency where there is no available government hospital or institution, the elective
barangay official may submit himself for immediate medical attendance to the nearest private clinic, hospital
or institution and the expenses not exceeding Five Thousand Pesos (P5,000.00) that may be incurred therein
shall
be
chargeable
against
the
funds
of
the
barangay
concerned;
(iv) Be exempted during their incumbency from paying tuition and matriculation fees for their legitimate
dependent children attending state colleges or universities. He may likewise avail of such educational benefits
in a state college or university located within the province or city to which the barangay belongs; and
(v) Be entitled to appropriate civil service eligibility on the basis of the number of years of service to the
barangay,
pursuant
to
the
rules
and
regulations
issued
by
the
CSC.
(3) Elective barangay officials shall have preference in appointments to any government position or in any
GOCC, including its subsidiaries, after their tenure of office, subject to the requisite qualifications as CSC may
prescribe.
(4) The sangguniang kabataan officials shall have the same privileges enjoyed by other sangguniang barangay
officials under the Code, subject to such requirements and limitations provided in these Rules. During their
incumbency, sangguniang kabataan officials shall be exempt from payment of tuition and matriculation fees.
The said officials shall enroll in the state college or university within or nearest their area of jurisdiction to
qualify
for
the
privilege.
ARTICLE 78. Prohibition Against Withholding of Benefits. Willful and malicious withholding of any of the
benefits accorded to barangay officials under this Rule shall be punished with suspension or dismissal from
office
of
the
official
or
employee
responsible
therefore.

ARTICLE

79.

Residence

and

Office.

During

their

incumbency,

(a) Governors shall have his official residence in the capital town or capital city of the province.
(b) All other provincial elective officials shall hold office in the provincial capital provided that upon resolution
of the sangguniang panlalawigan, said officials may hold office in any component city or municipality within
the province for a period of not more than seven (7) days for any given month.
(c) City and municipal mayors shall hold office in their respective city and municipal halls.
ARTICLE 80. Prohibition on Appointment to Other Public Office. No elective local official shall be eligible
for appointment or designation in any capacity to any public office or position during his tenure.
Unless otherwise allowed by law or by the primary functions of his position, no elective local official shall hold
any other office or employment in the government or any subdivision, agency or instrumentality thereof,
including
GOCCs,
or
in
any
of
their
subsidiaries.
ARTICLE 81. Appointment of Candidates Who Lost in an Election. Except for losing candidates in
barangay elections, no candidate who lost in any election shall, within one (1) year after such election, be
appointed to any office in the government or any GOCCs or in any of their subsidiaries.
ARTICLE 82. Resignation. (a) Resignations of elective local officials shall be deemed effective only upon
acceptance
by
the
following
authorities:
(1) By the President, in the case of governors and vice governors, mayors and vice mayors of highly-urbanized
cities, independent component cities, and municipalities within MMA and other metropolitan political
subdivisions
as
may
be
created
by
law;
(2) By the governor, in the case of municipal mayors, municipal vice mayors, mayors and vice mayors of
component
cities;
(3)

By

(4)

By

the
the

sanggunian
city

or

concerned,
municipal

in

the

mayor,

case
in

the

of

sangguniang
case

of

members;

barangay

and

officials.

(b) The DILG shall be furnished copies of the resignation letters of elective local officials, together with the
action
taken
by
the
authorities
concerned.
(c) The resignation shall be deemed accepted if not acted upon by the authority concerned within fifteen (15)
working
days
from
receipt
thereof.
(d) Irrevocable resignations by sanggunian members shall be deemed accepted upon presentation before an
open session of the sanggunian concerned and duly entered in its records. This provision shall not apply to
sanggunian members who are subject to recall elections or to cases where existing laws prescribe the manner
of
acting
upon
such
resignations.

ARTICLE 83. Vacancies and Succession of Elective Local Officials. (a) What constitutes permanent
vacancy A permanent vacancy arises when an elective local official fills a higher vacant office, refuses to
assume office, fails to qualify, dies, is removed from office, voluntarily resigns, or is otherwise permanently
incapacitated
to
discharge
the
functions
of
his
office.
(b) Permanent vacancies in the offices of the governor, vice governor, mayor and vice mayor
(1) If a permanent vacancy occurs in the office of the governor or mayor, the vice governor or vice mayor
concerned shall ipso facto become the governor or mayor. If a permanent vacancy occurs in the offices of the
governor, vice governor, mayor, or vice mayor, the highest ranking sanggunian member or, in case of his
permanent inability, the second highest ranking sanggunian member, shall ipso facto become the governor,
vice governor, mayor or vice mayor, as the case may be. Subsequent vacancies in the said office shall be filled
automatically by the other sanggunian members according to their ranking as defined in this Article.
(2) Permanent vacancy in the office of the punong barangay If a permanent vacancy occurs in the office of
the punong barangay, the highest ranking sangguniang barangay member or, in case of his permanent
inability, the second highest ranking sanggunian member, shall ipso facto become the punong barangay.
(3) Resolution of ties A tie between or among the highest ranking sangguniang members shall be resolved by
drawing
of
lot.
(4) Term of successors The successors as defined in this Article shall serve only the unexpired terms of their
predecessors.
(5) Ranking in the sanggunian for purposes of succession Ranking in the sanggunian shall be determined on
the basis of the proportion of votes obtained by each winning candidate to the total number of registered
voters in each district in the immediately preceding local elections. For this purpose, the COMELEC shall,
within sixty (60) days from the last local elections, prepare a ranking of sanggunian members.
(c)

Permanent

vacancies

in

the

sanggunian

(1) Permanent vacancies not covered by automatic succession Permanent vacancies in the sanggunian
where automatic successions do not apply shall be filled by appointment in the following manner:
(i) By the President, through the Executive Secretary, in the case of the sangguniang panlalawigan, the
sangguniang panlungsod of highly-urbanized cities and independent component cities, and the sangguniang
bayan of municipalities within MMA and other metropolitan political subdivisions as may be created by law;
(ii) By the governor, in the case of the sangguniang panlungsod of component cities and the sangguniang
bayan;
(iii) By the city or municipal mayor, in the case of the sangguniang barangay, upon the recommendation of the
sangguniang
barangay
concerned.
(2)

Eligible

appointee

(i) Except for the sangguniang barangay, only the nominee of the political party under which the sanggunian
member concerned has been elected and whose elevation to the position next higher in rank created the last
vacancy in the sanggunian shall be appointed in the manner provided in this Article. The appointee shall come
from the same political party as that of the sanggunian member who caused the vacancy and shall serve the
unexpired
term
of
the
vacant
office.
(ii) For appointments made in accordance with the immediately preceding subparagraph (i), the appointing
authority shall see to it that a certificate of membership of the appointee and nomination from the highest
official of the political party concerned are conditions sine qua non, and any appointment without such
certification and nomination shall be null and void ab initio and shall be a ground for administrative action
against
the
official
responsible
therefore.
(3) Permanent vacancy caused by a sanggunian member not belonging to any political party. In case the
permanent vacancy is caused by a sanggunian member who does not belong to any political party, the local
chief executive shall, upon recommendation of the sanggunian concerned, appoint a person who possesses all
the qualifications and none of the disqualifications for the position, to fill the vacancy.
(4) Vacancy in the representation of the youth and the liga ng mga barangay in the sanggunian. In case of
vacancy in the representation of the youth and the liga ng mga barangay in the sanggunian, the vice president
or the official next-in-rank of the pederasyon ng mga sangguniang kabataan and the local chapter of the liga
ng
mga
barangay
concerned
shall
automatically
fill
up
said
vacancy.
(d)

Temporary

vacancy

in

the

office

of

the

local

chief

executive.

(1) Temporary incapacity When the governor, city or municipal mayor, or punong barangay is temporarily
incapacitated to perform his duties for physical or legal reasons such as, but not limited to, leave of absence,
travel abroad, and suspension from office, the vice governor, city or municipal vice mayor, or the highest
ranking sangguniang barangay member shall automatically exercise the powers and perform the duties and
functions of the local chief executive concerned, except the power to appoint, suspend, or dismiss employees
which can only be exercised if the period of temporary incapacity exceeds thirty (30) working days.
(2) Termination of temporary incapacity Temporary incapacity shall terminate upon submission to the
appropriate sanggunian of a written declaration by the local chief executive concerned that he has reported
back to office. In cases where the temporary incapacity is due to legal causes, the local chief executive
concerned shall also submit necessary documents showing that said legal causes no longer exist.
(3)

Temporary

vacancy

due

to

local

travel

(i) When the incumbent local chief executive is traveling within the country but outside his territorial
jurisdiction for a period not exceeding three (3) consecutive days, he may designate in writing the officer-incharge of the office of the local chief executive. Such authorization shall specify the powers and functions that
the local official concerned shall exercise in the absence of the local chief executive except the power to
appoint,
suspend
or
dismiss
employees.
(ii) In the event that the local chief executive concerned fails or refuses to issue such authorization, the vice

governor, the city or municipal vice mayor, as the case may be, shall have the right to assume the powers,
duties, and functions of the said office on the fourth (4th) day of absence of the said local chief executive,
subject to the limitations provided in the immediately preceding subparagraph (i).
(iii) Except as provided in this Article, the local chief executive shall in no case authorize any local official to
assume the powers, duties, and functions of the office, other than the vice governor, the city or municipal vice
mayor, or the highest ranking sangguniang barangay member, as the case may be.
ARTICLE 84. Leaves of Absence. (a) Leaves of absence of elective local officials shall be approved as
follows:
(1) Leaves of absence of governors and mayors of highly-urbanized cities, independent component cities, and
municipalities within MMA, shall be approved by the President or his duly authorized representative;
(2) Leaves of absence of vice governors or city or municipal vice mayors shall be approved by the local chief
executive
concerned;
(3) Leaves of absence of the members of the sanggunian and appointive employees therein shall be approved
by
the
vice
governor
or
city
or
municipal
vice
mayor
concerned;
(4) Leaves of absence of mayors of component cities or municipalities shall be approved by the governor;
(5) Leaves of absence of punong barangays shall be approved by the city or municipal mayor; and
(6) Leaves of absence of sangguniang barangay members shall be approved by the punong barangay.
(b) Whenever the application for leave of absence is not acted upon within five (5) working days after receipt
thereof, such application shall be deemed approved.
RULE XV
Powers, Duties, and Functions of Local Chief Executives
ARTICLE 85. Powers, Duties, and Functions of the Governor. (a) The governor, as the chief executive of the
province, shall exercise such powers and perform such duties and functions as provided by the Code and other
applicable
laws.
(b) For efficient, effective and economical governance the purpose of which is the general welfare of the
province and its inhabitants pursuant to Section 16 of the Code, the governor shall:
(1) Exercise general supervision and control over all programs, projects, services, and activities of the
province,
and
in
this
connection,
shall:
(i) Determine the guidelines of provincial policies and be responsible to the sangguniang panlalawigan for the
program
of
government;
(ii) Direct the formulation of the provincial development plan, with the assistance of the provincial

development council, and upon approval thereof by the sangguniang panlalawigan, implement the same;
(iii) Present the program of government and propose policies and projects for the consideration of the
sangguniang panlalawigan at the opening of the regular session of the sangguniang panlalawigan every
calendar year and as often as may be deemed necessary as the general welfare of the inhabitants and the needs
of
the
provincial
government
may
require;
(iv) Initiate and propose legislative measures to the sangguniang panlalawigan, and as often as may be deemed
necessary, provide such information and data needed or requested by said sanggunian in the performance of
its
legislative
functions;
(v) Appoint all officials and employees whose salaries and wages are wholly or mainly paid out of provincial
funds and whose appointments are not otherwise provided in the Code, as well as those he may be authorized
by
law
to
appoint;
(vi) Represent the province in all its business transactions and sign in its behalf all bonds, contracts, and
obligations, and such other documents upon authority of the sangguniang panlalawigan or pursuant to law or
ordinance;
(vii) Carry out such emergency measures as may be necessary during and in the aftermath of man-made and
natural
disasters
and
calamities;
(viii) Determine the time, manner, and place of payment of salaries or wages of the officials and employees of
the
province,
in
accordance
with
law
or
ordinance;
(ix) Allocate and assign office space to provincial and other officials and employees who, by law or ordinance,
are entitled to such space in the provincial capitol and other buildings owned or leased by the province;
(x) Ensure that all executive officials and employees of the province faithfully discharge their duties and
functions as provided by law and the Code, and cause to be instituted administrative or judicial proceedings
against any official or employee of the province who may have committed an offense in the performance of his
official
duties;
(xi) Examine the books, records and other documents of all offices, officials, agents or employees of the
province and, in aid of his executive powers and authority, require all national officials and employees
stationed in the province to make available to him such books, records, and other documents in their custody,
except
those
classified
by
law
as
confidential;
(xii) Furnish copies of executive orders issued by him to the Office of the President within seventy-two (72)
hours
after
their
issuance;
(xiii) Visit component cities and municipalities of the province at least once every six (6) months to deepen his
understanding of problems and conditions, listen and give appropriate counsel to local officials and
inhabitants, inform the officials and inhabitants of component cities and municipalities of general laws and
ordinances which especially concern them, and otherwise conduct visits and inspections to ensure that the
governance of the province will improve the quality of life of the inhabitants;

(xiv) Act on leave applications of officials and employees appointed by him and the commutation of the
monetary
value
of
leave
credits
in
accordance
with
law;
(xv) Authorize official trips of provincial officials and employees outside of the province for a period not
exceeding
thirty
(30)
days;
(xvi) Call upon any national official or employee stationed in or assigned to the province to advise him on
matters affecting the province and to make recommendations thereon; coordinate with said official or
employee in the formulation and implementation of plans, programs, and projects; and when appropriate,
initiate an administrative or judicial action against a national government official or employee who may have
committed an offense in the performance of his official duties while stationed in or assigned to the province;
(xvii) Authorize payment for medical care, necessary transportation, subsistence, hospital or medical fees of
provincial officials and employees who are injured while in the performance of their official duties and
functions,
subject
to
availability
of
funds,
(xviii) Represent the province in inter-provincial or regional sports councils or committees, and coordinate the
efforts of component cities or municipalities in the national or regional palaro or sports development activities;
(xix) Conduct an annual palarong panlalawigan, which shall feature traditional sports and disciplines included
in national and international games, in coordination with the Department of Education, Culture and Sports;
and
(xx) Submit to the Office of the President the following reports: an annual report containing a summary of all
matters pertinent to the management, administration and development of the province and all information
and data relative to its political, social and economic conditions; and supplemental reports when unexpected
events and situations arise at any time during the year, particularly when man-made or natural disasters or
calamities
affect
the
general
welfare
of
the
province,
region,
or
country;
(2) Enforce all laws and ordinances relative to the governance of the province and the exercise of the
appropriate corporate powers provided in Rule IX of these Rules, implement all approved policies, programs,
projects, services, and activities of the province and, in addition to the foregoing, shall:
(i) Ensure that the acts of the component cities and municipalities of the province and of their officials and
employees are within the scope of their prescribed powers, duties, and functions;
(ii) Call conventions, conference, seminars, or meetings of any elective and appointive officials of the province
and its component cities and municipalities, including national officials and employees stationed in or assigned
to the province, at such time and place and on such subject as he may deem important for the promotion of the
general
welfare
of
the
province
and
its
inhabitants;
(iii) Issue such executive orders for the faithful and appropriate enforcement and execution of laws and
ordinances;

(iv)

Be

entitled

to

carry

the

necessary

firearm

within

his

territorial

jurisdiction;

(v) In coordination with the mayors of component cities and municipalities and the National Police
Commission, formulate the peace and order plan of the province and upon its approval, implement the same in
accordance
with
RA
6975;
and
(vi) Call upon the appropriate national law enforcement agencies to suppress disorder, riot, lawless violence,
rebellion, or sedition or to apprehend violators of the law when public interest so requires, and the police
forces of the component city or municipality where the disorder or violation is happening are inadequate to
cope
with
the
situation
or
the
violators;
(3) Initiate and maximize the generation of resources and revenues, and apply the same to the implementation
of development plans, program objectives and priorities as provided in Rule XXX of these Rules, particularly
those resources and revenues programmed for agro-industrial development and countrywide growth and
progress
and,
relative
thereto,
shall:
(i) Require each head of an officer or department to prepare and submit an estimate or appropriations for the
ensuing calendar year, in accordance with the budget preparation process in Rule XXXIV of these Rules;
(ii) Prepare and submit to the sanggunian for approval the executive and supplemental budgets of the province
for the ensuing calendar year in the manner provided in Rule XXXIV of these Rules;
(iii) Ensure that all taxes and other revenues of the province are collected, and that provincial funds are
applied to the payment of expenses and settlement of obligations of the province, in accordance with law or
ordinance;
(iv) Issue licenses and permits and suspend or revoke the same for any violation of the conditions upon which
said
licenses
or
permits
had
been
issued,
pursuant
to
law
or
ordinance;
(v) Adopt adequate measures to safeguard and conserve land, mineral, marine, forest and other resources of
the province, in coordination with the mayors of component cities and municipalities; provide efficient and
effective property and supply management in the province; and protect the funds, credits, rights, and other
properties
of
the
province;
and
(vi) Institute or cause to be instituted administrative or judicial proceedings for violation of ordinances in the
collection of taxes, fees or charges, and for the recovery of funds and property; and cause the province to be
defended against all suits to ensure that its interests, resources and rights shall be adequately protected.
(4) Ensure the delivery of basic services and the provision of adequate facilities as provided in Rule V of these
Rules,
and
in
addition
thereto,
shall:
(i) Ensure that the construction and repair of roads and highways funded by the National Government shall,
as far as practicable, be carried out in a spatially contiguous manner and in coordination with the construction
and repair of the roads and bridges of the province and of its component cities and municipalities; and,
(ii) Coordinate the implementation of technical services by national offices for the province and its component

cities and municipalities, including public works and infrastructure programs of the provincial government
and
its
component
cities
and
municipalities.
(5) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
ARTICLE 86. Powers, Duties, and Functions of the City Mayor. (a) The city mayor, as chief executive of the
city, shall exercise such powers and perform such duties and functions as provided by the Code and other
applicable
laws.
(b) For efficient, effective and economical governance the purpose of which is the general welfare of the city
and its inhabitants pursuant to Section 16 of the Code, the city mayor shall:
(1) Exercise general supervision and control over all programs, projects, services, and activities of the city, and
this
connection,
shall:
(i) Determine the guidelines of city policies and be responsible to the sangguniang panlungsod for the program
of
government;
(ii) Direct the formulation of the city development plan, with the assistance of the city development council,
and upon approval thereof by the sangguniang panlungsod, implement the same;
(iii) Present the program of government and propose policies and projects for the consideration of the
sangguniang panlungsod at the opening of the regular session of the sangguniang panlungsod every calendar
year and as often as the general welfare of the inhabitants and the needs to the city may require;
(iv) Initiate and propose legislative measures to the sangguniang panlungsod and as often as may be deemed
necessary, provide such information and data needed or requested by said sanggunian in the performance of
its
legislative
functions;
(v) Appoint all officials and employees whose salaries and wages are wholly or mainly paid out of city funds as
whose appointments are not otherwise provided under the Code, as well as those he may be authorized by law
to
appoint;
(vi) Represent the city in all its business transactions and sign in its behalf all bonds, contracts, and obligations,
and such other documents upon authority of the sangguniang panlungsod or pursuant to law or ordinance;
(vii) Carry out such emergency as may be necessary during and in the aftermath of man-made and natural
disasters
or
calamities;
(viii) Determine the time, manner, and place of payment of salaries or wages of the officials and employees of
the
city,
in
accordance
with
law
or
ordinance;
(ix) Allocate and assign office space to city and other officials and employees who, by law or ordinance, are
entitled to such space in the city hall and other buildings owned or leased by the city;

(x) Ensure that all executive officials and employees of the city faithfully discharge their duties and functions
as provided by law and the Code, and cause to be instituted administrative or judicial proceedings against any
official or employee of the city who may have committed an offense in the performance of his official duties;
(xi) Examine the books, records and other documents of all offices, officials, agents, or employees of the city
and, in aid of his executive powers and authority, require all national officials and employees stationed in or
assigned to the city to make available to him such books, records, and other documents in their custody, except
those
classified
by
law
as
confidential;
(xii) Furnish copies of executive orders issued by him, to the governor in the case of component city mayors, to
the Office of the President in the case of highly-urbanized city mayors, and to their respective metropolitan
council chairmen in the case of mayors of cities within MMA and other metropolitan political subdivisions as
may
be
created
by
law,
within
seventy-two
(72)
hours
after
their
issuance;
(xiii) Visit barangays of the city at least once every six (6) months to deepen his understanding of problems and
conditions, listen and give appropriate counsel to local officials and inhabitants, inform the barangay officials
and inhabitants of general laws and ordinances which especially concern them, and otherwise conduct visits
and inspections to ensure that the governance of the city will improve the quality of life of the inhabitants;
(xiv) Act on leave applications of officials and employees appointed by him and the commutation of the
monetary
value
of
their
leave
credits
in
accordance
with
law;
(xv) Authorize official trips of city officials and employees outside of the city for a period not exceeding thirty
(30)
days;
(xvi) Call upon any national official or employee stationed in or assigned to the city to advise him on matters
affecting the city and to make recommendations thereon; coordinate with said official or employee in the
formulation and implementation of plans, programs and projects; and, when appropriate, initiate an
administrative or judicial action against a National Government official or employee who may have committed
an offense in the performance of his official duties while stationed in or assigned to the city;
(xvii) Authorize payment for medical care, necessary transportation, subsistence, hospital, or medical fees of
city officials and employees who are injured while in the performance of their official duties and functions,
subject
to
availability
of
funds;
(xviii) Solemnize marriages, any provision of law to the contrary notwithstanding;
(xix) Conduct an annual palarong panlungsod, which shall feature traditional sports and disciplines included
in national and international games, in coordination with the Department of Education, Culture and Sports;
and
(xx) Submit to the governor, in the case of component cities; to the Office of the President, in the case of highlyurbanized cities; to the Metropolitan Manila Council chairman and to the Office of the President, in the case
of cities of the MMA and other metropolitan political subdivisions as may be created by law, the following
reports: an annual report containing a summary of all matters pertinent to the management, administration
and development of the city and all information and data relative to its political, social and economic
conditions; and supplemental reports when unexpected events and situations arise at any time during the year,

particularly when unexpected events and situations arise at any time during the year, particularly when manmade or natural disasters or calamities affect the general welfare of the country, region, province, or city.
(2) Enforce all laws and ordinances relative to the governance of the city and in the exercise of the appropriate
corporate powers provided in Rule IX of these Rules, implement all approved policies, programs, projects,
services,
and
activities
of
the
city
and,
in
addition
thereto,
shall:
(i) Ensure that the acts of the city's barangays and of their officials and employees are within the scope of their
prescribed
powers,
duties,
and
functions;
(ii) Call conventions, conferences, seminars, or meetings of any elective and appointive officials of the city,
including provincial officials and national officials and employees stationed in or assigned to the city, at such
time and place and on such subject as he may deem important for the promotion of the general welfare of
LGU
and
its
inhabitants;
(iii) Issue such executive orders for the faithful and appropriate enforcement and execution of laws and
ordinances;
(iv)

Be

entitled

to

carry

the

necessary

firearm

within

his

territorial

jurisdiction;

(v) Act as the deputized representative of the National Police Commission, formulate the peace and order plan
of the city and upon its approval, implement the same; and as such representative, exercise general and
operational control and supervision over the local police forces in the city, in accordance with RA 6975; and
(vi) Call upon the appropriate law enforcement agencies to suppress disorder, riot, lawless violence, rebellion,
or sedition, or to apprehend violators of the law when public interest so requires and the city police forces are
inadequate
to
cope
with
the
situation
or
the
violators.
(3) Initiate and maximize the generation of resources and revenues, and apply the same to the implementation
of development plans, program objectives and priorities as provided in Section 18 of the Code, particularly
those resources and revenues programmed for agro-industrial development countryside growth and progress
and,
relative
thereto,
shall:
(i) Require each head of an office or department to prepare and submit an estimate of appropriations for the
ensuing calendar year, in accordance with the budget preparations process under Rule XXXIV of these Rules;
(ii) Prepare and submit to the sanggunian for approval the executive and supplemental budgets of the city for
the ensuing calendar year in the manner provided for under Rule XXXIV of these Rules;
(iii) Ensure that all taxes and other revenues of the city are collected, and that city funds are applied to the
payment of expenses and settlement of obligations of the city, in accordance with law or ordinance;
(iv) Issue licenses and permits and suspend or revoke the same for any violation of the conditions upon which
said
licenses
or
permits
had
been
issued,
pursuant
to
law
or
ordinance;
(v) Issue permits, without need of approval therefore from any national agency, for the holding of activities for

any charitable or welfare purpose, excluding prohibited games of chance or shows contrary to law, public
policy
and
public
morals;
(vi) Require owners of illegally constructed houses, buildings, or other structures to obtain the necessary
permit, subject to such fines and penalties as may be imposed by law or ordinance, or to make necessary
changes in the construction of the same when said construction violates any law or ordinance, or to order the
demolition or removal of said house, building, or structure within the period prescribed by law or ordinance;
(vii) Adopt adequate measures to safeguard and conserve land, mineral, marine, forest, and other resources of
the city; provide efficient and effective property and supply management in the city; and protect the funds,
credits,
rights,
and
other
property
of
the
city;
and
(viii) Institute or cause to be instituted administrative or judicial proceedings for violation of ordinances in the
collection of taxes, fees, or charges, and for the recovery of funds and property; and to cause the city to be
defended against all suits to ensure that its interests, resources, and rights shall be adequately protected.
(4) Ensure the delivery of basic services and the provision of adequate facilities as provided in Rule V of these
Rules,
in
addition
thereto,
shall:
(i) Ensure that the construction and repair of roads and highways funded by the National Government shall,
as far as practicable, be carried out in a spatially contiguous manner and in coordination with the construction
and repair of the roads and bridges of the city, and in the case of component cities, of the city and of the
province;
and
(ii) Coordinate the implementation of technical services, including public works and infrastructure programs,
rendered by NGAs in the case of highly urbanized and independent component cities, and by national and
provincial
offices
in
the
case
of
component
cities.
(5) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
ARTICLE 87. Powers, Duties, and Functions of the Municipal Mayor. (a) The municipal mayor, as the chief
executive of the municipal government, shall exercise such powers and perform such duties and functions as
provided
by
the
Code
and
other
applicable
laws.
(b) For efficient, effective and economical governance the purpose of which is the general welfare of the
municipality and its inhabitants pursuant to Section 16 of the Code, the municipal mayor shall:
(1) Exercise general supervision and control over all programs, projects, services, and activities of the
municipality,
and
in
this
connection,
shall:
(i) Determine the guidelines of municipal policies and be responsible to the sangguniang bayan for the
program
of
government;
(ii) Direct the formulation of the municipal development plan, with the assistance of the municipal
development council, and upon approval thereof by the sangguniang bayan, implement the same;

(iii) At the opening of the regular session of the sangguniang bayan for every calendar year and, as may be
deemed necessary, present the program of government and propose policies and projects for the consideration
of the sangguniang bayan as the general welfare of the inhabitants and the needs of the municipal government
may
require;
(iv) Initiate and propose legislative measures to the sangguniang bayan and, from time to time as the situation
may require, provide such information and data needed or requested by said sanggunian in the performance
of
its
legislative
functions;
(v) Appoint all officials and employees whose salaries and wages are wholly or mainly paid out of municipal
funds and whose appointments are not otherwise provided for in the Code, as well as those he may be
authorized
by
law
to
appoint;
(vi) Upon authorization by the sangguniang bayan, represent the municipality in all its business transactions
and sign on its behalf all bonds, contracts, and obligations, and such other documents made pursuant to law or
ordinance;
(vii) Carry out such emergency measures as may be necessary during and if the aftermath of man-made and
natural
disasters
and
calamities;
(viii) Determine, according to law or ordinance, the time, manner and place of payment of salaries or wages of
the
officials
and
employees
of
the
municipality;
(ix) Allocate and assign office space to municipal and other officials and employees who, by law or ordinance,
are entitled to such space in the municipal hall and other buildings owned or leased by the municipality;
(x) Ensure that all executive officials and employees of the municipality faithfully discharge their duties and
functions as provided by law and the Code, and cause to be instituted administrative or judicial proceedings
against any official or employee of the municipality who may have committed an offense in the performance of
his
official
duties;
(xi) Examine the books, records and other documents of all offices, officials, agents employees of the
municipality and in aid of his executive powers and authority, require all national officials and employees
stationed in or assigned to the municipality to make available to him such books, records, and other documents
in
their
custody,
except
those
classified
by
law
as
confidential;
(xii) Furnish copies of executive orders issued by him to the governor within seventy-two (72) hours after their
issuance provided that municipalities of MMA and that of any metropolitan political subdivision, as may be
created by law, shall furnish copies of said executive orders to the metropolitan authority council chairman
and
to
the
Office
of
the
President;
(xiii) Visit barangays of the municipality at least once every six (6) months to deepen his understanding of
problems and conditions therein, listen and give appropriate counsel to local officials and inhabitants, inform
the barangay officials and inhabitants of general laws and ordinances which especially concern them, and
otherwise conduct visits and inspections to the end that the governance of the municipality will improve the

quality

of

the

life

of

the

inhabitants;

(xiv) Act on leave applications of officials and employees appointed by him and the commutation of the
monetary
value
of
leave
credits
according
law;
(xv) Authorize official trips outside of the municipality of municipal officials and employees for a period not
exceeding
thirty
(30)
days;
(xvi) Call upon any national official or employee stationed in or assigned to the municipality to advise him on
matters affecting the municipality and to make recommendations thereon, or to coordinate in the formulation
and implementation of plans, programs and projects, and when appropriate, initiate an administrative or
judicial action against national government official or employee who may have committed an offense in the
performance of his official duties while stationed in or assigned to the municipality concerned;
(xvii) Subject to availability of funds, authorize payment of medical care, necessary transportation,
subsistence, hospital or medical fees of municipal officials and employees who are injured while in the
performance
of
their
official
duties
and
functions;
(xviii)

Solemnize

marriages,

any

provision

of

law

to

the

contrary

notwithstanding;

(xix) Conduct a palarong bayan, in coordination with the Department of Education, Culture and Sports, as
annual activity which shall feature traditional sports and disciplines included in national and international
games;
and
(xx) Submit to the provincial governor the following reports: an annual report containing a summary of all
matters pertaining to the management, administration and development of the municipality and all
information and data relative to its political, social and economic conditions; and supplemental reports when
unexpected events and situations arise at any time during the year, particularly when man-made or natural
disasters or calamities affect the general welfare of the municipality, province, region or country. Mayors of
municipalities of the MMA and other metropolitan political subdivisions, as may be created by law, shall
submit said reports to their respective metropolitan council chairmen and to the Office of the President.
(2) Enforce all laws and ordinances relative to the governance of the municipality and the exercise of its
corporate powers provided in Rule IX of these Rules, implement all approved policies, programs, projects,
services
and
activities
of
the
municipality
and,
in
addition,
shall:
(i) Ensure that the acts of the municipality's barangays and of their officials and employees are within the
scope
of
their
prescribed
powers,
functions,
duties
and
responsibilities;
(ii) Call conventions, conferences, seminars or meetings of any elective and appointive officials of the
municipality, including provincial officials and national officials and employees stationed in or assigned to the
municipality at such time and place and on such subject as he may deem important for the promotion of the
general
welfare
of
the
municipality
and
its
inhabitants;
(iii) Issue such executive orders as are necessary for the proper enforcement and execution of laws and
ordinances;

(iv)

Be

entitled

to

carry

the

necessary

firearm

within

his

territorial

jurisdiction;

(v) Act as the deputized representative of the National Police Commission, formulate the peace and order plan
of the municipality and upon its approval, implement the same and exercise general and operational control
and supervision over the local police forces in the municipality in accordance with RA 6975;
(vi) Call upon the appropriate law enforcement agencies to suppress disorder, riot, lawless violence, rebellion
or sedition or to apprehend violators of the law when public interest so requires, and the municipal police
forces
are
inadequate
to
cope
with
the
situation
or
the
violators.
(3) Initiate and maximize the generation of resources and revenues, and apply the same to the implementation
of development plans, program objectives and priorities as provided under these Rules, particularly those
resources and revenues programmed for agro-industrial development and countrywide growth and progress,
and
relative
thereto,
shall:
(i) Require each head of an office or department to prepare and submit an estimate of appropriations for the
ensuing calendar year, in accordance with the budget preparation process in Rule XXXIV of these Rules;
(ii) Prepare and submit to the sanggunian for approval the executive and supplemental budgets of the
municipality for the ensuing calendar year in the manner provided in Rule XXXIV of these Rules;
(iii) Ensure that all taxes and other revenues of the municipality are collected, and that municipal funds are
applied in accordance with law or ordinance to the payment of expenses and settlement of obligations of the
municipality;
(iv) Issue licenses and permits and suspend or revoke the same for any violation of the conditions upon which
said
licenses
or
permits
had
been
issued,
pursuant
to
law
or
ordinance;
(v) Issue permits, without need of approval therefore from any NGA, for the holding of activities for any
charitable or welfare purpose, excluding prohibited games of chance or shows contrary to law, public policy
and
public
morals;
(vi) Require owners of illegally constructed houses, buildings, or other structures to obtain the necessary
permit, subject to such fines and penalties as may be imposed by law or ordinance, or to make necessary
changes in the construction of the same when said construction violates any law or ordinance, or to order the
demolition or removal of said house, building, or structure within the period prescribed by law or ordinance;
(vii) Adopt adequate measures to safeguard and conserve land, mineral, marine, forest, and other resources of
the municipality; provide efficient and effective supply and property management in the municipality; and
protect the funds, credits, rights and other properties of the municipality; and
(viii) Institute or cause to be instituted administrative or judicial proceedings for violation of ordinances in the
collection of taxes, fees or charges, and for the recovery of funds and property; and cause the municipality to
be defended against all suits to ensure that its interests, resources and rights shall be adequately protected.

(4) Ensure the delivery of basic services and the provision of adequate facilities as provided in Rule V of these
Rules
and,
in
addition
thereto,
shall:
(i) Ensure that the construction and repair of roads and highways funded by the National Government shall,
as far as practicable, be carried out in a spatially contiguous manner and in coordination with the construction
and repair of the roads and bridges of the municipality and the province; and
(ii) Coordinate the implementation of technical services rendered by national and provincial offices, including
the
public
works
and
infrastructure
programs
in
the
municipality.
(5) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
ARTICLE 88. Powers, Duties, and Functions of the Punong Barangay. (a) The punong barangay, as the
chief executive of the barangay, shall exercise such powers and perform such duties and functions, as provided
by
the
Code
and
other
laws.
(b) For efficient, effective and economical governance, the purpose of which is the general welfare of the
barangay and its inhabitants pursuant to Section 16 of the Code, the punong barangay shall:
(1)

Enforce

all

laws

and

ordinances

which

are

applicable

within

the

barangay;

(2) Negotiate, enter into, and sign contracts for and in behalf of the barangay, upon authorization of the
sangguniang
barangay;
(3) Maintain public order in the barangay and, in pursuance thereof, assist the city or municipal mayor and
the
sanggunian
members
in
the
performance
of
their
duties
and
functions;
(4) Call and preside over the sessions of the sangguniang barangay and the barangay assembly, and vote only
to
break
a
tie;
(5) Upon approval by a majority of all the members of the sangguniang barangay, appoint or replace the
barangay treasurer, the barangay secretary, and other appointive barangay officials;
(6) Organize and lead an emergency group whenever the same may be necessary for the maintenance of peace
and
order
or
on
occasions
of
emergency
or
calamity
within
the
barangay;
(7) In coordination with the barangay development council, prepare the annual executive and supplemental
budgets
of
the
barangay;
(8)

Approve

vouchers

relating

to

the

disbursement

of

barangay

funds;

(9) Enforce laws and regulations relating to pollution control and protection of the environment;
(10) Administer the operation of the katarungang pambarangay in accordance with the provisions of the Code;

(11)

Exercise

(12)

Ensure

general
the

supervision

delivery

of

basic

over

the

services

activities
as

of

mandated

the
in

sangguniang

Rule

of

kabataan;

these

Rules;

(13) Conduct an annual palarong barangay which shall feature traditional sports and disciplines included in
national and international games, in coordination with the Department of Education, Culture and Sports;
(14)

Promote

the

general

welfare

of

the

barangay;

and

(15) Exercise such other powers and perform such other duties and functions as may be prescribed by law of
ordinance.
(c) In the performance of his peace and order functions, the punong barangay shall be entitled to possess and
carry the necessary firearm within his territorial jurisdiction, subject to appropriate rules and regulations.
RULE XVI
Powers, Duties, and Functions of Vice Governors,
City and Municipal Vice Mayors
ARTICLE 89. Powers, Duties, and Functions of the Vice Governor. The vice governor shall:
(a) Be the presiding officer of the sangguniang panlalawigan and sign all warrants drawn on the provincial
treasury for all expenditures appropriated for the operation of the sangguniang panlalawigan;
(b) Appoint all officials and employees of the sangguniang panlalawigan, except those whose manner of
appointment is specifically provided under these Rules, subject to civil service law, rules and regulations;
(c) Assume the office of the governor for the unexpired term of the latter in the event of permanent vacancy as
provided
under
these
Rules;
and
(d) Exercise the powers and perform the duties and functions of the governor in cases of temporary vacancy as
provided
under
these
Rules.
ARTICLE 90. Powers, Duties, and Functions of the City Vice Mayor. The city vice mayor shall:
(a) Be the presiding officer of the sangguniang panlungsod and sign all warrants drawn on the city treasury for
all
expenditures
appropriated
for
the
operation
of
the
sangguniang
bayan;
(b) Appoint all officials and employees of the sangguniang bayan, except those whose manner of appointment
is specifically provided under these Rules, subject to civil service law, rules and regulations;
(c) Assume the office of the city mayor for the unexpired term of the latter in the event of permanent vacancy
as
provided
under
these
Rules.
ARTICLE 91. Powers, Duties, and Functions of the Municipal Vice Mayor. The municipal vice mayor shall:

(a) Be the presiding officer of the sangguniang bayan and sign all warrants drawn on the municipal treasury
for all
expenditures
appropriated
for the
operation
of
the
sangguniang
bayan;
(b) Appoint all officials and employees of the sangguniang bayan, except those whose manner of appointment
is specifically provided under these Rules, subject to civil service law, rules and regulations;
(c) Assume the office of the municipal mayor for the unexpired term of the latter in the event of permanent
vacancy
as
provided
under
these
Rules;
and
(d) Exercise the powers and perform the duties and functions of the municipal mayor in cases of temporary
vacancy as provided under these Rules.
RULE XVII
Local Legislative Bodies and Local Legislation
ARTICLE 92. Local Legislative Bodies. Local legislative power shall be exercised by the following
legislative
bodies
of
the
LGUs:
(a)
(b)
(c)
(d)
ARTICLE

Sangguniang

panlalawigan

Sangguniang
Sangguniang

panlungsod
bayan

Sangguniang
93.

for
for

for

the

barangay

Composition.

the

for
(a)

province;

the

city;

municipality;
the

Sangguniang

and
barangay.

panlalawigan

(1) The sangguniang panlalawigan shall be composed of the vice governor as the presiding officer, the regular
sangguniang members, the president of the provincial chapter of the liga ng mga barangay, the president of the
panlalawigang pederasyon ng mga sangguniang kabataan, the president of the provincial federation of
sanggunian members of municipalities and component cities, and the sectoral representatives, as members.
(2) There shall be one (1) sectoral representative from the women, one (1) from the workers, and one (1) from
any of the following sectors: the urban poor, indigenous cultural communities, disabled persons, or any other
sector as may be determined by the sanggunian concerned within ninety (90) days prior to the holding of the
next
local
elections,
as
may
be
provided
by
law.
(b)

Sangguniang

panlungsod

(1) The sangguniang panlungsod shall be composed of the city vice mayor as the presiding officer, the regular
sangguniang members, the president of the city chapter of the liga ng mga barangay, the president of the
panlungsod na pederasyon ng mga sangguniang kabataan, and the sectoral representatives, as members.
(2) There shall be one (1) sectoral representative from the women, one (1) from the workers, and one (1) from

any of the following sectors: the urban poor, indigenous cultural communities, disabled persons, or any other
sector as may be determined by the sanggunian concerned within ninety (90) days prior to the holding of the
next
local
elections,
as
may
be
provided
by
law.
(c)

Sangguniang

bayan

(1) The sangguniang bayan shall be composed of the municipal vice mayor as presiding officer, the regular
sanggunian members, the president of the municipal chapter of the liga ng mga barangay, the president of the
pambayang pederasyon ng mga sangguniang kabataan, and the sectoral representatives, as members.
(2) There shall be one (1) sectoral representative from the women, one (1) from the workers, and one (1) from
any of the following sectors: the urban poor, indigenous cultural communities, disabled persons, or any other
sector as may be determined by the sanggunian concerned within ninety (90) days prior to the holding of the
next
local
elections,
as
may
be
provided
by
law.
(d) Sangguniang barangay The sangguniang barangay shall be composed of the punong barangay as
presiding officer, and the seven (7) regular sangguniang barangay members elected at large, and sangguniang
kabataan
chairman,
as
members.
ARTICLE 94. Manner of Election and Number of Elective Sanggunian Members. (a) Sangguniang
panlalawigan

(1) For provinces with two (2) or more legislative districts, the elective members of the sangguniang
panlalawigan shall be elected by legislative districts. For this purpose, they shall be apportioned equitably
provided that if equal division is not possible, the remaining member or members shall be elected in the
district or districts with the greater number of population or, if they be the same, with the greater number of
voters; and provided further, that if a legislative district comprises an independent component city such that
an equal distribution of sanggunian members does not result in equitable apportionment on the basis of
population of the province, the COMELEC shall allocate the number among the districts in proportion to the
population or constituencies voting for the members of the sangguniang panlalawigan.
(2) For provinces with only one (1) representative district, the COMELEC shall divide the members into to (2)
districts for purposes of provincial representation as nearly as practicable according to the number of
inhabitants. Each district comprising a compact, contiguous and adjacent territory, and the number of elective
members of their respective sanggunians shall be equitably apportioned between the districts in accordance
with the standard or formula provided in the immediately preceding subparagraph (1).
(3) First and second class provinces shall each have ten (10) elective members; third and fourth class
provinces, eight (8); and fifth and sixth class provinces, six (6) to be elected at large by the qualified voters
therein.
(b)

Sangguniang

panlungsod

(1) For purposes of the regular elections on May 11, 1992, elective members of the sangguniang panlungsod
shall be elected at large in accordance with existing laws. Beginning with the regular elections in 1995, said
members
shall
be
elected
by
district.

(2) The number and election of elective members of the sangguniang panlungsod in the MMA, City of Cebu,
City of Davao and any other city with two (2) or more legislative districts shall continue to be governed by the
provisions of Sections 2 and 3 of RA 6636, as amended, to wit:
"SECTION 2. Metro Manila Area. . . . the City of Manila, Quezon City and the City of Caloocan shall have
six (6) councilors for each of their representative districts who shall be residents thereof to be elected by the
qualified voters therein. The City of Pasay ... which comprises a representative district, shall have twelve (12)
councilors ... to be elected at large by the qualified voters of the said city . . ."
"SECTION 3. Other Cities. . . . The City of Cebu, City of Davao, and any other city with more than one
representative district shall have eight (8) councilors for each district who shall be residents thereof to be
elected by the qualified voters therein, provided that the cities of Cagayan de Oro, Zamboanga, Bacolod, Iloilo
and other cities comprising a representative district shall have twelve (12) councilors each and all other cities
shall have ten (10) councilors each to be elected at large by the qualified voters of the said cities provided that
in no case shall the present number of councilors according to their charters be reduced."
(c)

Sangguniang

bayan

(1) For purposes of the regular elections on May 11, 1992, elective members of the sangguniang bayan shall be
elected at large in accordance with RA 6636. Beginning with the regular elections in 1995, they shall be elected
by
district.
(2) The number and election of elective members of the sangguniang bayan of the municipalities in the MMA
shall be governed by the provisions of Section 2 of RA 6636, as amended, to wit:
"SECTION 2. Metro Manila Area. . . . The municipalities of Makati, Paraaque, Pasig, Marikina, and
Valenzuela, each of which comprises a representative district, shall have twelve (12) councilors each to be
elected at large by the qualified voters of the said . . . municipalities. All the other municipalities within the
Metropolitan Manila Area shall have ten (10) councilors each, with the exception of the municipality of Pateros
which shall have eight (8) councilors, to be elected at large by their respective qualified voters."
(3) All municipalities shall have eight members to be elected at large by the qualified voters therein.
(d)

Sangguniang

barangay

(1) The sangguniang barangay members shall be elected at large in their respective barangays by the qualified
voters
therein.
(2) The sangguniang kabataan chairman for each barangay shall be elected by the registered voters of the
katipunan
ng
kabataan,
as
provided
in
Rule
XXVII
of
these
Rules.
ARTICLE 95. Manner of Election of Sectoral Representatives in the Sanggunian. The COMELEC shall
promulgate rules and regulations to effectively provide for the election of sectoral representatives in the
sangguniang
panlalawigan,
sangguniang
panlungsod,
and
sangguniang
bayan.
ARTICLE 96. Term of Office. The term of office of sanggunian members is provided under Rule XIV of

these

Rules.

ARTICLE 97. Compensation and Other Benefits. Compensation and other benefits of sanggunian members
are
provided
in
Rule
XIV
of
these
Rules.
ARTICLE 98. Powers, Duties, and Functions of the Sangguniang Panlalawigan. (a) The sangguniang
panlalawigan, as the legislative body of the province, shall enact ordinances, approve resolutions and
appropriate funds for the general welfare of the province and its inhabitants pursuant to Section 16 of the
Code and in the proper exercise of the corporate powers of the province as provided in Rule IX of these Rules,
and
shall:
(1) Approve ordinances and pass resolutions necessary for an efficient and effective provincial government and
shall:
(i) Review all ordinances approved by the sanggunians of component cities and municipalities and executive
orders issued by the mayors of said component units to determine whether these are within the scope of the
prescribed
powers
of
the
sanggunian
and
of
the
mayor;
(ii) Maintain peace and order by enacting measures to prevent and suppress lawlessness, disorder, riot,
violence, rebellion, or sedition and impose penalties for the violation of said ordinances;
(iii) Approve ordinances imposing imprisonment not exceeding one (1) year or a fine not exceeding Five
Thousand Pesos (P5,000.00) or both imprisonment and fine at the discretion of the court, for violation of a
provincial
ordinance;
(iv) Adopt measures to protect the inhabitants of the province from the harmful effects of man-made or
natural disasters and calamities, and to provide relief services and assistance for victims during and in the
aftermath of said disasters and calamities and their return to productive livelihood following said events;
(v) Enact ordinances intended to prevent, suppress and impose appropriate penalties for habitual drunkenness
in public places, vagrancy, mendicancy, prostitution, establishment and maintenance of houses of ill repute,
gambling and other prohibited games of chance, fraudulent devices and ways to obtain money or property,
drug addiction, maintenance of drug dens, drug pushing, juvenile delinquency, the printing, distribution or
exhibition of obscene or pornographic materials or publications, and such other activities inimical to the
welfare
and
morals
of
the
inhabitants
of
the
province;
(vi) Protect the environment and impose appropriate penalties for acts which endanger the environment, such
as dynamite fishing and other forms of destructive fishing, illegal logging and smuggling of logs, smuggling of
natural resources products and of endangered species of flora and fauna, slash and burn farming, and such
other activities which result in pollution, acceleration of eutrophication of rivers and lakes, or of ecological
imbalance;
(vii) Subject to the provisions of the Code and applicable laws, determine the powers and duties of officials and
employees
of
the
province;
(viii) Determine the positions and the salaries, wages, allowances and other emoluments and benefits of

officials and employees paid wholly or mainly from provincial funds and provide for expenditures necessary
for the proper conduct of programs, projects, services, and activities of the provincial government;
(ix) Authorize the payment of compensation to a qualified person not in the government service who fills up a
temporary vacancy, or grant honorarium to any qualified official or employee designated to fill a temporary
vacancy
in
a
concurrent
capacity,
at
the
rate
authorized
by
law;
(x) Provide a mechanism and the appropriate funds therefore, to ensure the safety and protection of all
provincial government property, public documents, or records such as those relating to property inventory,
land ownership, records of births, marriages, deaths, assessments, taxation, accounts, business permits, and
such other records and documents of public interest in the offices and departments of the provincial
government;
and
(xi) When the finances of the provincial government allow, provide for additional allowances and other
benefits to judges, prosecutors, public elementary and high school teachers, and other national government
officials
stationed
or
assigned
to
the
province.
(2) Generate and maximize the use of resources and revenues for the development plans, program objectives
and priorities of the province as provided in Section 18 of the Code, with particular attention to agroindustrial development and countrywide growth and progress and relative thereto, shall:
(i) Enact the annual and supplemental appropriations of the provincial government and appropriate funds for
specific programs, projects, services and activities of the province, or for other purposes not contrary to law, in
order
to
promote
the
general
welfare
of
the
province
and
its
inhabitants;
(ii) Subject to the provisions of Book II of the Code and applicable laws and upon the majority vote of the
members of the sangguniang panlalawigan, enact ordinances levying taxes, fees and charges, prescribing the
rates thereof for general and specific purposes, and granting tax exemptions, incentives or reliefs;
(iii) Subject to the provisions of Book II of the Code and applicable laws and upon a majority vote of all the
members of the sangguniang panlalawigan, authorize the provincial governor to negotiate and contract loans
and
other
forms
of
indebtedness;
(iv) Subject to the provisions of Book II of the Code and applicable laws and upon a majority vote of all the
members of the sangguniang panlalawigan, enact ordinances authorizing the floating of bonds or other
instruments of indebtedness, for the purpose of raising funds to finance development projects;
(v) Appropriate funds
province; and upon a
provincial governor to
applicable

for the construction and maintenance or the rental of buildings for the use of the
majority vote of all the members of the sangguniang panlalawigan, authorize the
lease to private parties such public buildings held in a propriety capacity, subject to
laws,
rules
and
regulations;

(vi) Prescribe reasonable limits and restraints on the use of property within the jurisdiction of the province;
(vii) Review the comprehensive land use plans and zoning ordinances of component cities and municipalities
and adopt a comprehensive provincial land use plan, subject to applicable laws; and

(viii) Adopt measures to enhance the full implementation of the national agrarian reform program in
coordination
with
the
Department
of
Agrarian
Reform;
(3) Subject to the provisions of Book II of the Code, grant franchises, approve the issuance of permits or
licenses, or enact ordinances levying taxes, fees and charges upon such conditions and for such purposes
intended to promote the general welfare of the inhabitants of the province, and pursuant to this legislative
authority,
shall:
(i) Fix and impose reasonable fees and charges for all services rendered by the provincial government to
private
persons
or
entities;
and
(ii)

Regulate

and

fix

the

license

fees

for

such

activities

as

provided

under

the

Code.

(4) Approve ordinances which shall ensure the efficient and effective delivery of the basic services and facilities
as provided under Rule V of these Rules, and, in addition to said services and facilities, shall:
(i) Adopt measures and safeguards against pollution and for the preservation of the natural ecosystem in the
province, in consonance with approved standards on human settlements and environmental sanitation;
(ii) Subject to applicable laws, facilitate or provide for the establishment and maintenance of a waterworks
systems or district waterworks for supplying water to inhabitants of component cities and municipalities;
(iii) Subject to the availability of funds and to applicable laws, rules and regulations, provide for the
establishment and operation of vocational and technical schools and similar post-secondary institutions; and,
with the approval of the Department of Education, Culture and Sports and subject to existing laws on tuition
fees, fix reasonable tuition fees and other school charges in educational institutions supported by the provincial
government;
(iv) Establish a scholarship fund for the poor but deserving students in schools located within its jurisdiction
or
for
students
residing
within
the
province;
(v) Approve measures and adopt quarantine regulations to prevent the introduction and spread of diseases
within
its
territorial
jurisdiction;
(vi) Provide for the care of paupers, the aged, the disabled, the sick, persons of unsound mind, abandoned
minors, abused children, juvenile delinquents, drug dependents, and other needy and disadvantaged persons,
particularly children and youth below eighteen (18) years of age; subject to availability of funds, establish and
support the operation of centers and facilities for said needy and disadvantaged persons; and facilitate efforts
to promote the welfare of families below the poverty threshold, the disadvantaged, and the exploited;
(vii) Establish and provide for the maintenance and improvement of jails and detention centers, institute a
sound jail management program, and appropriate funds for the subsistence of detainees and convicted
prisoners
in
the
province;
(viii) Establish a provincial council whose purpose is the promotion of culture and the arts, coordinate with

government agencies and non-governmental organizations and, subject to the availability of funds,
appropriate
funds
for
the
support
and
development
of
the
same;
(ix) Establish a provincial council for the elderly which shall formulate policies and adopt measures mutually
beneficial to the elderly and to the province; and subject to the availability of funds, appropriate funds to
support programs and projects for the elderly; and provide incentives for NGOs to support the programs and
projects
of
the
elderly;
and
(5) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
ARTICLE 99. Powers, Duties, and Functions of the Sangguniang Panlungsod. (a) The sangguniang
panlungsod, as the legislative body of the city, shall enact ordinances, approve resolutions and appropriate
funds for the general welfare of the city and its inhabitants pursuant to Section 16 of the Code and in the
proper exercise of the corporate powers of the city as provided in Rule IX of these Rules, and shall:
(1) Approve ordinances and pass resolutions necessary for an efficient and effective city government, and
relative
thereto,
shall:
(i) Review all ordinances approved by the sangguniang barangay and executive orders issued by the punong
barangay to determine whether these are within the scope of the prescribed powers of the sanggunian and of
the
punong
barangay;
(ii) Maintain peace and order by enacting measures to prevent and suppress lawlessness, disorder, riot,
violence, rebellion or sedition and impose penalties for the violation of said ordinances;
(iii) Approve ordinances imposing imprisonment not exceeding one (1) year or a fine not exceeding Five
Thousand Pesos (P5,000.00) or both imprisonment and fine at the discretion of the court, for violation of a city
ordinance;
(iv) Adopt measures to protect the inhabitants of the city from the harmful effects of man-made or natural
disasters and calamities, and to provide relief services and assistance for victims during and in the aftermath
of said disasters or calamities and their return to productive livelihood following said events;
(v) Enact ordinances intended to prevent, suppress and impose appropriate penalties for habitual drunkenness
in public places, vagrancy, mendicancy, prostitution, establishment and maintenance of houses of ill repute,
gambling and other prohibited games of chance, fraudulent devices and ways to obtain money or property,
drug addiction, maintenance of drug dens, drug pushing, juvenile delinquency, the printing, distribution or
exhibition of obscene or pornographic materials or publications, and such other activities inimical to the
welfare
and
morals
of
the
inhabitants
of
the
city;
(vi) Protect the environment and impose appropriate penalties for acts which endanger the environment, such
as dynamite fishing and other forms of destructive fishing, illegal logging and smuggling of logs, smuggling of
natural resources products and of endangered species of flora and fauna, slash and burn farming, and such
other activities which result in pollution, acceleration of eutrophication of rivers and lakes, or of ecological
imbalance;

(vii) Subject to the provisions of the Code and applicable laws, determine the powers and duties of officials and
employees
of
the
city;
(viii) Determine the positions and the salaries, wages, allowances and other emoluments and benefits of
officials and employees paid wholly or mainly from city funds and provide for expenditures necessary for the
proper conduct of programs, projects, services, and activities of the city government;
(ix) Authorize the payment of compensation to a qualified person not in the government service who fills up a
temporary vacancy or grant honorarium to any qualified official or employee designated to fill a temporary
vacancy
in
a
concurrent
capacity,
at
the
rate
authorized
by
law;
(x) Provide a mechanism and the appropriate funds therefore, to ensure the safety and protection of all city
government property, public documents, or records such as those relating to property inventory, land
ownership, records of births, marriages, deaths, assessments, taxation, accounts, business permits, and such
other records and documents of public interest in the offices and departments of the city government;
(xi) When the finances of the city government allow, provide for additional allowances and other benefits to
judges, prosecutors, public elementary and high school teachers, and other national government officials
stationed
in
or
assigned
to
the
city;
(xii) Provide legal assistance to barangay officials who, in the performance of their official duties or on the
occasion thereof, have to initiate judicial proceedings or defend themselves against legal action; and
(xiii) Provide group insurance or additional insurance coverage for all barangay officials, including members
of barangay tanod brigades and other service units, with public or private insurance companies, when the
finances
of
the
city
government
allow
said
coverage;
(2) Generate and maximize the use of resources and revenues for the development plans, program objectives
and priorities of the city as provided in Section 18 of the Code, with particular attention to agro-industrial
development
and
citywide
growth
and
progress,
and
relative
thereto,
shall:
(i) Approve the annual and supplemental budgets of the city government and appropriate funds for specific
programs, projects, services and activities of the city, or for other purposes not contrary to law, in order to
promote
the
general
welfare
of
the
city
and
its
inhabitants;
(ii) Subject to the provisions of Book II of the Code and applicable laws and upon a majority vote of all the
members of the sangguniang panlungsod, enact ordinances levying taxes, fees and charges, prescribing the
rates thereof for general and specific purposes, and granting tax exemptions, incentives or reliefs;
(iii) Subject to the provisions of Book II of the Code and upon a majority vote of all the members of the
sangguniang panlungsod, authorize the city mayor to negotiate and contract loans and other forms of
indebtedness;
(iv) Subject to the provisions of Book II of the Code and applicable laws and upon a majority vote of all the
members of the sangguniang panlungsod, enact ordinances authorizing the floating of bonds or other

instruments of indebtedness, for the purpose of raising funds to finance development projects;
(v) Appropriate funds for the construction and maintenance or the rental of buildings for the use of the city;
and, upon a majority vote of all the members of the sangguniang panlungsod, authorize the city mayor to lease
to private parties such public buildings held in a propriety capacity, subject to existing laws, rules and
regulations;
(vi) Prescribe reasonable limits and restraints on the use of property within the jurisdiction of the city;
(vii) Adopt a comprehensive land use plan for the city provided that in the case of component cities, the
formulation, adoption or modification of said plan shall be in coordination with the approved provincial
comprehensive
land
use
plan;
(viii) Reclassify agricultural lands within the jurisdiction of the city, subject to the provisions of Rule VII of
these
Rules;
(ix) Enact integrated zoning ordinances in consonance with the approved comprehensive land use plan, subject
to existing laws, rules and regulations; establish fire limits or zones, particularly in populous centers; and
regulate the construction, repair or modification of buildings within said fire limits or zones in accordance
with
the
provisions
of
the
Fire
Code;
(x) Subject to national law, process and approve subdivision plans for residential, commercial, or industrial
purposes and other development purposes, and to collect processing fees and other charges, the proceeds of
which shall accrue entirely to the city provided that where approval of an NGA is required, said approval shall
not be withheld for more than thirty (30) days from receipt of the application. Failure to act on the application
within
the
said
period
shall
be
deemed
as
approval
thereof;
(xi) Subject to the provisions of Book II of the Code, grant the exclusive privilege of constructing fish corrals
or fish pens, or the taking or catching of bangus fry, prawn fry or kawag-kawag, or fry of any species or fish
within
the
city
waters;
(xii) With the concurrence of at least two-thirds (2/3) of all the members of the sangguniang panlungsod, grant
tax exemptions, incentives or reliefs to entities engaged in community growth-inducing industries, subject to
the
provisions
of
Chapter
5,
Title
I,
Book
II
of
the
Code;
(xiii) Grant loans or provide grants to other LGUs or to national, provincial, and city charitable, benevolent or
educational institutions provided that said institutions are operated and maintained within the city;
(xiv)

Regulate

the

numbering

of

residential,

(xv)

Regulate

the

inspection,

weighing

and

commercial

and

measuring

of

other
articles

buildings;
of

and

commerce.

(3) Subject to the provisions of Book II of the Code, enact ordinances granting franchises and authorizing the
issuance of permits or licenses, upon such conditions and for such purposes intended to promote the general
welfare of the inhabitants of the city and pursuant to this legislative authority shall:

(i) Fix and impose reasonable fees and charges for all services rendered by the city government to private
persons
or
entities;
(ii) Regulate or fix license fees for any business or practice of profession within the city and the conditions
under which the license for said business or practice of profession may be revoked and enact ordinances
levying
taxes
thereon;
(iii) Provide for and set the terms and conditions under which public utilities owned by the city shall be
operated by the city government, and prescribe the conditions under which the same may be leased to private
persons
or
entities,
preferably
cooperatives;
(iv) Regulate the display of and fix the license fees for signs, signboards, or billboards at the place or places
where the profession or business advertised thereby is, in whole or in part, conducted;
(v) Any law to the contrary notwithstanding, authorize and license the establishment, operation, and
maintenance of cockpits, and regulate cockfighting and commercial breeding of gamecocks provided that
existing
rights
should
not
be
prejudiced;
(vi) Subject to the guidelines prescribed by the Department of Transportation and Communications, regulate
the operation of tricycles and grant franchises for the operation thereof within the territorial jurisdiction of
the
city;
and
(vii) Upon approval by a majority vote of all the members of the sangguniang panlungsod: grant a franchise to
any person, partnership, corporation, or cooperative to do business within the city; establish, construct,
operate and maintain ferries, wharves, markets or slaughterhouses; or undertake such other activities within
the city as may be allowed by applicable laws provided that cooperatives shall be given preference in the grant
of
such
a
franchise.
(4) Regulate activities relative to the use of land, buildings and structures within the city in order to promote
the
general
welfare
and
for
said
purpose
shall:
(i)

Declare,

prevent

or

abate

any

nuisance;

(ii) Require that buildings and the premises thereof and any land within the city be kept and maintained in a
sanitary condition; impose penalties for any violation thereof; or, upon failure to comply with said
requirement, have the work done at expense of the owner, administrator or tenant concerned; or require the
filing up of any land or premises to a grade necessary for proper sanitation;
(iii) Regulate the disposal of clinical and other wastes from hospitals, clinics and other similar establishments;
(iv) Regulate the establishment, operation and maintenance of cafes, restaurants, beerhouses, hotels, motels,
inns, pension houses, lodging houses, and other similar establishments, including tourist guides and transports;
(v) Regulate the sale, giving away or dispensing of any intoxicating malt, vino, mixed or fermented liquors at
any
retail
outlet;

(vi) Regulate the establishment and provide for the inspection of steam boilers or any heating device in
buildings and the storage of inflammable and highly combustible materials within the city;
(vii) Regulate the establishment, operation, and maintenance of any entertainment or amusement facilities,
including theatrical performances, circuses, billiard pools, public dancing schools, public dance halls, sauna
baths, massage parlors, and other places for entertainment or amusement; regulate such other events or
activities for amusement or entertainment, particularly those which tend to disturb the community or annoy
the inhabitants, or require the suspension or suppression of the same; or, prohibit certain forms of amusement
or entertainment in order to protect the social and moral welfare of the community;
(viii) Provide for the impounding of stray animals; regulate the keeping of animals in homes or as part of a
business, and the slaughter, sale or disposition of the same; and adopt measures to prevent and penalize cruelty
to
animals;
and,
(ix) Regulate the establishment, operation and maintenance of funeral parlors and the burial or cremation of
the
dead,
subject
to
applicable
laws,
rules
and
regulations.
(5) Approve ordinances which shall ensure the efficient and effective delivery of the basic services and facilities
as provided in Rule V of these Rules, and in addition to said services and facilities, shall:
(i) Provide for the establishment, maintenance, protection, and conservation of communal forests and
watersheds, tree parks, greenbelts, mangroves, and other similar forest development projects;
(ii) Establish markets, slaughterhouses or animal corrals and authorize the operation thereof by the city
government; and regulate the construction and operation of private markets, talipapas, or other similar
buildings
and
structures;
(iii) Authorize the establishment, maintenance, and operation by the city government of ferries, wharves, and
other structures intended to accelerate productivity related to marine and seashore or offshore activities;
(iv) Regulate the preparation and sale of meat, poultry, fish, vegetables, fruits, fresh dairy products, and other
foodstuffs
for
public
consumption;
(v) Regulate the use of streets, avenues, alleys, sidewalks, bridges, parks and other public places and approve
the construction, improvement, repair and maintenance of the same; establish bus and vehicle stops and
terminals or regulate the use of the same by privately-owned vehicles which serve the public; regulate garages
and the operation of conveyances for hire; designate stands to be occupied by public vehicles when not in use;
regulate the putting up of signs, signposts, awnings and awning posts on the streets; and provide for the
lighting,
cleaning
and
sprinkling
of
streets
and
public
places;
(vi) Regulate traffic on all streets and bridges; prohibit encroachments or obstacles thereon and, when
necessary in the interest of public welfare, authorize the removal of encroachments and illegal constructions in
public
places;
(vii) Subject to applicable laws, establish and provide for the maintenance, repair, and operation of an efficient

waterworks system to supply water for the inhabitants and to purify the source of water supply; regulate the
construction, maintenance, repair and use of hydrants, pumps, cisterns and reservoirs; protect the purity and
quantity of the water supply of the city and, for this purpose, extend the coverage of appropriate ordinances
over all territory within the drainage area of said water supply and within one hundred (100) meters of the
reservoir, conduit, canal, aqueduct, pumping station, or watershed used in connection with the water service;
and regulate the consumption, use or wastage of water and fix and collect charges therefore;
(viii) Regulate the drilling and excavation of the ground for the laying of water, gas, sewer, and other pipes and
the construction, repair and maintenance of public drains, sewers, cesspools, tunnels and similar structures;
regulate the placing of poles and the use of crosswalks, curbs, and gutters; adopt measures to ensure public
safety against open canals, manholes, live wires and other similar hazards to life and property; and regulate
the construction and use of private water closets, privies, and other similar structures in buildings and homes;
(ix) Regulate the placing, stringing, attaching, installing, repair and construction of all gas mains, electric,
telegraph and telephone wires, conduits, meters and other apparatus; and provide for the correction,
condemnation or removal of the same when found to be dangerous, defective, or otherwise hazardous to the
welfare
of
the
inhabitants;
(x) Subject to availability of funds and to applicable laws, rules and regulations, establish and provide for the
operation of vocational and technical schools and similar post-secondary institutions and, with the approval of
the Department of Education, Culture and Sports and subject to existing law on tuition fees, fix and collect
reasonable tuition fees and other school charges in education institutions supported by the city;
(xi) Establish a scholarship fund for poor but deserving students in schools located within its jurisdiction or for
students
residing
within
the
city;
(xii) Approve measures and adopt quarantine regulations to prevent the introduction and spread of diseases;
(xiii) Provide for an efficient and effective system of solid waste and garbage collection and disposal; prohibit
littering and placing or throwing of garbage, refuse and other filths and wastes;
(xiv) Provide for the care of the disabled, the aged, the sick, paupers, persons of unsound mind, abandoned
minors, juvenile delinquents, drug dependents, abuse children, and other needy and disadvantaged persons,
particularly children and youth below eighteen (18) years of age; and, subject to availability of funds, establish
and
provide
for
the
operation
of
centers
and
facilities
for
them;
(xv) Establish and provide for the maintenance and improvement of jails and detention centers, institute a
sound jail management program, and appropriate funds for the subsistence of detainees and convicted
prisoners
in
the
city;
(xvi) Establish a city council whose purpose is the promotion of culture and the arts, coordinate with NGAs
and NGOs and, subject to availability of funds, appropriate funds for the support and development of the
same;
and
(xvii) Establish a city council for the elderly which shall formulate policies and adopt measures mutually
beneficial to the elderly and to the community; provide incentives for NGOs, subject to the availability of

funds, appropriate funds to support programs and projects for the benefit of the elderly; and
(6) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
ARTICLE 100. Powers, Duties, and Functions of the Sangguniang Bayan. (a) The sangguniang bayan, as
the legislative body of the municipality, shall enact ordinances, approve resolutions and appropriate funds for
the general welfare of the municipality and its inhabitants pursuant to Section 16 of the Code and in the
proper exercise of the corporate powers of the municipality as provided in Rule IX of these Rules, and shall:
(1) Approve ordinances and pass resolutions necessary for an efficient and effective municipal governance, and
relative
thereto,
shall:
(i) Review all ordinances approved by the sangguniang barangay and executive orders issued by the punong
barangay to determine whether these are within the scope of the prescribed powers of the sanggunian and of
the
punong
barangay;
(ii) Maintain peace and order by enacting measures to prevent and suppress lawlessness, disorder, riot,
violence, rebellion or sedition and impose penalties for the violation of said ordinances;
(iv) Adopt measures to protect the inhabitants of the municipality from the harmful effects of man-made or
natural disasters and calamities and to provide relief services and assistance for victims during and in the
aftermath of said disasters or calamities and their return to productive livelihood following said events;
(v) Enact ordinances intended to prevent, suppress and impose appropriate penalties for habitual drunkenness
in public places, vagrancy, mendicancy, prostitution, establishment and maintenance of houses of ill repute,
gambling and other prohibited games of chance, fraudulent devices and ways to obtain money or property,
drug addiction, maintenance of drug dens, drug pushing, juvenile delinquency, the printing, distribution or
exhibition of obscene or pornographic materials of publications, and such other activities inimical to the
welfare
and
morals
of
the
inhabitants
of
the
municipality;
(vi) Protect the environment and impose appropriate penalties for acts which endanger the environment, such
as dynamite fishing and other forms of destructive fishing, illegal logging and smuggling of logs, smuggling of
natural resources products and of endangered species of flora and fauna, slash and burn farming, and such
other activities which result in pollution, acceleration of eutrophication of rivers and lakes, or of ecological
imbalance;
(vii) Subject to the provisions of the Code and applicable laws, determine the powers and duties of officials and
employees
of
the
municipality;
(viii) Determine the positions and the salaries, wages, allowances and other emoluments and benefits of
officials and employees paid wholly or mainly from municipal funds and provide for expenditures necessary
for the proper conduct of programs, projects, services, and activities of the municipal government;
(ix) Authorize the payment of compensation to a qualified person not in the government service who fills up a
temporary vacancy or grant honorarium to any qualified official or employee designated to fill a temporary

vacancy

in

concurrent

capacity,

at

the

rate

authorized

by

law;

(x) Provide a mechanism and the appropriate funds therefore, to ensure the safety and protection of all
municipal government property, public documents, or records such as those relating to property inventory,
land ownership, records of births, marriages, deaths, assessments, taxation, accounts, business permits, and
such other records and documents of public interest in the offices and departments of the municipal
government;
(xi) When the finances of the municipality allow, provide for additional allowances and other benefits to
judges, prosecutors, public elementary and high school teachers, and other national government officials
stationed
in
or
assigned
to
the
municipality;
(xii) Provide legal assistance to barangay officials who, in the performance of their official duties or on the
occasion thereof, have to initiate judicial proceedings or defend themselves against legal action; and
(xiii) Provide group insurance or additional insurance coverage for barangay officials, including members of
barangay tanod brigades and other service units, with public or private insurance companies, when the
finances
of
the
municipal
government
allow
said
coverage.
(2) Generate and maximize the use of resources and revenues for the development plans, program objectives
and priorities for the municipality as provided in Section 18 of the Code with particular attention to agroindustrial development and countryside growth and progress, and relative thereto, shall:
(i) Approve the annual and supplemental budgets of the municipal government and appropriate funds for
specific programs, projects, services and activities of the municipality, or for other purposes not contrary to
law, in order to promote the general welfare of the municipality and its inhabitants;
(ii) Subject to the provisions of Book II of the Code and applicable laws and upon the majority vote of all the
members of the sangguniang bayan, enact ordinances levying taxes, fees and charges, prescribing the rates
thereof for general and specific purposes, and granting tax exemptions, incentives or reliefs;
(iii) Subject to the provisions of Book II of the Code and upon a majority vote of all the members of the
sangguniang bayan, authorize the municipal mayor to negotiate and contract loans and other forms of
indebtedness;
(iv) Subject to the provisions of Book II of the Code and applicable laws and upon a majority vote of all the
members of the sangguniang bayan, enact ordinances authorizing the floatation of bonds or other instruments
of indebtedness, for the purpose of raising funds to finance development projects;
(v) Appropriate funds for the construction and maintenance or the rental of buildings for the use of the
municipality and, upon a majority vote of all the members of the sangguniang bayan, authorize the municipal
mayor to lease to private parties such public buildings held in the propriety capacity, subject to existing laws,
rules
and
regulations;
(vi) Prescribe reasonable limits and restraints on the use of property within the jurisdiction of the
municipality;

(vii) Adopt a comprehensive land use plan for the municipality provided that the formulation, adoption, or
modification of said plan shall be in coordination with the approved provincial comprehensive land use plan;
(viii) Reclassify agricultural lands within the jurisdiction of the municipality, subject to the provisions of Rule
VII
of
these
Rules;
(ix) Enact integrated zoning ordinances in consonance with the approved comprehensive land use plan, subject
to existing laws, rules and regulations; establish fire limits or zones, particularly in populous centers; and
regulate the construction, repair or modification of buildings within the said fire limits or zones in accordance
with
the
provisions
of
the
Fire
Code;
(x) Subject to national law, process and approve subdivision plans for residential, commercial, or industrial
purposes and other development purposes, and collect processing fees and other charges, the proceeds of
which shall accrue entirely to the municipality provided that where approval by a national agency or office is
required, said approval shall not be withheld for more than thirty (30) days from receipt of the application.
Failure to act on the application within the period stated above shall be deemed as approval thereof;
(xi) Subject to the provisions of Book II of the Code, grant the exclusive privilege of constructing fish corrals
or fish pens, or taking or catching of bangus fry, prawn fry or kawag-kawag or fry of any species or fish within
the
municipal
waters;
(xii) With the concurrence of at least two-thirds (2/3) of all the members of the sangguniang bayan, grant tax
exemptions, incentives or reliefs to entities engaged in community growth-inducing industries, subject to the
provisions
of
Chapter
5,
Title
I
Book
II
of
the
Code;
(xiii) Grant loans or provide grants to another LGUs or to national, provincial, and municipal charitable,
benevolent or educational institutions provided that said institutions are operated and maintained within the
municipality;
(xiv)

Regulate

the

numbering

of

residential,

(xv)

Regulate

the

inspection,

weighing

and

commercial
measuring

and
of

other
articles

buildings;
of

and,

commerce.

(3) Subject to the provisions of Book II of the Code, grant franchises, enact ordinances authorizing the
issuance of permits or licenses, or enact ordinances levying taxes, fees and charges upon such conditions and
for such purposes intended to promote the general welfare of the inhabitants of the municipality, and pursuant
to
this
legislative
authority
shall:
(i) Fix and impose reasonable fees and charges for all services rendered by the municipal government to
private
persons
or
entities;
(ii) Regulate any business, occupation, or practice of profession or calling which does not require government
examination within the municipality and the conditions under which the license for said business or practice of
profession
may
be
issued
or
revoked;

(iii) Prescribe the terms and conditions under which public utilities owned by the municipality shall be
operated by the municipal government or leased to private persons or entities, preferably cooperatives;
(iv) Regulate the display of and fix the license fees for signs, signboards, or billboards at the place or places
where the profession or business advertised thereby is, in whole or in part, conducted;
(v) Any law to the contrary notwithstanding, authorize and license the establishment, operation, and
maintenance of cockpits, and regulate cockfighting and commercial breeding of gamecocks provided that
existing
rights
should
not
be
prejudiced;
(vi) Subject to the guidelines prescribed by the Department of Transportation and Communications, regulate
the operation of tricycles and grant franchises for the operation thereof within the territorial jurisdiction of
the
municipality;
(vii) Upon approval by a majority vote of all the members of the sangguniang bayan, grant a franchise to any
person, partnership, corporation, or cooperative to establish, construct, operate and maintain ferries, wharves,
markets or slaughterhouses, or such other similar activities within the municipality as may be allowed by
applicable laws provided that cooperatives shall be given preference in the grant of such a franchise.
(4) Regulate activities relative to the use of land, buildings, and structures within the municipality in order to
promote
the
general
welfare
and
for
said
purpose
shall:
(i)

Declare,

prevent

or

abate

any

nuisance;

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

the inhabitants, or require the suspension or suppression of the same; or, prohibit certain forms of amusement
or entertainment in order to protect the social and moral welfare of the community;
(viii) Provide for the impounding of stray animals; regulate the keeping of animals in homes or as part of a
business, and the slaughter, sale or disposition of the same; and adopt measures to prevent and penalize cruelty
to
animals;
and
(ix) Regulate the establishment, operation, and maintenance of funeral parlors and the burial or cremation of
the
dead,
subject
to
applicable
laws,
rules
and
regulations.
(5) Approve ordinances which shall ensure the efficient and effective delivery of the basic services and facilities
as provided in Rule V of these Rules, and in addition to said services and facilities, shall:
(i) Provide for the establishment, maintenance, protection, and conservation of communal forests and
watersheds, tree parks, greenbelts, mangroves, and other similar forest development projects;
(ii) Establish markets, slaughterhouses, or animal corrals and authorize the operation thereof, and regulate the
construction and operation of private markets, talipapas, or other similar buildings and structures;
(iii) Authorize the establishment, maintenance and operation of ferries, wharves, and other structures, and
marine
and
seashore
or
offshore
activities
intended
to
accelerate
productivity;
(iv) Regulate the preparation and sale of meat, poultry, fish, vegetables, fruits, fresh dairy products, and other
foodstuffs
for
public
consumption;
(v) Regulate the use of streets, avenues, alleys, sidewalks, bridges, parks and other public places and approve
the construction, improvement, repair and maintenance of the same; establish bus and vehicle stops and
terminals or regulate the use of the same by privately-owned vehicles which serve the public; regulate garages
and the operation of conveyances for hire; designate stands to be occupied by public vehicles when not in use;
regulate the putting up of signs, signposts, awnings and awning posts on the streets; and provide for the
lighting,
cleaning
and
sprinkling
of
streets
and
public
places;
(vi) Regulate traffic on all streets and bridges, prohibit the putting up of encroachments or obstacles thereon,
and when necessary in the interest of public welfare, authorize the removal of encroachments and illegal
constructions
in
public
places;
(vii) Subject to applicable laws, provide for the establishment, operation, maintenance, and repair of an
efficient waterworks system to supply water for the inhabitants; regulate the construction, maintenance, repair
and use of hydrants, pumps, cisterns and reservoirs; protect the purity and quantity of the water supply of the
municipality and, for this purpose, extend the coverage of appropriate ordinances over all territory within the
drainage area of said water supply and within one hundred (100) meters of the reservoir, conduit, canal,
aqueduct, pumping station, or watershed used in connection with the water service; and regulate the
consumption,
use
or
wastage
of
water;
(viii) Regulate the drilling and excavation of the ground for the laying of water, gas, sewer, and other pipes,
and the construction, repair and maintenance of public drains, sewers, cesspools, tunnels and similar

structures; regulate the placing of poles and the use of crosswalks, curbs, and gutters; adopt measures to
ensure public safety against open canals, manholes, live wires and other similar hazards to life and property;
and, regulate the construction and use of private water closets, privies and other similar structures in buildings
and
homes;
(ix) Regulate the placing, stringing, attaching, installing, repair and construction of all gas mains, electric,
telegraph and telephone wires, conduits, meters and other apparatus; and, provide for the correction,
condemnation, or removal of the same when found to be dangerous, defective or otherwise hazardous to the
welfare
of
the
inhabitants;
(x) Subject to the availability of funds and to applicable laws, rules and regulations, establish and provide for
the operation of vocational and technical schools and similar post-secondary institutions and with the approval
of the Department of Education, Culture and Sports, fix and collect reasonable fees and other school charges
on
said
institutions,
subject
to
existing
laws
on
tuition
fees;
(xi) Establish a scholarship fund for poor but deserving students residing within the municipality in schools
located
within
its
jurisdiction;
(xii) Approve measures and adopt quarantine regulations to prevent the introduction and spread of diseases;
(xiii) Provide for an efficient and effective system of solid waste and garbage collection and disposal and
prohibit littering and the placing or throwing of garbage, refuse and other filth and wastes;
(xiv) Provide for the care of paupers, the aged, the disabled, the sick, persons of unsound mind, abandoned
minors, juvenile delinquents, drug dependents, abused children and other needy and disadvantaged persons,
particularly children and youth below eighteen (18) years of age and, subject to availability of funds, establish
and
provide
for
the
operation
of
centers
and
facilities
for
said
persons;
(xv) Establish and provide for the maintenance and improvement of jails and detention centers, institute sound
jail management programs, and appropriate funds for the subsistence of detainees and convicted prisoners in
the
municipality;
(xvi) Establish a municipal council whose purpose is the promotion of culture and the arts, coordinate with the
NGAs and NGOs and, subject to the availability of funds, appropriate funds for the support and development
of
the
same;
and
(xvii) Establish a municipal council for the elderly which shall formulate policies and adopt measures mutually
beneficial to the elderly and to the community; provide incentives for NGOs and, subject to availability of
funds, appropriate funds to support programs and projects for the benefit of the elderly; and
(6) Exercise such other powers and perform such other duties and functions as may be prescribed by law of
ordinance.
ARTICLE 101. Powers, Duties, and Functions of the Sangguniang Barangay. (a) The sangguniang
barangay,
as
the
legislative
body
of
the
barangay,
shall:

(1) Enact ordinances as may be necessary to discharge the responsibilities conferred upon it by law or
ordinance
and
to
promote
the
general
welfare
of
the
inhabitants
therein;
(2)

Enact

tax

and

revenue

ordinances,

subject

to

the

limitations

imposed

in

the

Code;

(3) Enact annual and supplemental budgets in accordance with the provisions of these Rules;
(4) Provide for the construction and maintenance of barangay facilities and other public works projects
chargeable to the general fund of the barangay or such other funds actually available for the purpose;
(5) Submit to the sangguniang panlungsod or sangguniang bayan such suggestions or recommendations as it
may see fit for the improvement of the barangay or for the welfare of the inhabitants thereof;
(6) Assist in the establishment, organization, and promotion of cooperative enterprises that will improve the
economic
condition
and
well-being
of
the
residents;
(7) Regulate the use of multi-purpose halls, multi-purpose pavements, grain or copra dryers, patios and other
post-harvest facilities, barangay waterworks, barangay markets, parking areas or other similar facilities
constructed with government funds with the jurisdiction of the barangay and charge reasonable fees for the
use
thereof;
(8) Solicit or accept monies, materials and voluntary labor for specific public works and cooperative
enterprises of the barangay from residents, landowners, producers and merchants in the barangay; monies
from grants-in-aid, subsidies, contributions, and revenues made available to the barangays from national,
provincial, city or municipal funds; and monies from other private agencies and individuals provided that
monies or properties donated by private agencies and individuals for specific purposes shall accrue to the
barangay
as
trust
fund;
(9) Solicit or accept, in any or all the foregoing public works and cooperative enterprises, such cooperation as
is made available by national, provincial, city, or municipal agencies established by law to render financial,
technical, and advisory assistance to barangays and to barangay residents provided that in soliciting or
accepting such cooperation, the sangguniang barangay need not pledge any sum of money for expenditure in
excess of amounts currently in the barangay treasury or encumbered for other purposes;
(10) Provide compensation, reasonable allowances, or per diem as well as travel expenses for sangguniang
barangay members and other barangay officials, subject to the budgetary limitations prescribed under Title
Five, Book II of the Code provided that no increase in the compensation or honoraria of the sangguniang
barangay members shall take effect until after the expiration of the full term of all members of the
sangguniang
barangay
approving
such
increase;
(11) Hold fund-raising activities for barangay projects without the need of securing permits from any national
or local office or agency. The proceeds from such activities shall be tax-exempt and shall accrue to the general
fund of the barangay provided that in the appropriation thereof, the specific purpose for which such fundraising activity has been shall be first satisfied and provided further, that no fund-raising activities shall be
held within a period of sixty (60) days immediately preceding and after a national or local election, recall,
referendum, or plebiscite and provided finally, that said fund-raising activities shall comply with national

policy standards and regulations on morals, health, and safety of the persons participating therein. The
sangguniang barangay, through the punong barangay, shall render a public accounting of the funds raised at
the completion of the project for which the fund-raising activity was undertaken;
(12) Authorize the punong barangay to enter into contracts in behalf of the barangay, subject to the provisions
of
the
Code;
(13) Authorize the barangay treasurer to make direct purchases in an amount not exceeding One Thousand
Pesos (P1,000.00) at any one time for the ordinary and essential administrative needs of the barangay;
In the exercise of this power, the sangguniang barangay shall observe the applicable guidelines on government
procurement
of
supplies
issued
by
COA.
(14) Prescribe fines in amounts not exceeding One Thousand Pesos (P1,000.00) for violation of barangay
ordinances;
(15) Provide for the administrative needs of the lupong tagapamayapa and the pangkat ng tagapagkasundo;
(16) Provide for the organization of community brigades, barangay tanod, or community service units as may
be
necessary;
(17) Organize regular lectures, programs, or fora on community problems such as sanitation, nutrition,
literacy, and drug abuse, and convene assemblies to encourage citizen participation in government;
(18) Adopt measures to prevent and control the proliferation of squatters and mendicants in the barangay;
(19) Provide for the proper development and welfare of children in the barangay by promoting and supporting
activities for the protection and total development of children, particularly those below seven (7) years of age;
(20) Adopt measures towards the prevention and eradication of drug abuse, child abuse, and juvenile
delinquency;
(21) Initiate the establishment of a barangay high school, whenever feasible, in accordance with law;
(22) Provide for the establishment of a non-formal education center in the barangay whenever feasible, in
coordination
with
the
Department
of
Education,
Culture
and
Sports;
(23)

Provide

for

the

delivery

of

basic

services;

and

(24) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
ARTICLE 102. Presiding Officer. (a) The vice governor shall be the presiding officer of the sangguniang
panlalawigan; the city vice mayor, of the sangguniang panlungsod; the municipal vice mayor, of the
sangguniang
bayan;
and
the
punong
barangay,
of
the
sangguniang
barangay.

(b)

The

presiding

officer

shall

vote

only

to

break

tie.

(c) In the event of the inability of the regular presiding officer to preside at a sanggunian session, the members
present and constituting a quorum shall elect from among themselves a temporary presiding officer. He shall
certify within ten (10) days from the passage of ordinances enacted and resolutions adopted by the sanggunian
in
the
session
over
which
he
temporarily
presided.
ARTICLE 103. Internal Rules of Procedure. (a) On the first regular session following the election of its
members and within ninety (90) days thereafter, the sanggunian concerned shall adopt or update its existing
rules
of
procedure.
(b)

The

rules

of

procedure

shall

provide

for

the

following:

(1) The organization of the sanggunian and the election of its officers, as well as the creation of standing
committees which shall include among others, the committees on appropriations, women and family, human
rights, youth and sports development, environmental protection, and cooperatives; the general jurisdiction of
each committee; and the election of the chairman and members of each committee provided the sectoral
representatives shall automatically chair the committee corresponding to their sectoral group. The president of
the local chapters of the liga ng mga barangay in provincial, city, or municipal level shall likewise
automatically
chair
the
committee
on
barangay
affairs
or
its
equivalent.
(2)

The

(3)

order

and

calendar

The

of

business

for

legislative

each

session;

process;

(4) The parliamentary procedures which include the conduct of members during the sessions;
(5) The discipline of members for disorderly behavior and absences without justifiable causes for four (4)
consecutive sessions, for which they may be censured, reprimanded, or excluded from the session, suspended
for not more than sixty (60) days, or expelled provided that the penalty of suspension or expulsion shall require
the concurrence of at least two-thirds (2/3) vote of all the sanggunian members and provided further that a
member convicted by final judgment to imprisonment of at least one (1) year for any crime involving moral
turpitude
shall
be
automatically
expelled
from
the
sanggunian;
and
(6)

Such

other

rules

as

the

sanggunian

may

adopt.

ARTICLE 104. Full Disclosure of Financial and Business Interests of Sanggunian Members. (a) Every
sanggunian members shall, upon assumption to office, make a full disclosure of his business and financial
interests. He shall also disclose any business, financial, or professional relationship or any relation by affinity
or consanguinity within the fourth civil degree, which he may have with any person, firm, or entity affected by
any ordinance or resolution under consideration by the sanggunian of which he is a member, which
relationship
may
result
in
conflict
of
interest.
Such
relationship
shall
include:
(1) Ownership of stock, capital, or investment in the entity or firm to which the ordinance or resolution may
relate;
and

(2) Contracts or agreements with any person or entity which the ordinance or resolution under consideration
may
effect.
In the absence of a specific constitutional or statutory provision applicable to this situation, conflict of interest
refers in general to one where it may be reasonably deduced that a member of a sanggunian may not act in the
public interest due to some private, pecuniary, or other personal considerations that may tend to affect his
judgment
to
the
prejudice
to
the
service
of
the
public.
(b) The disclosure required under this Rule shall be made in writing and submitted to the secretary of the
sanggunian or the secretary of the committee of which he is a member. The disclosure shall, in all cases, form
part of the record of the proceedings and shall be made in the following manner:
(1) Disclosure shall be made before the member participates in the deliberations on the ordinance or resolution
under consideration provided that if the member did not participate during the deliberations, the disclosure
shall be made before voting on the ordinance or resolution on second and third readings; and
(2) Disclosure shall be made when a member takes a position or makes a privilege speech on a matter that may
affect the business interest, financial connection, or professional relationship described in this Article.
ARTICLE 105. Sessions. (a) The sessions of the sanggunian may either be regular or special.
(1) Regular sessions On the first day of the session immediately following the election of its members, the
sanggunian shall, by resolution, fix the day, time, and place of its regular sessions. The minimum number of
regular sessions shall be once a week for the sangguniang panlungsod, and sangguniang bayan, and twice a
month
for
the
sangguniang
barangay.
(2)

Special

sessions

(i) When public interest so demands, special sessions may be called by the local chief executive or by a majority
of
the
members
of
the
sanggunian.
(ii) A written notice to the sanggunian members stating the date, time and purpose of the meeting shall be
served personally or left with a member of his household at his usual place of residence at least twenty-four
(24)
hours
before
the
special
session
is
held.
(iii) Unless otherwise agrees upon by two-thirds (2/3) vote of the members present, there being a quorum, no
other matter may be considered at a special session except those stated in the notice.
(b) All sanggunian sessions shall be open to the public unless a closed door session is ordered by an affirmative
vote of a majority of the members present, there being a quorum, in the public interest or for reasons of
security, decency, or morality. No two (2) sessions, whether regular or special, may be held in a single day.
(c) Each sanggunian shall keep a journal and record of its proceedings which may be published upon
resolution
of
the
sanggunian
concerned.
ARTICLE 106. Quorum. (a) A majority of all the members of the sanggunian who have been elected and

qualified

shall

constitute

quorum

to

transact

official

business.

(b) Should a question of quorum be raised during a session, the presiding officer shall immediately proceed to
call
the
roll
of
the
members
and
thereafter
announce
the
results.
(c) Where there is no quorum, the presiding officer may declare a recess until such time as a quorum is
constituted, or a majority of the members present may adjourn from day to day and may compel the
immediate attendance of any member absent without justifiable cause by designating a member of the
sanggunian, to be assisted by a member or members of the police force assigned in the territorial jurisdiction
of the LGU concerned, to arrest the absent member and present him at the session.
(d) If there is still no quorum despite the enforcement of the immediately preceding subsection, no business
shall be transacted. The presiding officer, upon proper motion duly approved by the members present, shall
then
declare
the
session
adjourned
for
lack
of
quorum.
ARTICLE 107. Ordinances and Resolutions. The following rules shall govern the enactment of ordinances
and
resolutions:
(a) Legislative actions of a general and permanent character shall be enacted in the form of ordinances, while
those which are of temporary character shall be passed in the form of resolutions. Matters relating to
proprietary functions and to private concerns shall also be acted upon by resolution.
(b) Proposed ordinances and resolutions shall be in writing and shall contain an assigned number, a title or
caption, an enacting or ordaining clause, and the date of its proposed effectivity. In addition, every proposed
ordinance shall be accompanied by a brief explanatory note containing the justification for its approval. It
shall be signed by the author or authors and submitted to the secretary to the sanggunian who shall report the
same
to
the
sanggunian
at
its
next
meeting.
(c) A resolution shall be enacted in the same manner prescribed for an ordinance, except that it need not go
through a third reading for its final consideration unless decided otherwise by a majority of all the sanggunian
members.
(d) No ordinance or resolution shall be considered on second reading in any regular meeting unless it has been
reported out by the proper committee to which it was referred or certified as urgent by the local chief
executive.
(e) Any legislative matter duly certified by the local chief executive as urgent, whether or not it is included in
the calendar of business, may be presented and considered by the body at the same meeting without need of
suspending
the
rules.
(f) The secretary to the sanggunian of the province, city or municipality shall prepare copies of the proposed
ordinance or resolution in the form it was passed on second reading, and shall distribute to each sanggunian
member a copy thereof, except that a measure certified by the local chief executive concerned as urgent may be
submitted for final voting immediately after debate or amendment during the second reading.
(g) No ordinance or resolution passed by the sanggunian in a regular or special session duly called for the

purpose shall be valid unless approved by a majority of the members present, there being a quorum. Any
ordinance or resolution authorizing or directing the payment of money or creating liability, shall require the
affirmative vote of a majority of all the sanggunian members for its passage.
(h) Upon the passage of all ordinances and resolutions directing the payment of money or creating liability,
and at the request of any member, of any resolution or motion, the sanggunian shall record the ayes and nays.
Each approved ordinance or resolution shall be stamped with the seal of the sanggunian and recorded in a
book
kept
for
the
purpose.
ARTICLE 108. Approval of Ordinances. (a) Every ordinance enacted by the sanggunian shall be present to
the local chief executive. If the local chief executive concerned approves the same, he shall affix his signature
on each and every page thereof; otherwise, he shall veto it and return the same with his objections to the
sanggunian, which may proceed to reconsider the same. The sanggunian concerned may override the veto of
the local chief executive by two-thirds (2/3) vote of all its members thereby making the ordinance or resolution
effective
for
all
legal
intents
and
purposes.

b) The veto shall be communicated by the local chief executive concerned to the sanggunian within fifteen (15)
days in the case of a province, and ten (10) days in the case of a city or a municipality; otherwise, the ordinance
shall
be
deemed
approved
as
if
he
had
signed
it.
(c) Ordinances enacted by the sangguniang barangay shall, upon approval by a majority of all its members, be
signed
by
the
punong
barangay.
ARTICLE 109. Veto Power of the Local Chief Executive. (a) The local chief executive may veto any
ordinance of the sangguniang panlalawigan, sangguniang panlungsod, or sangguniang bayan on the ground
that it is ultra vires or prejudicial to the public welfare, stating his reasons therefore in writing.
(b) The local chief executive, except the punong barangay shall have the power to veto any particular item or
items of an appropriations ordinance, an ordinance or resolution adopting a local development plan and public
investment program or an ordinance directing the payment of money or creating liability. In such a case, the
veto shall not affect the item or items which are not objected to. The vetoed item or items shall not take effect
unless the sanggunian overrides the veto in the manner as provided in the immediately preceding Article;
otherwise, the item or items in the appropriations ordinance of the previous year corresponding to those
vetoed,
if
any,
shall
be
deemed
reenacted.
(c) The local chief executive may veto an ordinance or resolution only once. The sanggunian may override the
veto of the local chief executive concerned by two-thirds (2/3) vote of all its members, thereby making the
ordinance effective even without the approval of the local chief executive concerned.
ARTICLE 110. Review of Component City and Municipal Ordinances or Resolutions by the Sangguniang
Panlalawigan. (a) Within (3) days after approval, the secretary to the sangguniang panlungsod or
sangguniang bayan shall transmit to the sangguniang panlalawigan for review, copies of approved ordinances
and resolutions approving and adopting the local development plans and public investment programs
formulated
by
the
local
development
councils.

(b) Within thirty (30) days after receipt of copies of such ordinances and resolutions, the sangguniang
panlalawigan shall examine the documents or transmit them to the provincial attorney, or if there be none, to
the provincial prosecutor for prompt examination. The provincial attorney or provincial prosecutor shall,
within a period of ten (10) days from the receipt of the documents, inform the sangguniang panlalawigan in
writing of his comments or recommendations which may be considered by the sangguniang panlalawigan in
making
its
decision.
(c) If the sangguniang panlalawigan finds that such an ordinance or resolution is beyond the power conferred
upon the sangguniang panlungsod or sangguniang bayan concerned, it shall declare such ordinance or
resolution invalid in whole or in part. The sangguniang panlalawigan shall enter its action in the minutes and
shall advise the corresponding city or municipal authorities of the action it has taken.
(d) If no action has been taken by the sangguniang panlalawigan within thirty (30) days after submission of
such an ordinance or resolution, the same shall be presumed consistent with the law and, therefore, valid.
ARTICLE 111. Review of Barangay Ordinances by the Sangguniang Panlungsod or Sangguniang Bayan.
(a) Within ten (10) days after its enactment, the sangguniang barangay shall furnish copies of all barangay
ordinances to the sangguniang panlungsod or sangguniang bayan concerned for review as to whether the
ordinance
is
consistent
with
law
and
city
or
municipal
ordinances.
(b) If the sangguniang panlungsod or sangguniang bayan, as the case may be, fails to take action on barangay
ordinances within thirty (30) days from receipt thereof, the same shall be deemed approved.
(c) If the sangguniang panlungsod or sangguniang bayan, as the case may be, finds the barangay ordinances
inconsistent with law or city or municipal ordinances, the sanggunian concerned shall, within thirty (30) days
from receipt thereof, return the same with its comments and recommendations to the sangguniang barangay
concerned for adjustment, amendment or modification; in which case, the effectivity of the barangay
ordinance is suspended until such time as the revision called for is effected.
ARTICLE 112. Enforcement of Ordinances or Resolutions After Disapproval by Reviewing Authority. Any
attempt to enforce any disapproved ordinance or resolution adopting the local development plan and public
investment program. After disapproval by the local chief executive or by the reviewing authority shall be
sufficient ground for the suspension or dismissal of the official or employee concerned.
ARTICLE 113. Effectivity of Ordinances and Resolutions. Unless otherwise stated in the ordinance or
resolution approving the local development plan and public investment program, the same shall take effect
after ten (10) days from the date a copy thereof is posted in a bulletin board at the entrance of the provincial
capitol or city, municipal, or barangay hall, as the case may be, and in at least two (2) other conspicuous places
in
the
LGU
concerned.
ARTICLE 114. Posting and Publication of Ordinance with Penal Sanctions. (a) Ordinances with penal
sanctions shall be posted at conspicuous places in the provincial capitol, or city, municipal or barangay hall, as
the case may be, for a minimum period of three (3) consecutive weeks. Such ordinances shall also be published
in a newspaper of general circulation, where available, within the territorial jurisdiction of the LGU
concerned, except in the case of barangay ordinances. Unless otherwise provided therein, said ordinances shall

take effect on the day following its publication, or at the end of the period of posting, whichever occurs later.
(b) Any public officer or employee who violates an ordinance may be meted administrative disciplinary action,
without
prejudice
to
the
filing
of
the
appropriate
civil
or
criminal
action.
(c) The secretary to the sanggunian concerned shall transmit official copies of such ordinances to the chief
executive officer of the Official Gazette within seven (7) days following the approval of said ordinance for
publication. The Official Gazette may publish ordinances with penal sanctions for archival and reference
purposes.
RULE XVIII
Appointive Local Officials
ARTICLE 115. Appointive Provincial Officials. (a) The mandatory appointive provincial officials are as
follows:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(b)
(1)
(2)
(3)
(4)
(5)

secretary

to
the
sangguniang
panlalawigan;
provincial
treasurer;
provincial
assessor;
provincial
accountant;
provincial
budget
officer;
provincial
planning
and
development
coordinator;
provincial
engineer;
provincial
health
officer;
provincial
administrator;
provincial
legal
officer;
provincial
agriculturist;
provincial
social
welfare
and
development
officer;
provincial
veterinarian;
and
provincial
general
services
officer.
In

addition

thereto,

the

governor

may

appoint

the

following

officials:

provincial

environment
and
natural
resources
officer;
provincial
architect;
provincial
information
officer;
provincial
cooperatives
officer;
and
provincial
population
officer.

The appointment of provincial population officer shall be optional in the province provided that provinces
which have existing population offices shall continue to maintain such offices for a period of five (5) years from
the date of the effectivity of the Code after which, said offices shall become optional.
ARTICLE 116. Appointive City Officials. (a) The mandatory appointive city officials are as follows:
(1)

secretary

to

the

sangguniang

panlungsod;

(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(b)

city
city
city
city

city
In

(1)
(2)
(3)
(4)
(5)
(6)

treasurer;
assessor;
accountant;

city
budget
planning
and
city
city
health
city
civil
city
city
legal
city
social
welfare
and
city
general

addition

thereto,

the

city

mayor

development
engineer;

officer;
registrar;
administrator;
officer;
veterinarian;
development
officer;
services
officer.
may

appoint

city

the

information

city
city
environment
city

and

following

officials:

architect;

city
city

officer;
coordinator;

officer;
agriculturist;

and

population
natural
cooperatives

resources

officer;
officer;
officer.

and

The appointment of city population officer shall be optional in the city provided that cities which have existing
population offices shall continue to maintain such offices for a period of five (5) years from the date of the
effectivity
of
the
Code
after
which,
said
offices
shall
become
optional.
ARTICLE 117. Appointive Municipal Officials. (a) The mandatory appointive municipal officials are as
follows:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(b)
(1)
(2)
(3)
(4)

secretary

to
municipal
municipal
municipal
municipal
municipal
planning
municipal
municipal
municipal
In

addition

municipal

thereto,

the

the

bayan;

budget
officer;
and
development
coordinator;
engineer/building
official;
health
officer;
and
civil
registrar.

municipal

municipal
municipal
municipal
environment

sangguniang
treasurer;
assessor;
accountant;

mayor
legal
and

may

appoint

the

following

administrator;
officer;
agriculturist;
natural
resources

officials:

officer,

(5)
(6)
(7)

municipal

social
municipal
municipal

welfare

and
architect;
information

development
and
officer.

officer;

ARTICLE 118. Appointive Barangay Officials. (a) The mandatory appointive barangay officials are as
follows:
(1)

barangay

(2)

secretary;

barangay

and
treasurer.

ARTICLE 119. Appointment of Appointive Local Officials. (a) Unless otherwise provided in this Rule,
heads of offices and departments in the LGUs shall be appointed by the local chief executive concerned with
the concurrence of a majority of all the members of the sanggunian, subject to civil service laws, rules and
regulations.
(b) The sanggunian concerned shall act on the appointment within fifteen (15) days from the date of its
submission;
otherwise,
the
same
shall
be
deemed
confirmed.
(c) The term of office of the local administrator, local legal officer, and local information officer is coterminous
with
that
of
their
appointing
authority.
ARTICLE
(a)

120.

Maintain

Other

Local

existing

Government
offices

not

Offices.

The

mentioned

in

sanggunian
this

may:
Rule;

(b) Create such other offices as may be necessary to carry out the purposes of the LGU; or
(c) Consolidate the functions of any office with those of another in the interest of efficiency and economy.
ARTICLE 121. Residency Requirement. The requirement for an appointive local official to be a resident of
the LGU concerned shall be construed to mean as actual residence in the locality for at least six (6) months
immediately
preceding
his
appointment.
ARTICLE 122. Qualifications, Powers, and Duties of Appointive Local Officials.
(a)

The

secretary

to

the

sanggunian.

(1) The secretary to the sanggunian shall be a career official with rank and salary equal to a head of office or
department.
(2) No person shall be appointed secretary to the sanggunian unless he is a citizen of the Philippines, a resident
of the LGU concerned, of good moral character, a holder of a college degree, preferably in law, commerce, or
public administration from a recognized college or university, and a holder of a first grade civil service
eligibility
or
its
equivalent.
(3) The secretary to the sanggunian shall take charge of the office of the secretary to the sanggunian and shall:

(i)

Attend

meetings

of

the

sanggunian

and

keep

journal

of

its

proceedings;

(ii) Keep the seal of the LGU and affix the same with his signature to all ordinances, resolutions, and other
official acts of the sanggunian and present the same to the presiding officer for his signature;
(iii) Forward to the governor or mayor, as the case may be, for approval, copies of ordinances enacted by the
sanggunian
and
duly
certified
by
the
presiding
officer;
(iv) Transmit to the sangguniang panlungsod or sangguniang bayan concerned, in the case of the sangguniang
barangay, and to the sangguniang panlalawigan concerned, in the case of the sangguniang panlungsod of
component
cities
or
sangguniang
bayan,
copies
of
duly
approved
ordinances;
(v) Furnish, upon request of any interested party, certified copies of records of public character in his custody,
upon payment to the local treasurer of such fees as may be prescribed by ordinance;
(vi) Record in a book kept for the purpose, all ordinances and resolutions enacted or adopted by the
sanggunian,
with
the
dates
of
passage
and
publication
thereof;
(vii) Keep his office and all non-confidential records therein open to the public during the usual business
hours;
(viii) Translate into the dialect used by a majority of the inhabitants all ordinances and resolutions
immediately after their approval, and cause the publication thereof, together with the original version in the
manner
provided
in
Rule
XVII
of
these
Rules;
(ix) Take custody of the local archives and, where applicable, the local library and annually account for the
same;
and
(x) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance
relative
to
his
position.
(xi) In the case of the barangay secretary, he shall keep custody of all records of the sangguniang barangay and
the barangay assembly meetings; prepare and keep the minutes of all meetings of the sangguniang barangay
and the barangay assembly; prepare a list of members of the barangay assembly, and have the same posted in
conspicuous places within the barangay; assist in the preparation of all necessary forms for the conduct of
barangay elections, initiatives, referenda or plebiscites, in coordination with the COMELEC; assist the
municipal civil registrar in the registration of births, deaths, and marriages; keep an updated record of all
inhabitants of the barangay containing the following items of information: name, address, place and date of
birth, sex, civil status, citizenship, occupation, and such other items of information as may be prescribed by
law or ordinance; submit a report on the actual number of barangay residents as often as may be required by
the sangguniang barangay; and exercise such other powers and perform such other duties and functions as
may
be
prescribed
by
law
or
ordinance.
(b)

The

Treasurer

(1) The provincial, city, and municipal treasurers shall be appointed by the Secretary of Finance from a list of
at least three (3) ranking eligible recommendees of the governor or mayor, as the case may be, subject to civil
service
law,
rules
and
regulations.
(2) No person shall be appointed treasurer unless he is a citizen of the Philippines, a resident of the LGU
concerned, of good moral character, a holder of a college degree, preferably in commerce, public
administration or law from a recognized college or university, and a holder of a first grade civil service
eligibility or its equivalent. He must have acquired experience in treasury or accounting service for at least five
(5) years in the case of the provincial or city treasurer, and three (3) years in the case of the municipal
treasurer.
(3) The treasurer shall be under the administrative supervision of the governor or mayor, as the case may be,
to whom he shall report regularly on the tax collection efforts in the LGU.
(4) The treasurer shall take charge of the treasury office, perform the duties provided under Book II of the
Code,
and
shall:
(i) Advise the governor or mayor, as the case may be, the sanggunian, and other local and national government
officials concerned regarding disposition of local government funds, and on such other matters relative to
public
finance;
(ii) Take custody of, and exercise proper management of the funds of the LGU concerned;
(iii) Take charge of the disbursement of all and such other funds the custody of which may be entrusted to him
by
law
or
other
competent
authority;
(iv) Inspect private commercial and industrial establishments within the jurisdiction of the LGU concerned in
relation to the implementation of tax ordinances, pursuant to the provisions under Book II of the Code;
(v)

Maintain

and

update

the

tax

information

system

of

the

LGU;

(vi) In the case of the provincial treasurer, exercise technical supervision over all treasury offices of component
cities
and
municipalities;
and
(vii) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
(viii) In the case of the barangay treasurer, he shall keep custody of barangay funds and properties; collect and
issue official receipts for taxes, fees, contributions, monies, materials, and all other resources accruing to the
barangay treasury and deposit the same in the account of the barangay as provided under Title Five, Book II
of the Code; disburse funds in accordance with the financial procedures provided in the Code; submit to the
punong barangay a statement covering the actual and estimates of income and expenditures for the preceding
and ensuing calendar years, respectively, subject to the provisions of Title Five, Book II of the Code; render a
written accounting report of all barangay funds and property under his custody at the end of each calendar
year, and ensure that such report shall be made available to the members of the barangay assembly and other
government agencies concerned; certify as to the availability of funds whenever necessary; plan and attend to

the rural postal circuit within his jurisdiction; and exercise such other powers and perform such other duties
and
functions
as
may
be
prescribed
by
law
or
ordinance.
(5) An assistant treasurer may be appointed by the Secretary of Finance from a list of at least three (3)
ranking, eligible recommendees of the governor or mayor, as the case may be, subject to civil service law, rules
and
regulations.
No person shall be appointed assistant treasurer unless he is a citizen of the Philippines, a resident of the LGU
concerned, of good moral character, a holder of a college degree preferably in commerce, public
administration, or law from a recognized college or university, and a holder of first grade civil service
eligibility or its equivalent. He must have acquired at least five (5) years experience in the treasury or
accounting service in the case of the provincial or city assistant treasurer, and three (3) years in the case of the
municipal
assistant
treasurer.
The assistant treasurer shall assist the treasurer and perform such duties as the latter may assign to him. He
shall have authority to administer oaths concerning notices and notifications to those delinquent in the
payment of the real property tax and concerning official matters relating to the accounts of the treasurer or
otherwise
arising
in
the
offices
of
the
treasurer
and
the
assessor.
The position of assistant treasurer, while considered optional under the code, shall be maintained by the LGU
concerned
if
occupied
by
a
person
holding
a
permanent
appointment.
(c)

The

Assessor

(1) No person shall be appointed assessor unless he is a citizen of the Philippines, a resident of the LGU
concerned, of good moral character, a holder of a college degree preferably in civil or mechanical engineering,
commerce, or any other related course from a recognized college or university, and a holder of a first grade
civil service eligibility or its equivalent. He must have acquired experience in real property assessment work or
in any related field for at least five (5) years in the case of the provincial or city assessor, and three (3) years in
the
case
of
the
municipal
assessor.
(2) The assessor shall take charge of the assessor's office, perform the duties provided under Book II of the
Code,
and
shall:
(i) Ensure that all laws and policies governing the appraisal and assessment of real properties for taxation
purposes
are
properly
executed;
(ii) Initiate, review, and recommend changes in policies and objectives, plans and programs, techniques,
procedures, and practices in the valuation and assessment of real properties for taxation purposes;
(iii)
(iv)

Establish
Install

and

systematic

maintain

real

method
property

of

real

identification

property
and

assessment;

accounting

system;

(v) Prepare, install, and maintain a system of tax mapping, showing graphically all property subject to
assessment
and
gather
all
data
concerning
the
same;

(vi) Conduct frequent physical surveys to verify and determine as to whether or not all real properties within
the
province
are
properly
listed
in
the
assessment
rolls;
(vii) Exercise the functions of appraisal and assessment primarily for taxation purposes of all real properties in
the
LGU
concerned;
(viii) Prepare a schedule of fair market values for the different classes of real properties, in accordance with
Title
Two,
Book
II
of
the
Code;
(ix) Issue, upon request of any interested party, certified copies of assessment records of real property and all
other records relative to its assessment, upon payment of a service charge or fee to the treasurer;
(x) Submit every semester a report of all assessments, as well as cancellations and modifications of assessments,
to
the
local
chief
executive
and
the
sanggunian
concerned;
(xi) In the case of the assessor of a component city or municipality, attend personally or through an authorized
representative all sessions of the local board of assessment appeals whenever his assessment is the subject of
the appeal, and present or submit any information or record in his possession as may be required by the said
board;
(xii) In the case of the provincial assessor, exercise technical supervision and visitorial functions over all
component city and municipal assessors, coordinate with component city or municipal assessors in the conduct
of tax mapping operations and all other assessment activities, and provide all forms of assistance therefore.
Upon full provision by the competent city or municipality concerned for its assessor's office of the minimum
personnel, equipment, and funding requirements as may be prescribed by the Secretary of Finance, such
functions
shall
be
delegated
to
the
city
or
municipal
assessor;
and
(xiii) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
(3) All incumbent assessors holding permanent appointment shall continue in office without need of further
appointment. The local chief executive may exercise his power to appoint the assessor only when vacancy
occurs.
(4) An assistant assessor may be appointed by the local chief executive, subject to civil service law, rules, and
regulations. No person shall be appointed assistant assessor unless he is a citizen of the Philippines, a resident
of the LGU concerned, of good moral character, a holder of a college degree preferably in civil or mechanical
engineering, commerce, or any related course from a recognized college or university, and a holder of a first
grade civil service eligibility or its equivalent. He must have acquired experience in assessment or in any
related field for at least three (3) years in the case of the provincial or city assistant assessor, and one (1) year in
the
case
of
the
municipal
assistant
assessor.
The assistant assessor shall assist the assessor and perform such other duties as the latter may assign to him.
He shall have the authority to administer oaths on all declarations of real property for purposes of assessment.

All incumbent assistant assessors holding permanent appointments shall continue in office without need of
further appointment. The local chief executive may exercise his power to appoint the assistant assessor only
when
vacancy
occurs.
(d)

The

Accountant

(1) No person shall be appointed accountant unless he is a citizen of the Philippines, a resident of the LGU
concerned, of good moral character, and a certified public accountant. He must have acquired experience in
the treasury or accounting service for at least five (5) years in the case of the provincial of city accountant, and
three
(3)
years
in
the
case
of
the
municipal
accountant.
(2) The accountant shall take charge of both the accounting and internal audit services of the LGU concerned
and
shall:
(i)

Install

and

maintain

an

internal

audit

system

in

the

LGU

concerned;

(ii) Prepare and submit financial statements to the governor or mayor, as the case may be, and to the
sanggunian
concerned;
(iii) Apprise the sanggunian and other local government officials on the financial condition and operations of
the
LGU
concerned;
(iv) Certify to the availability of budgetary allotment to which expenditures and obligations may be properly
charged;
(v) Review supporting documents before preparation of vouchers to determine completeness requirements;
(vi) Prepare statements of cash advances, liquidation, salaries, allowances, reimbursements and remittances
pertaining
to
the
LGU;
(vii) Prepare statements of journal vouchers and liquidation of the same and other adjustments related
thereto;
(viii)

Post

individual

disbursements

to

the

subsidiary

ledger

and

index

cards;

(ix) Maintain individual ledgers for officials and employees of the LGU pertaining to payrolls and deductions;
(x) Record and post in index cards details of purchased furniture, fixtures, and equipment, including disposal
thereof;
if
any;
(xi) Account for all issued requests for obligations and maintain and keep all records and reports related
thereto;
(xii) Prepare journals and the analysis of obligations and maintain and keep all records and reports related
thereto;
and

(xiii) Exercise such other powers and perform such other duties and functions as may be provided by law or
ordinance.
(3) The incumbent chief accountant in the office of the treasurer shall be given preference in the appointment
to the position of accountant, subject to civil service law, rules and regulations.
(e)

The

Budget

Officer

(1) No person shall be appointed budget officer unless he is a citizen of the Philippines, a resident of the LGU
concerned, of good moral character, a holder of a college degree preferably in accounting, economics, public
administration, or any related course from a recognized college or university, and a holder of a first grade civil
service eligibility or its equivalent. He must have acquired experience in government budgeting or in any
related field for at least five (5) years in the case of the provincial or city budget officer, and at least three (3)
years
in
the
case
of
the
municipal
budget
officer.
(2)

The

budget

officer

shall

take

charge

of

the

budget

office

and

shall:

(i) Prepare forms, orders, and circulars embodying instructions on budgetary and appropriation matters for
the
signature
of
the
governor
or
mayor,
as
the
case
may
be;
(ii) Review and consolidate the budget proposals of different offices and departments of the LGU;
(iii) Assist the governor or mayor, as the case may be, in the preparation of the budget and during budget
hearings;
(iv) Study and evaluate budgetary implications of proposed legislation and submit comments and
recommendations
thereon;
(v)

Submit

periodic

budgetary

reports

to

DBM;

(vi) Coordinate with the treasurer, accountant, and the planning and development coordinator for the purpose
of
budgeting;
(vii) Assist the sanggunian concerned in reviewing the approved budgets of component LGUs;
(viii) Coordinate with the planning and development coordinator in the formulation of the development plan
of
the
LGU;
and
(ix) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
(3) The appropriations for personal services of the budget officer provided under the budget of the DBM shall,
upon effectivity of the Code, be transferred to the LGU concerned. Thereafter, the appropriations for personal
services of the budget officer shall be provided in full in the budget of the LGU.
(f)

The

Planning

and

Development

Coordinator

(1) No person shall be appointed planning and development coordinator unless he is a citizen of the
Philippines, a resident of the LGU concerned, of good moral character, a holder of a college degree preferably
in urban planning, development studies, economics, public administration, or any related course from a
recognized college or university, and a holder of a first grade civil service eligibility or its equivalent. He must
have acquired experience in development planning or in any related field for at least five (5) years in the case
of the provincial or city planning and development coordinator, and three (3) years in the case of the municipal
planning
and
development
coordinator.
(2) The planning and development coordinator shall take charge of the planning and development office and
shall:
(i) Formulate integrated economic, social, physical, and other development plans and policies for consideration
of
the
local
government
development
council;
(ii) Conduct continuing studies, researches, and training programs necessary to evolve plans and programs for
implementation;
(iii) Integrate and coordinate all sectoral plans and studies undertaken by the different functional groups or
agencies;
(iv) Monitor and evaluate the implementation of the different development programs, projects, and activities
in
the
LGU
concerned
in
accordance
with
the
approved
development
plan;
(v) Prepare comprehensive plans and other development planning documents for the consideration of the
LDC;
(vi) Analyze the income and expenditure patterns, and formulate and recommend fiscal plans and policies for
consideration of the finance committee of the LGU concerned as provided under Title Five, Book II of the
Code;
(vii)

Promote

people

participation

in

development

planning

within

the

LGU

concerned;

(ix) Exercise such other powers and perform such other functions and duties as may be prescribed by law or
ordinance.
(g)

The

Engineer

(1) No person shall be appointed engineer unless he is a citizen of the Philippines, a resident of the LGU
concerned, of good moral character, and a licensed civil engineer. He must have acquired experience in the
practice of his profession for at least five (5) years in the case of the provincial or city engineer, and three (3)
years
in
the
case
of
the
municipal
engineer.
(2)

The

engineer

shall

take

charge

of

the

engineering

office

and

shall:

(i) Initiate, review and recommend changes in policies and objectives, plans and programs, techniques,

procedures and practices in infrastructure development and public works in general of the LGU concerned;
(ii) Advise the governor or mayor, as the case may be, on infrastructure, public works, and other engineering
matters;
(iii) Administer, coordinate, supervise, and control the construction, maintenance, improvement, and repair of
roads, bridges, and other engineering and public works projects of the LGU concerned;
(iv) Provide engineering services to the LGU concerned, including investigation and survey, engineering
designs,
feasibility
studies,
and
project
management;
(v) In the case of the provincial engineer, exercise technical supervision over all engineering offices of
component
cities
and
municipalities;
and
(vi) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
(h)

The

Health

Officer

(1) No person shall be appointed health officer unless he is a citizen of the Philippines, a resident of the LGU
concerned, of good moral character, and a licensed medical practitioner. He must have acquired experience in
the practice of his profession for at least five (5) years in the case of the provincial or city health officer, and
three
(3)
years
in
the
case
of
the
municipal
health
officer.
(2)

The

health

officer

shall

take

charge

of

the

office

on

health

and

shall:

(i) Take charge of the office on health services, supervise the personnel and staff of said office, formulate
program implementation guidelines and rules and regulations for the operation of the said office for the
approval of the governor or mayor, as the case may be, in order to assist him in the efficient, effective, and
economical implementation of a health services program geared to implementation of health-related projects
and
activities;
(ii) Formulate measures for the consideration of the sanggunian and provide technical assistance and support
to the governor or mayor, as the case may be, in carrying out activities to ensure the delivery of basic services
and provision of adequate facilities relative to health services provided in Rule V of these Rules;
(iii) Develop plans and strategies on health programs and projects, and implement them upon approval thereof
by
the
governor
or
mayor
as
the
case
may
be;
(iv) Formulate and implement policies, plans, programs and projects to promote the health of the people in the
LGU
concerned;
(v) Advise the governor or mayor, as the case may be, and the sanggunian on matters pertaining to health;
(vi)

Execute

and

enforce

all

laws,

ordinances,

and

regulations

relating

to

public

health;

(vii) Recommend to the sanggunian, through the local health board, the passage of such ordinances as he may
deem
necessary
for
the
preservation
of
public
health;
(viii) Recommend the prosecution of any violation of sanitary laws, ordinances, or regulations;
(ix) Direct the sanitary inspectors to inspect all business establishments selling food items or providing
accommodations such as hotels, motels, lodging houses, pension houses, and the like, in accordance with the
Sanitation
Code;
(x)

Conduct

health

information

campaigns

and

render

health

intelligence

services;

(xi) Coordinate with other government agencies and NGO's involved in the promotion and delivery of health
services;
(xii) In the case of the provincial health officer, exercise general supervision over health officers of competent
cities
and
municipalities;
(xiii) Be in the frontline of the delivery of health services, particularly during and in the aftermath of manmade
and
natural
disasters
and
calamities;
and
(xiv) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
(i)

The

Civil

Registrar

(1) No person shall be appointed civil registrar unless he is a citizen of the Philippines, a resident of the LGU
concerned, of good moral character, a holder of a college degree from a recognized college or university, and a
holder of a first grade civil service eligibility or its equivalent. He must have acquired experience in civil
registry work for at least five (5) years in the case of the city civil registrar and three (3) years in the case of the
municipal
civil
registrar.
(2) The civil registrar shall be responsible for the civil registration program in the LGU concerned, pursuant to
the Civil Registry Law, the Civil Code, and other pertinent laws, rules and regulations issued to implement
them.
(3) The Civil Registrar shall take charge of the office of the civil registry and shall:
(i) Develop plans and strategies on civil registry programs and projects and implement them upon approval
thereof
by
the
governor
or
mayor,
as
the
case
may
be;
(ii) Accept all registrable documents and judicial decrees affecting the civil status of persons;
(iii)

File,

keep,

and

preserve

in

secure

place

the

books

required

by

law;

(iv) Transcribe and enter immediately upon receipt all registrable documents and judicial decrees affecting the
civil
status
of
persons
in
the
appropriate
civil
registry
books;

(v) Transmit to the Office of the Civil Registrar-General, within the prescribed period, duplicate copies of
registered
documents
required
by
law;
(vi) Issue certified transcripts or copies of any certificate or registered documents upon payment of the
prescribed
fees
to
the
treasurer;
(vii) Receive applications for the issuance of a marriage license and, after determining that the requirements
and supporting certificates and publication thereof for the prescribed period have been complied with, issue
the
license
upon
payment
of
the
authorized
fee
to
the
treasurer;
(viii) Coordinate with the NSO in conducting educational campaigns for vital registration and assist in the
preparation
of
demographic
and
other
statistics
for
the
LGU
concerned;
and
(ix) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
(j)

The

Administrator

(1) No person shall be appointed administrator unless he is a citizen of the Philippines, a resident of the LGU
concerned, of good moral character, a holder of a college degree preferably in public administration, law, or
any other related course from a recognized college or university, and a holder of a first grade civil service
eligibility or its equivalent. He must have acquired experience in management and administration work for at
least five (5) years in the case of the provincial or city administrator, and three (3) years in the case of the
municipal
administrator.
(2)

The

administrator

shall

take

charge

of

the

office

of

the

administrator

and

shall:

(i) Develop plans and strategies on management and programs and projects and implement them upon
approval
thereof
by
the
governor
or
mayor,
as
the
case
may
be;
(ii) Assist in coordinating the work of all the officials of the LGU under the supervision, direction, and control
of the governor or mayor, and for this purpose, he may convene the chiefs of offices and other officials of the
LGU;
(iii) Establish and maintain a sound personnel program for the LGU designed to promote career development
and
uphold
the
merit
principle
in
the
local
government
service;
(iv) Conduct a continuing organizational development of the LGU with the end in view of instituting effective
administrative
reforms;
(v) Be in the frontline of the delivery of administrative support services, particularly those related to situations
during and in the aftermath of man-made and natural disasters and calamities;
(vi) Recommend to the sanggunian and advise the governor and mayor, as the case may be, on all other
matters
relative
to
the
management
and
administration
of
the
LGU;
and

(vii) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
(k)

The

Legal

Officer

(1) No person shall be appointed legal officer unless he is a citizen of the Philippines, a resident of the LGU
concerned, of good moral character, and a member of the Philippine Bar. He must have practiced his
profession for at least five (5) years in the case of the provincial or city legal officer, and three (3) years in the
case
of
the
municipal
legal
officer.
(2) The legal officer, as chief legal counsel of the LGU, shall take charge of the office of legal services and shall:
(i) Formulate measures for the consideration of the sanggunian and provide legal assistance and support to the
governor or mayor, as the case may be, in carrying out the delivery of basic services and provisions of
adequate
facilities
as
provided
in
Rule
V
of
these
Rules;
(ii) Develop plans and strategies on programs and projects related to legal services and implement upon
approval
thereof
by
the
governor
or
mayor,
as
the
case
may
be;
(iii) Represent the LGU in all civil actions and special proceedings wherein the LGU or any official thereof, in
his official capacity, is a party; provided that, in actions or proceedings where a component city or
municipality is a party adverse to the provincial government or to another component city or municipality, a
special
legal
officer
may
be
employed
to
represent
the
adverse
party;
(iv) When required by the governor, mayor, or sanggunian, draft ordinances, contracts, bonds, leases, and
other instruments involving any interest of the LGU; and provide comments and recommendations on any
instruments
already
drawn;
(v) Render his opinion in writing on any question of law when requested to do so by the governor, mayor, or
sanggunian;
(vi) Investigate or cause to be investigated any local official or employee for administrative neglect or
misconduct in office, and recommend appropriate action to the governor, mayor, or sanggunian, as the case
may
be;
(vii) Investigate or cause to be investigated any person, firm, or corporation holding any franchise or
exercising any public privilege for failure to comply with any term or condition in the grant of such franchise
or privilege, and recommend appropriate action to the governor, mayor, or sanggunian, as the case may be;
(viii) When directed by the governor, mayor, or sanggunian, initiate and prosecute in the interest of the LGU
concerned any civil action on any bond, lease, or other contract upon any breach or violation thereof;
(ix) Review and submit recommendations on ordinances approved and executive orders issued by component
LGUs;

(x) Recommend measures to the sanggunian and advise the governor or mayor, as the case may be, on all other
matters
related
to
upholding
the
rule
of
law;
(xi) Be in the frontline of protecting human rights and prosecuting any violations thereof, particularly those
which occur during and in the aftermath of man-made or natural disasters or calamities; and
(xii) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
(l)

The

Agriculturist

(1) No person shall be appointed agriculturist unless he is a citizen of the Philippines, a resident of the LGU
concerned, of good moral character, a holder of a college degree in agriculture or any related course from a
recognized college or university, and a holder of a first grade civil service eligibility or its equivalent. He must
have practiced his profession in agriculture or acquired experience in a related field for at least five (5) years in
the case of the provincial and city agriculturist, and three (3) years in the case of the municipal agriculturist.
(2) The agriculturist

shall take charge of the office for agricultural services,

and

shall:

(i) Formulate measures for the approval of the sanggunian and provide technical assistance and support to the
governor or mayor, as the case may be, in carrying out said measures to ensure the delivery of basic services
and provision of adequate facilities relative to agricultural services as provided in Rule V of these Rules;
(ii) Develop plans and strategies on agricultural programs and projects and implement them upon approval
thereof
by
the
governor
or
mayor,
as
the
case
may
be;
(iii) Ensure that maximum assistance and access to resources in the production, processing and marketing of
agricultural and aquacultural and marine products are extended to farmers, fishermen and local
entrepreneurs;
(iv) Conduct or cause to be conducted location-specific agricultural researches and assist in making available
the appropriate technology arising out of, and disseminate information on, basic research on crops, prevention
and control of plant diseases and pests, and other agricultural matters which will maximize productivity;
(v) Assist the governor or mayor, as the case may be, in the establishment and extension services of
demonstration
farms
or
aquaculture
and
marine
products;
(vi)

Enforce

rules

and

regulations

relating

to

agriculture

and

aquaculture;

(vii) Coordinate with NGAs and NGOs which promote agricultural productivity through appropriate
technology
compatible
with
environmental
integrity;
(viii) Be in the frontline of delivery of basic agricultural services, particularly those needed for the survival of
the inhabitants during and in the aftermath of man-made and natural disasters;

(ix) Recommend to the sanggunian and advise the governor or mayor, as the case may be, on all other matters
related to agriculture and aquaculture which will improve the livelihood and living conditions of the
inhabitants;
and
(x) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
(m)

The

Social

Welfare

and

Development

Officer

(1) No person shall be appointed social welfare and development officer unless he is a citizen of the Philippines,
a resident of the LGU concerned, of good moral character, a duly licensed social worker or a holder of a
college degree preferably in sociology or any other related course from a recognized college or university, and a
holder of a first grade civil service eligibility or its equivalent. He must have acquired experience in the
practice of social work for at least five (5) years in the case of the provincial or city social welfare and
development officer, and three (3) years in the case of the municipal social welfare and development officer.
(2) The social welfare and development officer shall take charge of the office on social welfare and
development
services
and
shall:
(i) Formulate measures for the approval of the sanggunian and provide technical assistance and support to the
governor or mayor, as the case may be, in carrying out measures to ensure the delivery of basic services and
provision of adequate facilities relative to social welfare and development services as provided in Rule V of
these
Rules;
(ii) Develop plans and strategies on social welfare programs and projects and implement them upon approval
thereof
by
the
governor
or
mayor,
as
the
case
may
be;
(iii) Identify the basic needs of the needy, the disadvantaged and the impoverished and develop and implement
appropriate measures to alleviate their problems and improve their living conditions;
(iv) Provide relief and appropriate crisis intervention for victims of abuse and exploitation and recommend
appropriate
measures
to
deter
further
abuse
and
exploitation;
(v) Assist the governor or mayor, as the case may be, in implementing the barangay program for the total
development
and
protection
of
children
up
to
six
(6)
years
of
age;
(vi) Facilitate the implementation of welfare programs for the disabled, the elderly, and victims of drug
addiction, the rehabilitation of prisoners and parolees, the prevention of juvenile delinquency and such other
activities
which
would
eliminate
or
minimize
the
ill-effects
of
poverty;
(vii) Initiate and support youth welfare programs that will enhance the role of the youth in nation-building;
(viii) Coordinate with government agencies and NGOs which have for their purpose the promotion and
protection of all needy, disadvantaged, underprivileged or impoverished groups or individuals, particularly
those identified to be vulnerable and high-risk to exploitation, abuse and neglect;

(ix) Be in the frontline of service delivery, particularly those concerning immediate relief and assistance during
and
in
the
aftermath
of
man-made
and
natural
disaster
and
calamities;
(x) Recommend to the sanggunian and advise the governor or mayor, as the case may be, on all other matters
related to social welfare and development services which will improve the livelihood and living conditions of
the
inhabitants;
and
(xi) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
(n)

The

Environment

and

Natural

Resources

Officer

(1) No person shall be appointed environment and natural resources officer unless he is a citizen of the
Philippines, a resident of the LGU concerned, of good moral character, a holder of a college degree preferably
in environment, forestry, agriculture or any related course from a recognized college or university, and a
holder of a first grade civil service eligibility or its equivalent. He must have acquired experience in
environmental and natural resources management, conservation, and utilization, for at least five (5) years in
the case of the provincial or city environment and natural resources officer, and three (3) years in the case of
the
municipal
environment
and
natural
resources
officer.
(2) The environment and natural resources officer shall take charge of the office on environment and natural
resources
and
shall:
(i) Formulate measures for the consideration of the sanggunian and provide technical assistance and support
to the governor or mayor, as the case may be, in carrying out measures to ensure the delivery of basic services
and provision of adequate facilities relative to environment and natural resources services as provided in Rule
V
of
these
Rules;
(ii) Develop plans and strategies on environment and natural resources programs and projects and implement
them upon approval thereof by the governor or mayor, as the case may be;
(iii) Establish, maintain, protect and preserve communal forests, watersheds, tree parks, mangroves,
greenbelts and similar forest projects and commercial forest, like industrial tree farms and agro-forestry
projects;
(iv) Provide extension services to beneficiaries of forest development projects and technical, financial and
infrastructure
assistance;
(v) Manage and maintain seed banks and produce seedlings for forests and tree parks;
(vi) Provide extension services to beneficiaries of forest development projects and render assistance to natural
resources-related conservation and utilization activities consistent with ecological balance;
(vii) Promote small-scale mining and utilization of mineral resources, particularly mining of gold;
(viii) Coordinate with government agencies and NGOs in the implementation of measures to prevent and

control

land,

air,

and

water

pollution

with

the

assistance

of

the

DENR;

(ix) Be in the frontline of the delivery of services concerning the environment and natural resources,
particularly in the renewal and rehabilitation of the environment during and in the aftermath of man-made
and
natural
calamities
and
disasters;
(x) Recommend to the sanggunian and advise the governor or mayor, as the case may be, on all matters
relative to the protection, conservation, maximum utilization, application of appropriate technology, and other
matters
related
to
the
environment
and
natural
resources;
and
(xi) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
(o)

The

Architect

(1) No person shall be appointed architect unless he is a citizen of the Philippines, a resident of the LGU
concerned, of good moral character, and a duly licensed architect. He must have practiced his profession for at
least five (5) years in the case of the provincial or city architect, and three (3) years in the case of the municipal
architect.
(2) The architect shall take charge of the office on architectural planning and design and shall:
(i) Formulate measures for the consideration of the sanggunian and provide technical assistance and support
to the governor or mayor, as the case may be, in carrying out measures to ensure the delivery of basic services
and provision of adequate facilities relative to architectural planning and design as provided in Rule V of these
Rules;
(ii) Develop plans and strategies on architectural planning and design programs and projects and implement
them upon approval thereof by the governor or mayor, as the case may be;
(iii) Prepare and recommend for consideration of the sanggunian the architectural plan and design for the
LGU or a part thereof, including the renewal of slums and blighted areas, land reclamation activities, the
greening
of
land,
and
appropriate
planning
of
marine
and
foreshore
areas;
(iv) Review and recommend for appropriate action of the sanggunian, governor or mayor, as the case may be,
the architectural plans and design submitted by governmental and non-governmental entities or individuals,
particularly
those
for
undeveloped,
underdeveloped,
and
poorly-designed
areas;
(v) Coordinate with government and non-government entities and individuals involved in the aesthetics and
the maximum utilization of land and water within the jurisdiction of the LGU, compatible with environmental
integrity
and
ecological
balance;
(vi) Be in the frontline of the delivery of services involving architectural planning and design, particularly
those related to the redesigning of spatial distribution of basic facilities and physical structures during and in
the
aftermath
of
man-made
and
natural
calamities
and
disasters;

(vii) Recommend to the sanggunian and advise the governor or mayor, as the case may be, on all other matters
relative to the architectural planning and design as it relates to the total socioeconomic development of the
LGU;
and
(viii) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
(p)

The

Information

Officer

(1) No person shall be appointed information officer unless he is a citizen of the Philippines, a resident of the
LGU concerned, of good moral character, a holder of a college degree, preferably in journalism, mass
communication or any related course from a recognized college or university, and a holder of a first grade civil
service eligibility or its equivalent. He must have experience in writing articles and research papers, or in
writing for print, television or broadcast media of at least three (3) years in the case of the provincial or city
information officer, and at least one (1) year in the case of municipal information officer.
(2) The information officer shall take charge of the office on public information and shall:
(i) Formulate measures for the consideration of the sanggunian and provide technical assistance and support
to the governor or mayor, as the case may be, in providing information and research data required for the
delivery of basic services and provision of adequate facilities so that the public becomes aware of said services
and
may
fully
avail
of
the
same;
(ii) Develop plans and strategies on programs and projects related to public information and, implement them
upon
approval
thereof
by
the
governor
or
mayor,
as
the
case
may
be;
(iii)

Provide

relevant,

adequate,

and

timely

information

to

the

LGU

and

its

residents;

(iv) Furnish information and data on LGUs to NGAs, as may be required by law or ordinance, including those
on
NGOs;
(v) Maintain effective liaison with various sectors of the community on matters and issues that affect the
livelihood and the quality of life of the inhabitants and encourage support for programs of the local and
national
government;
(vi) Be in the frontline in providing information during and in the aftermath of man-made and natural
calamities and disasters, with special attention to the victims thereof, to help minimize injuries and casualties
during
and
after
the
emergency,
and
to
accelerate
relief
and
rehabilitation;
(vii) Recommend to the sanggunian and advise the governor or mayor, as the case may be, on all matters
relative to public information and research data as it relates to the total socioeconomic development of the
LGU;
and
(viii) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.

(q)

The

Cooperatives

Officer

(1) No person shall be appointed cooperatives officer unless he is a citizen of the Philippines, a resident of the
LGU concerned, of good moral character, a holder of a college degree, preferably in business administration
with special training in cooperatives or any related course from a recognized college or university, and a holder
of a first grade civil service eligibility or its equivalent. He must have experience in cooperatives organization
and management of at least five (5) years in the case of the provincial or city cooperatives officer, and three (3)
years in the case of the provincial or city cooperatives officer, and three (3) years in the case of municipal
cooperatives
officer.
(2) The cooperatives officer shall take charge of the office for the development of cooperatives and shall:
(i) Formulate measures for consideration of the sanggunian, and provide technical assistance and support to
the governor or mayor, as the case may be, in carrying out measures to ensure the delivery of basic services
and provision of facilities through the development of cooperatives, and providing access to such services and
facilities;
(ii) Develop plans and strategies on cooperatives programs and projects and, implement them upon approval
thereof
by
the
governor
or
mayor,
as
the
case
may
be;
(iii)

Assist

in

the

organization

of

cooperatives;

(iv) Provide technical and other forms of assistance to existing cooperatives to enhance their viability as an
economic
enterprise
and
social
organization;
(v) Assist cooperatives in establishing linkages with NGAs and NGOs involved in the promotion and
integration of the concept of cooperatives in the livelihood of the people and other community activities;
(vi) Be in the frontline of cooperatives organization, rehabilitation or viability-enhancement, particularly
during and in the aftermath of man-made and natural calamities and disasters, to aid in their survival and, if
necessary,
subsequent
rehabilitation;
(vii) Recommend to the sanggunian, and advise the governor or mayor, as the case may be, on all other matters
relative to cooperatives development and viability-enhancement which will improve the livelihood and quality
of
life
of
the
inhabitants;
and
(viii) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
(r)

The

Population

Officer

(1) No person shall be appointed population officer unless he is a citizen of the Philippines, a resident of the
LGU concerned, of good moral character, a holder of a college degree with specialized training in population
development from a recognized college or university, and a holder of a first grade civil service eligibility or its
equivalent. He must have experience in the implementation of programs on population development or
responsible parenthood for at least five (5) years in the case of the provincial or city population officer and

three

(3)

years

in

the

case

of

the

municipal

population

officer.

(2) The population officer shall take charge of the office on population development and shall:
(i) Formulate measures for the consideration of the sanggunian and provide technical assistance and support
to the governor or mayor, as the case may be, in carrying out measures to ensure the delivery of basic services
and provision of adequate facilities relative to the integration of population development principles and in
providing
access
to
said
services
and
facilities;
(ii) Develop plans and strategies and upon approval thereof by the governor or mayor, as the case may be,
implement the same, particularly those concerning the integration of population development principles and
methods in programs and projects which the governor or mayor is empowered to implement and which the
sanggunian
is
empowered
to
provide
under
the
Code;
(iii) Assist the governor or mayor, as the case may be, in the implementation of the constitutional provisions
relative to population development and the promotion of responsible parenthood;
(iv) Establish and maintain an updated data bank for program operations, development, planning and an
educational program to ensure the people's participation in and understanding of population development;
(v) Implement appropriate training programs responsive to the cultural heritage of the inhabitants; and
(vi) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
(s)

The

Veterinarian

(1) No person shall be appointed veterinarian unless he is a citizen of the Philippines, a resident of the LGU
concerned, of good moral character, and a licensed doctor of veterinary medicine. He must have practised his
profession for at least three (3) years in the case of provincial or city veterinarian and at least one (1) year in
the
case
of
the
municipal
veterinarian.
(2)

The

veterinarian

shall

take

charge

of

the

office

for

veterinary

services

and

shall:

(i) Formulate measures for consideration of the sanggunian, and provide technical assistance and support to
the governor or mayor, as the case may be, in carrying out measures to ensure the delivery of basic services
and
provision
of
adequate
facilities
pursuant
to
Rule
V
of
these
Rules;
(ii) Develop plans and strategies on veterinary-related activities and implement them upon approval thereof by
the
governor
or
mayor,
as
the
case
may
be;
(iii) Advise the governor or mayor, as the case may be, on all matters pertaining to the slaughter of animals for
human
consumption
and
the
regulation
of
slaughterhouses;
(iv)

Regulate

the

keeping

of

domestic

animals;

(v)

Regulate

and

(vi)

Enforce

all

inspect
laws

poultry,

and

milk

regulations

and
for

dairy
the

products
prevention

for
of

public
cruelty

consumption;
to

animals;

(vii) Take necessary measures to eradicate, prevent, or cure all forms of animal diseases;
(viii) Be in the frontline of veterinary related activities, such as is in the outbreak of highly-contagious and
deadly diseases, and in situations resulting in the depletion of animals for work and human consumption,
particularly those arising from the aftermath of man-made and natural calamities and disasters;
(ix) Recommend to the sanggunian and advise the governor or mayor, as the case may be, on all other matters
relative to veterinary services which will increase the number and improve the quality of livestock, poultry and
other
domestic
animals
used
for
work
or
human
consumption;
and
(x) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
(t)

The

General

Services

Officer

(1) No person shall be appointed general services officer unless he is a citizen of the Philippines, a resident of
the LGU concerned, of good moral character, a holder of a college degree on public administration, business
administration and management from a recognized college or university, and a holder of a first grade civil
service eligibility or its equivalent. He must have acquired experience in general services, including
management of supply, property, solid waste disposal, and general services officer, of at least five (5) years in
the case of the provincial or city general services officer, and at least three (3) years in the case of the municipal
general
services
officer.
(2) The general services officer shall take charge of the office on general services and shall:
(i) Formulate measures for the consideration of the sanggunian and provide technical assistance and support
to the governor or mayor, as the case may be, in carrying out measures to ensure the delivery of basic services
and provision of adequate facilities pursuant to Rule V of these Rules and which require general services
expertise
and
technical
support
services;
(ii) Develop plans and strategies on general services supportive of the welfare of the inhabitants and implement
them upon approval thereof by the governor or mayor, as the case may be;
(iii) Take custody of and be accountable for all properties, real or personal, owned by the LGU and those
granted to it in the form of donation, reparation, assistance and counterpart of joint projects;
(iv) 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;
(v) 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 LGU;

(vi) 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
LGU;
(vii) Maintain and supervise janitorial, security, landscaping and other related services in all public buildings
and
other
real
property,
whether
owned
or
leased
by
the
LGU;
(viii) Collate and disseminate information regarding prices, shipping, and other costs of supplies and other
items
commonly
used
by
the
LGU;
(ix) Perform archival and record management with respect to records of offices and departments of the LGU;
(x) Perform all other functions pertaining to supply and property management heretofore performed by the
treasurer;
and
enforce
policies
on
records
creation,
maintenance,
and
disposal;
(xi) Be in the frontline of general services related activities, such as the possible or imminent destruction or
damage to records, supplies, properties, and structures and the orderly and sanitary clearing up of waste
materials or debris, particularly during and in the aftermath of man-made and natural calamities and
disasters;
(xii) Recommend to the sanggunian and advise the governor or mayor, as the case may be, on all other matters
relative
to
general
services;
and
(xiii) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance.
ARTICLE 123. Resignations. Resignation of appointive local officials and employees must be in writing and
shall be deemed effective upon acceptance by the local chief executive concerned. In the case of the provincial,
city, and municipal treasurers, and their respective assistants, their resignations shall be deemed effective upon
acceptance by the Secretary of Finance.
RULE XIX
Disciplinary Actions
ARTICLE 124. Grounds for Disciplinary Actions. (a) An elective local official may be censured,
reprimanded, suspended, or removed from office after due notice and hearing on any of the following grounds:
(1)
(2)
(3)

Disloyalty

to

Culpable
Dishonesty,

oppression,

the

Republic

violation
misconduct

of
in

office,

of

the

the
gross

negligence,

Philippines;
Constitution;

or

dereliction

of

duty;

(4) Commission of any offense involving moral turpitude or an offense punishable by at least prision mayor
which is from six (6) years and one (1) day to twelve (12) years imprisonment;

(5)

Abuse

of

authority;

(6) Unauthorized absence for fifteen (15) consecutive working days, in the case of local chief executives and
four (4) consecutive sessions in case of members of the sangguniang panlalawigan, sangguniang panlungsod,
sangguniang
bayan,
and
sangguniang
barangay;
(7) Application for, or acquisition of, foreign citizenship or residence or the status of an immigrant of another
country;
and
(8) Such other grounds as may be provided by the Code; RA 6713; RA 3019; Administrative Code of 1987; the
Revised
Penal
Code
and
all
other
applicable
general
and
special
laws.
(b) An elective local official may be removed from office on the grounds enumerated in paragraph (a) of this
Article by order of the proper court or the disciplining authority whichever first acquires jurisdiction to the
exclusion
of
the
other.
ARTICLE 125. Form and Filing of Administrative Complaints. A verified complaint against any erring
elective
local
official
shall
be
prepared
and
filed
as
follows:
(a) Against any elective official of a province, a highly-urbanized city, a component city, a municipality within
MMA,
an
independent
component
city,
before
the
Office
of
the
President;
(b) Against any elective official of a municipality, before the sangguniang panlalawigan whose decision may be
appealed
to
the
Office
of
the
President.
(c) Against any elective barangay official, before the sangguniang panlungsod or sangguniang bayan concerned
whose
decision
shall
be
final
and
executory.
Copies of the complaints shall be furnished the office of the governor, in the case of component cities and
municipalities,
and
in
all
cases,
the
DILG.
ARTICLE 126. Hearings. (a) Within seven (7) days after the administrative complaint is filed, the Office of
the President or the sanggunian concerned, as the case may be, shall require the respondent to submit his
verified answer within fifteen (15) days from receipt thereof, and commence the investigation of the case within
ten
(10)
days
after
receipt
of
such
answer
of
the
respondent.
(1) Unreasonable failure of the respondent to file his verified answer within fifteen (15) days from receipt of the
complaint shall be considered a waiver of his rights to present evidence in his behalf.
(2) Unreasonable failure to commence the investigation within the prescribed period by the person or persons
assigned
to
investigate
shall
be
a
ground
for
disciplinary
action.
(b) When the respondent is an elective official of a province or highly-urbanized city, such hearing and
investigation shall be conducted in the place where he renders or holds office. For all other elective local
officials, the venue shall be the place where the sanggunian concerned is located.

(c) No investigation shall be held within ninety (90) days immediately prior to any local elections, and no
preventive suspension shall be imposed within the same period. If preventive suspension has been imposed
prior to the 90-day period immediately preceding local elections, it shall be deemed automatically lifted upon
the
start
of
the
said
period.
ARTICLE

127.

Preventive

Suspension.

(a)

Preventive

suspension

may

be

imposed:

(1) By the President, if the respondent is an elective official of a province, a highly-urbanized city, an
independent
component
city
or
a
municipality
within
MMA;
(2) By the governor, if the respondent is an elective official of a component city or municipality;
(3)

By

the

mayor,

if

the

respondent

is

an

elective

official

of

the

barangay.

(b) Preventive suspension may be imposed at any time after the issues are joined, when the evidence of guilt is
strong, and given the gravity of the offense, there is great probability that the continuance in office of the
respondent could influence the witnesses or pose a threat to the safety and integrity of the records and
evidence.
(c) Any single preventive suspension of an elective local official shall not extend beyond sixty (60) days.
(d) In the event that several administrative cases are filed against an elective local official, he cannot be placed
under preventive suspension for more than ninety (90) days within a single year on the same ground or
grounds
existing
and
known
at
the
time
of
the
first
suspension.
(e) Upon expiration of the preventive suspension, the suspended elective local official shall be deemed
reinstated in office without prejudice to the continuation of the proceedings against him, which shall be
terminated within one hundred twenty (120) days from the time he was formally notified of the case against
him. If the delay in the proceedings of the case is due to his fault, neglect, or request, other than the appeal
duly filed, the duration of such delay shall be counted in computing the time of termination of the case.
(f) Any abuse of the exercise of the power of preventive suspension shall be penalized as abuse of authority.
ARTICLE 128. Salary of Respondent Pending Suspension. The respondent elective local official who is
under preventive suspension shall receive no salary or compensation during such suspension. Upon subsequent
exoneration and reinstatement, however, he shall be paid his full salary or compensation including other
emoluments
accruing
during
his
suspension.
ARTICLE 129. Rights of Respondent. The respondent shall be accorded full opportunity to appear and
defend himself in person or by counsel, to confront and cross-examine the witnesses against him, and to
require the attendance of witnesses and the production of documentary evidence in his favor through the
compulsory
process
of
subpoena
or
subpoena
duces
tecum.
ARTICLE 130. Investigation and Decision. (a) The investigation of the case shall be terminated within
ninety (90) days from the start thereof. Unreasonable failure to complete the investigation after same period of
ninety (90) days by the person or persons assigned to investigate shall be a ground for disciplinary action.

(b) Within thirty (30) days after the end of the investigation, the Office of the President or the sanggunian
concerned shall render a written decision stating clearly and distinctly the facts and reasons for such decision.
Copies of decision shall be immediately furnished the respondent and all interested parties. In case of failure of
the sanggunian concerned to render a decision on the resolution recommended on the investigation within
thirty (30) days after the end of the investigation, the recommended resolution shall be considered the decision.
(c) The penalty of suspension shall not exceed the unexpired term of the respondent or a period of six (6)
months for every administrative offense, nor shall said penalty be a bar to the candidacy of the respondent so
suspended
as
long
as
he
meets
the
qualifications
required
for
the
office.
(d) The penalty of removal from office shall be considered a bar to the candidacy of the respondent for any
elective
position.
ARTICLE 131. Administrative Appeals. Decisions in administrative cases may, within thirty (30) days from
receipt
thereof,
be
appealed
to
the
following:
(a) The sangguniang panlalawigan, in the case of decisions of the sangguniang panlungsod of component cities
and
the
sangguniang
bayan;
and
(b) The Office of the President, in the case of decisions of the sangguniang panlalawigan, the sangguniang
panlungsod of highly-urbanized cities and independent component cities, and the sangguniang bayan of
municipalities
within
MMA.
Decisions

of

the

Office

of

the

President

shall

be

final

and

executory.

(c) If no appeal is made within thirty (30) days from receipt of the decision, the decision shall become final and
executory.
ARTICLE 132. Execution Pending Appeal. An appeal shall not prevent a decision from becoming final or
executory. The respondent shall be considered as having been placed under preventive suspension during the
pendency of an appeal. In the event the appeal results in an exoneration, he shall be paid his salary and such
other emoluments accruing during the pendency of the appeal.
RULE XX
Local Initiative and Referendum
ARTICLE 133. Local Initiative Defined. Local initiative is the legal process whereby the registered voters of
an LGU may directly propose, enact, or amend any ordinance through an election called for the purpose.
ARTICLE 134. Who may Exercise. The power of initiative may be exercised by all the registered voters of
provinces, cities, municipalities, or barangays, and metropolitan political subdivisions as may be created by
law.
ARTICLE 135. Procedure in Local Initiative. (a) The exercise of the power of initiative shall commence

with

the

filing

of

petition

with

the

sanggunian

concerned.

(b) Not less than one thousand (1,000) registered voters in case of provinces and cities; one hundred (100) in
case of municipalities, and fifty (50) in case of barangays, may file a petition with the sanggunian concerned
proposing
the
adoption,
enactment,
repeal,
or
amendment
of
an
ordinance.
(c) If no favorable action thereon is taken by the sanggunian concerned within thirty (30) days from the
presentation of the petition, the proponents, through their duly authorized and registered representatives, may
invoke their power of initiative, giving notice thereof to the sanggunian concerned.
ARTICLE 136. Petition. A petition is a written instrument containing the proposition and the required
number
of
signatories
in
the
form
to
be
prescribed
by
the
COMELEC.
A

petition

shall

state

the

following:

(a) Contents or text of the proposed ordinance sought to be enacted, approved or rejected, amended or
repealed,
as
the
case
may
be;
(b)

The

(c)
(d)

The
That

(e)
(f)

proposition;

it

is

not

Signatures
A

reasons

one

of

of

formal

the

limitations

the

designation

therefore;
provided

petitioners
of

their

in
or

duly

Article

150

of

registered
authorized

this

Rule;

voters;
representatives;

(g) An abstract or summary proposition in not more than one hundred (100) words which shall be legibly
written
or
printed
at
the
top
of
every
page
of
the
petition.
ARTICLE 137. The Proposition. (a) The proposition is the measure proposed by the voters.
(b)
(c)

The
Two

proposition
(2)

or

shall
more

be

numbered
propositions

serially
may

starting
be

from

submitted

Roman
in

an

Numeral

I.

initiative.

(d) The COMELEC or its designated representative shall extend assistance in the formulation of the
proposition.
ARTICLE 138. Copies of Petition and Notice. (a) If the subject of the initiative is a provincial ordinance, the
proponents shall furnish the provincial election supervisor sufficient number of copies of the petition and
notice
for
distribution
to
the
election
registrars
in
the
province.
(b) If the subject is a city ordinance, the proponents shall furnish the election registrar sufficient number of
copies of the petition and notice for distribution to the barangays within the city.

(c) If the subject is a municipal ordinance, the proponents shall furnish the provincial election registrar
sufficient number of copies of the petition and notice for distribution to the barangays in the municipality.
(d) If the subject is a barangay ordinance, the proponents shall furnish the provincial election registrar
sufficient
number
of
copies
of
the
petition
and
notice.
(e) The proponents shall likewise furnish copies of the petition and notice to the COMELEC in Manila,
through its executive director and its Election Records and Statistics Department.
ARTICLE 139. Posting. Upon receipt of the petition and notice, all election officers concerned shall cause
copies thereof to be posted conspicuously in public places in the LGU concerned, together with a notice of the
dates
of
signing
in
accordance
with
the
following
article.
ARTICLE 140. Schedule of Signing of Petition. Upon receipt of the notice and petition, the election officer
in the LGU concerned shall schedule the signing of the petition in the LGU.
The collection of signatures shall commence on the first Saturday and Sunday following receipt thereof, and
every Saturday and Sunday thereafter for a period of ninety (90) days for provinces and cities, sixty (60) days
for
municipalities,
and
thirty
(30)
days
for
barangays.
Signing

may

also

be

done

on

weekdays

in

the

office

of

the

proper

election

registrar.

ARTICLE 141. Signature Stations. Stations for collecting signatures may be established in as many places
as may be warranted and as far as practicable, in public school buildings nearest the residence of the voters.
For this purpose, the election registrar may cluster existing precincts into signature stations at a ratio of one
(1)
signature
station
for
every
ten
(10)
precincts.
Each signature station shall be under the supervision of a public school teacher designated by the election
registrar.
ARTICLE 142. Procedure for Signing of Petition. On any of the days scheduled for the signing of the
petition, any registered voter in an LGU concerned, may assign the petition. The petition shall be signed before
the election registrar, or his designated representatives, in the presence of a representative of the proponent
and a representative of the sanggunian concerned, in a public place in the LGU concerned.
The signatures of the voters shall be affixed on the form prescribed by the COMELEC. Each voter shall affix
his signature over his printed name and address. All illiterate or disabled voter, who is currently registered as
such, shall be assisted by a person of his confidence. The election registrar shall have custody of all the forms
used
during
the
signing.
ARTICLE 143. Verification of Signatures. The election registrar or his representative shall , during the
period of signing, verify the genuineness and authenticity of the signatures by referring to the book of voters,
voter's affidavits and voters' identification cards used in the immediately preceding election. The election
registrar shall cancel any signature on the ground that it is forged or falsified, or that the signatory is not a
registered voter, or that the signature of the voter appears more than once in the same or other forms. The

determination by the election registrar of the genuineness and authenticity of the signatures shall be final.
ARTICLE 144. Certification of Number of Registered Voters. Upon receipt of a copy of the notice referred
to in Article 139 of this Rule, the Election Records and Statistics Department of the COMELEC shall certify to
the total number of registered voters in the constituency to which the initiative pertains, and immediately, send
the certification to the highest local election officer of the LGUs affected. For initiatives on local laws before
the 1992 general elections, the said Election Records and Statistics Department shall, wherever proper, use as
basis the registration records for the January 18, 1988 local elections. Thereafter, the basis shall be the
registration records of the general and local elections immediately preceding the initiative.
Upon receipt of the certification from the Election Records and Statistics Department, the regional election
directors, provincial election supervisor, or election registrar, as the case may be, shall post a copy of the
certification
on
the
bulletin
board
of
his
office.
ARTICLE 145. Number of Signatures Required. (a) A local initiative affecting an ordinance passed by the
sanggunian of a province or a city is deemed validly initiated if the petition therefore is signed by at least ten
percent (10%) of the registered voters in the province or city, of which every legislative district must be
represented by at least three percent (3%) of the registered voters therein. If the province or city is composed
of only one legislative district, at least each municipality in the province or each barangay in a city must be
represented
by
at
least
three
percent
(3%)
of
the
registered
voters
therein.
(b) An initiative on municipal ordinance shall be deemed validly initiated if the petition therefore is signed by
at least ten percent (10%) of the registered voters in the municipality, of which every barangay must be
represented
by
at
least
three
percent
(3%)
of
the
registered
voters
therein.
(c) An initiative on a barangay ordinance is deemed validly initiated if signed by at least ten percent (10%) of
the
registered
voters
in
said
barangay.
ARTICLE 146. Determination of Percentage and Certification, and Action by the COMELEC. Upon the
lapse of the period for collecting signatures, the COMELEC, through its office in the LGU concerned, shall
determine and certify whether or not the required number of signatures has been obtained. Failure to obtain
the required number defeats the proposition. Within fifteen (15) days from receipt of the certification, the
COMELEC shall act on the findings of sufficiency or insufficiency of the petition for initiative.
ARTICLE 147. Call for Initiative by the COMELEC. If the required number of signatures is obtained, the
COMELEC shall set a date for the initiative during which the proposition shall be submitted to the registered
voters in the LGU concerned for their approval within sixty (60) days from the date of certification by the
COMELEC in case of provinces and cities, forty-five (45) days in case of municipalities, and thirty (30) days in
case of barangays. The initiative shall then be held on the date set, after which the results thereof shall be
certified
and
proclaimed
by
the
COMELEC.
ARTICLE 148. Effectivity of Local Propositions. If the proposition is approved by a majority of the votes
cast, it shall take effect fifteen (15) days after certification by the COMELEC as if affirmative action thereon
had
been
made
by
the
local
chief
executive
and
the
sanggunian
concerned.
If the proposition fails to obtain the required number of votes, the proposition is considered defeated.

ARTICLE 149. Limitations on Local Initiative. (a) The power of local initiative shall not be exercised more
than
once
a
year.
(b) An initiative shall extend only to subjects or matters which are within the legal powers of the sanggunians
to
enact.
(c) If at any time before the initiative is held, the sanggunian concerned adopts in toto the proposition
presented and the local chief executive approves the same, the initiative shall be cancelled. Those against such
action may, if they so desire, apply for initiative in the manner provided in this Rule.
ARTICLE 150. Local Referendum Defined. Local referendum is the legal process whereby the registered
voters of LGUs may approve, amend, or reject any ordinance enacted by the sanggunian through an election
held
for
the
purpose.
ARTICLE 151. Procedure in Local Referendum. (a) Any sanggunian may submit to the registered voters of
any province, city, municipality, and barangay for approval or rejection any ordinance or resolution duly
enacted
or
approved
by
said
sanggunian.
(b) The local referendum shall be held under the control and direction of the COMELEC within sixty (60) days
in the case of a province or a city, forty-five (45) days in case of a municipality, and thirty (30) days in case of a
barangay. The COMELEC shall certify and proclaim the results of the said referendum.
(c) The manner of securing the required number of signatures and other requisites for local referendum shall
be
the
same
as
those
for
local
initiative.
ARTICLE 152. Limitations Upon Sanggunian. Any proposition or ordinance approved through the system
of initiative and referendum shall not be repealed, modified or amended by the sanggunian concerned within
six (6) months from the date of approval thereof. Such proposition or ordinance may, however, be amended,
modified or repealed by the sanggunian three (3) years thereafter by a vote of three-fourths (3/4) of all its
members provided that in case of barangays, the period shall be eighteen (18) months after the approval
thereof.
ARTICLE 153. Authority of Courts. Nothing in this Rule shall prevent or preclude the proper courts from
declaring null and void any proposition or ordinance approved in accordance with this Rule for violation of
the Constitution or want of capacity of the sanggunian concerned to enact the said measure.
RULE XXI
Recall
ARTICLE 154. By Whom Exercised. The power of recall for loss of confidence shall be exercised by the
registered voters of an LGU to which the elective local official subject to such recall belongs.
ARTICLE 155. Who May Be Recalled. Any elective provincial, city, municipal or barangay official may be
recalled for loss of confidence in the manner prescribed in this rule provided that no recall may be instituted
against said elective local official who has been the subject of a previous recall election held during the same

term

of

office.

ARTICLE 156. Preparatory Recall Assembly. There shall be a preparatory recall assembly in every
province, city, legislative district, and municipality which shall be composed of the following:
(1) Province all mayors, vice-mayors and sanggunian members of component cities and municipalities;
(2)
(3)

City

Legislative

all

punong
District

barangay

all

and
elective

sangguniang
barangay

barangay
officials

members
of

the

of

the

district;

city;
and

(4) Municipality all punong barangay and sangguniang barangay members of the municipality.
ARTICLE 157. Recall Procedures. (a) Recall may be initiated by the preparatory recall assembly or by the
registered voters of the LGU to which the elective local official subject to such recall belongs.
(b) Recall of any elective provincial, city, municipal or barangay official may also be validly initiated upon
petition of at least twenty-five percent (25%) of the total number of registered voters in an LGU concerned
during the election in which the elective local official sought to be recalled was elected.
(c) A majority of all the preparatory recall assembly members may convene in session in a public place and
initiate a recall proceeding against any elective local official in the LGU concerned. Recall of provincial, city or
municipal officials shall be validly initiated through a resolution adopted by a majority of all the members of
the preparatory recall assembly concerned during its session called for the purpose.
(d) A written petition for recall duly signed before the election registrar or his representative, and in the
presence of a representative of the petitioner and a representative of the official sought to be recalled, and in a
public place in the province, city, municipality or barangay, as the case may be, shall be filed with the
COMELEC through its office in the LGU concerned. The COMELEC or its duly authorized representative
shall cause the publication of the petition in a public and conspicuous place for a period of not less than ten
(10) days nor more than twenty (20) days, for the purpose of verifying the authenticity and genuineness of the
petition
and
the
required
percentage
of
voters.
(e) Upon the lapse of the period for publication of the petition, the COMELEC or its duly authorized
representative shall announce the acceptance of candidates to the position and thereafter prepare the list of
candidates which shall include the name of the official sought to be recalled.
ARTICLE 158. Election on Recall. Upon filing of a valid resolution or petition for recall with the
appropriate local office of the COMELEC, the COMELEC or its duly authorized representative shall set the
date of the election on recall, which shall not be later than thirty (30) days after the filing of the resolution or
petition for recall in the case of the elective barangay, city or municipal officials, and forty-five (45) days in the
case of provincial officials. The official or officials sought to be recalled shall automatically be considered as
duly registered candidate or candidates to the pertinent positions and, like other candidates, shall be entitled to
be
voted
upon.
ARTICLE 159. Effectivity. The recall of an elective local official shall be effective only upon the election and

proclamation of a successor in the person of the candidate receiving the highest number of votes cast during
the election on recall. Should the official sought to be recalled receive the highest number of votes, confidence
in
him
is
thereby
affirmed,
and
he
shall
continue
in
office.
ARTICLE 160. Prohibition from Resignation. The elective local official sought to be recalled shall not be
allowed
to
resign
while
the
recall
process
is
in
progress.
ARTICLE 161. Limitations. Any elective local official may be the subject of a recall election only once
during his term of office for loss of confidence. No recall shall take place within one (1) year from the date of
the official's assumption to office or one (1) year immediately preceding a regular local election.
ARTICLE 162. Expenses Incident to Recall Election. All expenses incidental to recall elections shall be
borne by the COMELEC. For this purpose, there shall be included in the annual General Appropriations Act
a contingency fund at the disposal of the COMELEC for the conduct of recall elections.
RULE XXII
Human Resource Management and Development
ARTICLE 163. Organizational Structure and Staffing Pattern. Every LGU shall design and implement its
own organizational structure and staffing pattern taking into consideration its priority needs, service
requirements, and financial capabilities consistent with the principles on simplicity, efficiency, economy,
effectiveness, dynamism, and public accountability, subject to the minimum standards and guidelines
prescribed
therefore
by
CSC.
ARTICLE 164. Responsibility for Human Resource Management and Development; Applicable Laws. (a)
An LGU may reorganize through the sanggunian its present organizational structure or alter its present
staffing pattern in accordance with laws pertinent to government reorganization and implementing rules and
regulations
issued
thereunder.
(b) The local chief executive shall be responsible for human resource management and development in his
LGU and shall take all personnel actions in accordance with the constitutional provisions on civil service,
pertinent laws, rules and regulations, including such policies, guidelines, and standards as CSC may prescribe.
For this purposes, the local chief executive may avail of the services of the Local Government Academy and
other
learning
institutions.
(c) The presiding officer of the sanggunian shall, where applicable, be responsible for human resource
management and development and shall take all personnel actions in accordance with civil service law, rules
and
regulations.
(d) The local chief executive may employ emergency or casual employees or laborers paid on a daily wage or
piecework basis and hired through job orders for local projects authorized by the sanggunian concerned,
without need of approval or attestation by CSC provided that the period of employment of emergency or
casual
laborers
shall
not
exceed
six
(6)
months.
ARTICLE 165. Recruitment and Selection. Opportunity for employment in an LGU shall be open to all
qualified candidates. Utmost effort shall be exerted to attract the best qualified to enter the local government

service.

Employees

shall

be

selected

on

the

basis

of

merit

and

fitness.

ARTICLE 166. Personnel Selection Board. (a) There shall be established in every province, city or
municipality a personnel selection board to assist the local chief executive or, where applicable, the presiding
officer of the sanggunian, in the judicious and objective selection of personnel for employment as well as for
promotion.
(b) The personnel selection board shall be composed of the local chief executive or his duly authorized
representative as chairman, and members to be determined by resolution of the sanggunian concerned in
accordance with pertinent civil service law, rules and regulations. A representative of CSC, if any, and the local
human resource management officer or his equivalent in the LGU concerned, shall be ex officio members of
the
board.
(c) The personnel selection board shall formulate screening procedures and shall adopt criteria for evaluating
candidates for employment or promotion in the first and second levels of the local government career service.
(d) The personnel selection board shall formulate screening policies on employee welfare in accordance with
civil
service
law,
rules
and
regulations.
ARTICLE 167. Public Notice of Vacancy. Whenever a local chief executive decides to fill a vacant career
position, notices of vacancy shall be posted in at least three (3) conspicuous public places for a period of not
less than fifteen (15) days and published once in a newspaper of general circulation in the LGU concerned.
ARTICLE 168. Appointments. (a) Appointments to positions in LGUs, except those classified by law or
competent authority as policy determining, primarily confidential, or highly technical in nature, shall be made
only according to merit and fitness to be determined, as far as practicable, by competitive examinations.
(b) The local chief executive concerned or, where applicable, the presiding officer of the sanggunian shall be
the appointing authority of all officials and employees paid wholly or partially out of local government funds
except
as
otherwise
provided
by
law
or
these
Rules.
(c)

Appointments

to

the

career

service

shall

either

be

permanent

or

temporary:

(1) A permanent appointment shall be issued to a person who meets all the requirements for the position to
which he is appointed, including the appropriate eligibility prescribed by law or regulations.
(2) In the absence of a qualified civil service eligible and whenever public interest so requires to fill a vacancy,
a temporary appointment shall be issued to a person who meets all the requirements for the position to which
he is being appointed except the possession of the appropriate civil service eligibility. Such temporary
appointment shall not exceed twelve (12) months but may be terminated sooner if a qualified eligible becomes
available.
(d) A contractual appointment shall be issued only under the following circumstances or conditions:
(1) The proposed appointee undertakes a specific work or project to be completed within a limited period not
to
exceed
one
(1)
year;

(2) The proposed appointee has a special or technical skill not available in the employing LGU;
(3) The proposed appointee performs or accomplishes his work under his own responsibility with minimum
direction
and
supervision
from
the
hiring
LGU.
(4) In the case of aliens, a contractual appointment may be extended only if it can be shown that there is no
Filipino expert available within the region as certified by the appointing authority.
(5) Due to the temporary nature of contractual appointment, the high quality of expertise desired, the
difficulty of recruitment, or the time constraint for the completion of the assigned tasks, personnel hired on a
contractual basis may be paid a higher compensation than that given to employees occupying similar positions
or performing substantially the same duties and responsibilities but not more than the ceiling fixed by the
appropriate
authority;
and
(6) At least two (2) copies of a duly accomplished Position Description Form shall be forwarded to the
appropriate NGA before the employment contract is finalized. A certification stating the reason for resorting to
contractual
employment
shall
also
be
submitted.
(e) All appointments shall be made in such form, content and supporting documentation as CSC may
prescribe.
(f) Except as otherwise provided by law, appointments shall be submitted to CSC for attestation within thirty
(30) days from the date of issuance thereof; otherwise said appointments shall become ineffective after the
lapse
of
thirty
(30)
days.
(g) Appointments of those who do not meet the appropriate eligibility and required qualifications shall not be
made,
except
in
cases
allowed
by
civil
service
law,
rules
and
regulations.
(h) An appointment issued in accordance with applicable laws, rules and regulations shall take effect
immediately upon its issuance by the appointing authority, and if the appointee has assumed the duties of the
position, he shall be entitled to receive his salary at once without awaiting the attestation of his appointment by
CSC.
(i) The appointing authority shall be liable for the payment of the salary of the appointee for actual services
rendered if the appointment is disapproved because the appointing authority issued it in willful violation of
applicable laws, rules and regulations thereby making the appointment unlawful.
(j) No person shall be appointed in the local government career service if he is related within the fourth civil
degree of consanguinity or affinity to the appointing or recommending authority.
ARTICLE 169. Promotions. (a) Promotions in the local government career service shall be made in
accordance
with
civil
service
law,
rules
and
regulations.
(b)

No

promotion

shall

be

made

unless

recommended

by

the

personnel

selection

board.

ARTICLE 170. Compensation. (a) Compensation of local officials and employees shall be determined by the
sanggunian concerned, subject to the budgetary limitations on personal services provided in Rule XXXIV of
these
Rules
and
other
applicable
laws.
(b) Barangay elective officials shall receive honoraria, allowances and such other emoluments as may be
authorized by law, or city, municipal or barangay ordinance, in accordance with the provisions of the Code,
but in no case shall it be less than One Thousand Pesos (P1,000.00) per month for the punong barangay and
Six Hundred Pesos (P600.00) per month for the sangguniang barangay members provided that the annual
appropriations for personal services shall be subject to the budgetary limitations prescribed in Rule XXXIV of
these
Rules.
(c) No elective or appointive local official or employee shall receive additional, double, or indirect
compensation, unless specifically authorized by law, nor accept without the consent of the Congress, any
present, emoluments, office, or title of any kind from any foreign government. Pensions or gratuities shall not
be
considered
as
additional,
double
or
indirect
compensation.
ARTICLE 171. Working Hours and Attendance. (a) All appointive local officials and employees are
required to render not less than the official hours of work prescribed by law.
(b) When the interest of public service so requires, the local chief executive may extend the daily hours of work
of any or all the officials or employees in his LGU, or require them to work on Saturdays, Sundays and
Holidays. Overtime shall be paid for such additional hours rendered, subject to availability of funds and
applicable
laws.
(c) The local chief executive shall require a daily record of attendance of personnel under him to be kept in the
proper forms prescribed by CSC. A record shall also be made for each day of all absences from duty of any
local
official
or
employee
for
any
cause
and
the
duration
thereof;
and
(d) Elective local officials need not be required to keep a daily record of attendance but their absences shall be
properly
recorded.
ARTICLE 172. Leave Privilege. Elective local officials shall be entitled to the same leave privileges and such
other leave privileges as the law may provide, subject to standards set by CSC, as those enjoyed by appointive
local
officials,
including
cumulation
and
commutation
thereof,
as
follows:
(a) Vacation Leave. After six (6) months of continuous and satisfactory service, officials and employees of an
LGU shall be entitled to fifteen (15) days of vacation leave with full pay for each year of service. Such leave
shall be computed exclusive of Saturdays, Sundays, and Holidays. Local government personnel shall be
encouraged to take an annual five (5) days vacation leave if he has at least a total of ten (10) days vacation
leave
credits
earned
during
the
year.
(b) Sick Leave. Officials and employees of an LGU shall also be entitled to fifteen (15) days sick leave with
full pay for each year of service. Such leave shall be computed exclusive of Saturdays, Sundays, and Holidays.
(c) Maternity Leave. In addition to vacation and sick leave privileges, a married woman in the service of an
LGU shall be entitled to maternity leave of sixty (60) days with pay, subject to the following provisions:

(1) An official or employee shall be entitled to full pay if she has rendered two or more years of continuous
service.
(2) An official or employee shall be entitled to one-half pay if she has rendered less than two (2) years of
continuous
service.
ARTICLE 173. Permission to Leave Station. (a) All appointive local officials going on official travel shall
apply and secure written permission from their respective local chief executives before departure. The
application shall specify the reasons for such travel and the permission shall be given or withheld based on
considerations of public interest, financial capability of the LGU concerned, and urgency of the travel. Should
the local chief executive concerned fail to act on such application within four (4) working days from receipt
thereof,
it
shall
be
deemed
approved.
(b) Mayors of component cities and municipalities shall secure the permission of the governor concerned for
any
travel
outside
of
the
province.
(c) Local government officials traveling abroad shall notify their respective sanggunians provided that when
the period of travel extends to more than three (3) months, during periods of emergency or crisis, or when the
travel involves the use of public funds, permission from the Office of the President shall be secured.
(d) Field officers of NGAs assigned in provinces, cities, and municipalities shall not leave their official stations
without giving prior written notice to the local chief executive concerned. Such notice shall state the duration
of travel and the name of the officer whom he shall designate to act for and in his behalf during his absence.
ARTICLE 174. Grievances. There shall be established in every LGU a grievance committee to inquire into,
act upon, resolve, or settle complaints and grievances presented by local government employees.
ARTICLE 175. Statements of Assets and Liabilities. (a) Officials and employees of LGUs except those who
serve in an honorary capacity, laborers, and casual or temporary workers, shall file:
(1)

sworn

statements

of

assets,

liabilities

and

net

worth;

(2) lists of relatives within the fourth civil degree of consanguinity or affinity in government service;
(3)
(4)

financial
personal

and
data

business
sheets

as

interests;
required

and
by

law.

ARTICLE 176. Oath of Office. All elective and appointive local officials and employees shall, upon
assumption to office, subscribe to an oath or affirmation of office in the prescribed form. The oath or
affirmation of office shall be filed with the office of the local chief executive concerned. A copy of the oath or
affirmation of office shall be preserved in the individual personal record file under the custody of the
personnel office, division, or section, as the case may be, of the LGU concerned.
ARTICLE 177. Practice of Profession. (a) All governors, city and municipal mayors are prohibited from

practicing their profession or engaging in any occupation other than the exercise of their functions as local
chief
executives.
(b) Sanggunian members may practice their professions, engage in any occupation, or teach in schools except
during session hours provided that sanggunian members who are also members of the Bar shall not:
(1) Appear as counsel before any court in any civil case wherein an LGU or any office, agency, or
instrumentality
of
the
government
is
the
adverse
party;
(2) Appear as counsel in any criminal case wherein an officer or employee of the national or local government
is
accused
of
an
offense
committed
in
relation
to
his
office;
(3) Collect any fee for their appearance in administrative proceedings involving the LGU of which he is an
official;
and
(4) Use property and personnel of the government except when the sanggunian member concerned in
defending
the
interest
of
the
government.
(c) Doctors of medicine may practice their profession even during official hours of work only on occasions of
emergency provided that the officials concerned do not derive monetary compensation therefrom.
ARTICLE 178. Partisan Political Activity. (a) No local official or employee in the career service shall:
(1)

Engage

directly

or

indirectly

in

any

partisan

political

activity;

(2) Take part in any election, initiative, referendum, plebiscite, or recall, except to vote;
(3) Use his official authority or influence to cause the performance of any political activity by any person or
body.
(b) The local official or employee may, however, express his views on current issues, or mention the names of
certain
candidates
for
public
office
whom
he
supports.
(c) Elective local officials may take part in partisan political and electoral activities but it shall be unlawful for
them to solicit contributions from their subordinates or subject these subordinates to any of the prohibited acts
under
the
Omnibus
Election
Code,
as
amended.
ARTICLE 179. Prohibited Business and Pecuniary Interest. (a) It shall be unlawful for any local
government
official
or
employee
whether
directly
or
indirectly,
to:
(1) Engage in any business transaction with the LGU in which he is an official or employee or over which he
has the power of supervision, or with any of its authorized boards, officials, agents, or attorneys, whereby
money is to be paid, or property or any other thing of value is to be transferred, directly of indirectly, out of
the
resources
of
LGU
to
such
person
or
firm;
(2)

Hold

such

interests

in

any

cockpit

or

other

games

licensed

by

LGUs;

(3) Purchase any real estate or other property forfeited in favor of an LGU for unpaid taxes or assessment, or
by
virtue
of
a
legal
process
at
the
instance
of
the
said
LGU;
(4) Be a surety for any person contracting or doing business with an LGU for which a surety is required; and
(5)

Possess

or

use

any

public

property

of

an

LGU

for

private

purposes.

(b) All other prohibitions governing the conduct of national public officers relating to prohibited business and
pecuniary interest so provided in RA 6713, otherwise known as the Code of Conduct and Ethical Standards for
Public Officials and Employees, and other laws, rules and regulations shall also be applicable to local
government
officials
and
employees.
ARTICLE 180. Penalty for Engaging in Prohibited Business Transactions or Possessing Illegal Pecuniary
Interest. Any local official and any person or persons dealing with him who violate the prohibitions
provided under Article 180 of this Rule, shall be punished with imprisonment of not less than six (6) months
and one (1) day but not exceeding six (6) years, or a fine of not less than Three Thousand Pesos (P3,000.00) but
not more than Ten Thousand Pesos (P10,000.00), or both such imprisonment and fine, at the discretion of the
court.
RULE XXIII
Local Special Bodies
ARTICLE 181. Local Special Bodies. There shall be organized in the LGU concerned the following local
special
bodies:
(a)
(b)
(c)
(d)
(e)
(f)

Local
Development
Councils;
Prequalification,
Bids
and
Awards
Committees;
Local
School
Boards;
Local
Health
Boards;
Local
Peace
and
Order
Councils;
and
People's
Law
Enforcement
Boards.

Local

ARTICLE 182. Local Development Councils. Every LGU shall have a comprehensive multi-sectoral
development plan to be initiated by the LDC concerned and approved by its sanggunian. For this purpose, the
provincial, city, municipal, or barangay development council, shall assist the corresponding sanggunian in
setting the direction of economic and social development, and coordinating development efforts within its
territorial
jurisdiction.
(a)

Composition.

(1) The provincial development council shall be headed by the governor and shall be composed of the following
members:
(i)

All

mayors

of

component

cities

and

municipalities;

(ii)

The

chairman

(iii)

The

of

the

committee

congressman

on

appropriations

or

of

his

the

sangguniang

representative;

panlalawigan;
and

(iv) Representatives of NGOs operating in the province, who shall constitute not less than one-fourth (1/4) of
the
members
of
the
fully
organized
council.
(2) The city or municipal development council shall be headed by the mayor and shall be composed of the
following
members:
(i)

All

punong

barangays

in

the

city

or

municipality;

(ii) The chairman of the committee on appropriations of the sangguniang panlungsod or sangguniang bayan
concerned;
(iii)

The

congressman

or

his

representative;

and

(iv) Representatives of NGOs operating in the city or municipality, as the case may be, who shall constitute not
less
than
one-fourth
(1/4)
of
the
members
of
the
fully
organized
council.
(3) The barangay development council shall be headed by the punong barangay and shall be composed of the
following
members:
(i)

Members

of

the

sangguniang

barangay;

(ii) Representatives of NGOs operating in the barangay, who shall constitute not less than one fourth (1/4) of
the
members
of
the
fully
organized
council.
(iii)

representative

of

the

congressman.

(4) The LDC may call upon any local or national official in the LGU to assist in the formulation of the
development
plans
and
public
investment
programs
of
the
said
LGU.
(b) Representation of NGOs Within a period of sixty (60) days from organization of LDCs, NGOs shall
choose from among themselves their representatives to said LDCs. The sanggunian concerned shall accredit
NGOs,
subject
to
such
criteria
as
provided
in
Rule
XIII
of
these
Rules.
(c) Reconstitution of LDCs Upon effectivity of these Rules, all existing LDCs organized under EO 319,
series of 1988, as amended, shall be reconstituted in accordance with this Rule.
(d)

Functions

of

LDCs

(1) The provincial, city, and municipal development councils shall perform the following functions:
(i) Formulate long-term, medium-term, and annual socioeconomic development plans and policies;

(ii)
(iii)

Formulate
Evaluate

medium-term
and

and

prioritize

annual

socioeconomic

public

development

investment
programs

programs;
and

projects;

(iv) Formulate local investment incentives to promote the inflow and direction of private investment capital;
(v) Coordinate, monitor, and evaluate the implementation of development programs and projects; and
(vi)

Perform

(2)

The

(i)
(ii)

such
barangay

Mobilize
Prepare

other

functions

development
people's

barangay

as

may

be

provided

council

shall

participation

in

development

plans

by

perform

law
the

local

or

component

following

development

based

on

local

authority.

functions:
efforts;

requirements;

(iii) Monitor and evaluate the implementation of national or local programs and projects; and
(iv)

Perform

such

other

functions

as

may

be

provided

by

law

or

component

authority.

(e) Meetings The LDCs shall meet at least once every six (6) months or as often as may be necessary.
(f) Executive Committee The provincial, city, municipal, or barangay development council shall, by
resolution and within three (3) months from the date of reorganization of the LDC, create an executive
committee to represent and act in behalf of the LDC when it is not in session.
(1)

Composition

(i) The executive committee of the provincial development council shall be composed of the governor as
chairman, the representative of the component city and municipal mayors to be chosen from among
themselves, the chairman of the committee on appropriations of the sangguniang panlalawigan, the president
of the provincial liga ng mga barangay, and a representative of NGOs that are represented in the LDC, as
members.
(ii) The executive committee of the city or municipal development council shall be composed of the mayor as
chairman, the chairman of the committee on appropriations of the sangguniang panlungsod or sangguniang
bayan, the president of the city or municipal liga ng mga barangay, and a representative of NGOs that are
represented
in
the
LDC,
as
members.
(iii) The executive committee of the barangay development council shall be composed of the punong barangay
as chairman, a representative of the sangguniang barangay to be chosen from among its members, and a
representative
of
NGOs
that
are
represented
in
the
LDC,
as
members.
(2) Powers and Functions The executive committee shall exercise and perform the following powers and
functions:

(i)

Ensure

(ii)

Act

that
on

the

decisions

matters

of

that

the

need

LDC

are

immediate

faithfully
attention

carried
and

out

and

action

of

implemented;
the

LDC;

(iii) Formulate policies, plans, and programs based on the objectives and priorities set by the LDC; and
(iv) Take final action on matters that may be authorized by the LDC except the approval of local development
plans
and
annual
investment
plans.
(3) Meetings The executive committee shall hold its meetings at least once a month. Special meetings may be
called
by
the
chairman
or
by
a
majority
of
its
members.
(g)

Sectoral

and

Functional

Committees

(1) The LDCs may form sectoral or functional committees to assist them in the performance of their functions.
(2) To ensure policy coordination and uniformity in operational directions, the sectoral and functional
committees shall directly establish linkages with NGAs and such sectoral or functional committees organized
by
the
government
for
development,
investment
and
consultative
purposes.
(3) Consistent with national policies and standards, the sectoral or functional committees shall:
(i) Provide the LDC with data and information essential to the formulation of plans, programs, and activities;
(ii) Define sectoral or functional objectives, set targets, and identify programs, projects, and activities for the
particular
sector
or
function;
(iii)

Collate

(iv)

Conduct

and

analyze

public

information

hearings

on

and

vital

statistics

issues

and

affecting

conduct
the

related

sector

or

studies;
function;

(v) Coordinate planning, programming, and implementation of programs, projects, and activities within each
sector;
(vi)
(vii)

Monitor
Perform

and
such

other

evaluate
functions

programs
as

may

and
be

assigned

projects;
by

and
the

LDC.

(h) Participation of LDC Members in Sectoral or Functional Committees Each member of the LDC shall, as
far as practicable, participate in at least one sectoral or functional committee.
(i) Secretariat There shall be constituted for each LDC a secretariat responsible for providing technical and
administrative support, documenting proceedings, preparing reports; and providing such other assistance as
may be required by the LDC. The LDC may avail of the services of any NGO or educational or research
institution
for
this
purpose.

The secretariat of the provincial, city, and municipal development councils shall be headed by their respective
local
planning
and
development
coordinators.
The secretariat of the barangay development council shall be headed by the barangay secretary who shall be
assisted by the city or municipal planning and development coordinator concerned.
(j)

Relation

of

LDCs

to

the

Sanggunian

and

the

Regional

Development

Council

(1) The policies, programs, and projects proposed by the LDCs shall be submitted to the sanggunian concerned
for
appropriate
action.
(2) The local development plan approved by the sanggunian shall be integrated into the development plan of
the
next
higher
LDC.
(3) Approved development plans of provinces, highly-urbanized cities, and independent component cities shall
be submitted to the regional development council, which shall be integrated into the regional development plan
for submission to NEDA, in accordance with applicable laws, rules and regulations.
(k) Local Development Planning Process The DILG shall, in coordination and consultation with NEDA and
the leagues of LGUs, formulate the operational guidelines of the local development planning process.
(l) Budget Information The DBM shall furnish LDCs information on financial resources and budgetary
allocations applicable to their respective jurisdictions to guide them in their planning functions.
ARTICLE 183. A Local Prequalification, Bids and Awards Committee. (a) Creation and Composition
There shall be created in every province, city, and municipality a PBAC which shall be primarily responsible
for the conduct of prequalification of contractors, bidding, evaluation of bids, and the recommendation of
awards concerning local infrastructure projects. The governor, city or municipal mayor shall act as chairman
with
the
following
as
members:
(1)

The

chairman

of

the

appropriations

committee

of

the

sanggunian;

(2) A representative of the minority party in the sanggunian, if any, or if there be none, one (1) chosen by the
sanggunian
from
among
its
members;
(3)

The

local

treasurer;

(4) Two (2) representatives of NGOs that are represented in the LDC concerned, to be chosen by the
organizations
themselves;
and
(5) Any practicing certified public accountant, from the private sector, to be designated by the local chapter of
the
Philippine
Institute
of
Certified
Public
Accountants,
if
any.
Representatives of COA shall observe the proceedings of the PBAC and shall certify that the rules and
procedure
for
prequalification,
bids
and
awards
have
been
complied
with.

(b)

Agenda

and

Meetings

(1) The agenda and other information relevant to the meetings of the PBAC shall be deliberated upon by the
committee
at
least
one
(1)
week
before
the
holding
of
such
meetings.
(2) All meetings of the PBAC shall be held in the provincial capitol or the city or municipal hall. The minutes
of such meetings of the committee and any decision made therein shall be duly recorded, posted at conspicuous
places in the provincial capitol or the city or municipal hall, and delivered by the most expedient means to
elective
local
officials
concerned.
(c)

Technical

Committee

(1) A technical committee shall be created in every province, city, and municipality to provide technical
assistance to PBACs. It shall be composed of the local engineer, the local planning and development
coordinator,
and
such
other
officials
designated
by
the
local
PBAC.
(2) The chairman of the technical committee shall be designated by the local PBAC and shall attend its
meetings in order to present the reports and recommendations of the said technical committee.
ARTICLE 184. Local School Boards. (a) Creation and Composition There shall be established in every
province, city or municipality a provincial, city or municipal school board, respectively, in accordance with the
following:
(1) The provincial school board shall be composed of the governor and the division superintendent of schools
as co-chairmen; the chairman of the education committee of sangguniang panlalawigan, the provincial
treasurer, the representative of the pederasyon ng mga sangguniang kabataan in the sangguniang
panlalawigan, the duly elected president of the provincial federation of parents-teachers associations, the duly
elected representative of the teachers' organizations in the province, and the duly elected representative of the
non-academic
personnel
of
public
schools
in
the
province,
as
members;
(2) The city school board shall be composed of the city mayor and the city superintendent of schools as cochairmen; the chairman of the committee on education of the sangguniang panlungsod, the city treasurer, the
representative of pederasyon ng mga sangguniang kabataan in the sangguniang panlungsod, the duly elected
president of the city federation of parents-teachers associations, the duly elected representative of the teachers'
organizations in the city, and the duly elected representative of the non-academic personnel of public schools in
the
city,
as
members;
and
(3) The municipal school board shall be composed of the municipal mayor and the district supervisor of
schools as co-chairmen; the chairman of the committee on education of the sangguniang bayan, the municipal
treasurer, the representative of the pederasyon ng mga sangguniang kabataan in the sangguniang bayan, the
duly elected president of the municipal federation of parents-teachers associations, the duly elected
representative of the teachers' organization in the municipality, and the duly elected representative of the nonacademic
personnel
of
public
schools
in
the
municipality,
as
members.
In the event that a province or city has two (2) or more school superintendents, and in the event that a
municipality has two (2) or more district supervisors, the co-chairman of the local school board shall be

determined

as

follows:

(i) The Department of Education, Culture and Sports (DECS) shall designate the co-chairman for the
provincial
and
city
school
boards;
and
(ii) The division superintendent of schools shall designate the district supervisor who shall serve as cochairman
of
the
municipal
school
board.
(b)

Functions

The

provincial,

city

or

municipal

school

board

shall:

(1) Determine, in accordance with the criteria set by DECS, the annual supplemental budgetary needs for the
operation and maintenance of public schools within the province, city, or municipality, as the case may be, and
the supplementary local cost of meeting such needs, which shall be reflected in the form of an annual school
board budget corresponding to its share of the proceeds of the special levy on real property constituting the
special education fund and such other sources of revenue as the Code and other laws or ordinances may
provide;
(2) Authorize the provincial, city, or municipal treasurer, as the case may be, to disburse funds from the special
education fund pursuant to the budget prepared in accordance with applicable existing rules and regulations;
(3) Serve as advisory committee to the sanggunian concerned on educational matters such as, but not limited
to, the necessity for and the uses of local appropriations for educational purposes; and
(4) Recommend changes in the names of public schools within the territorial jurisdiction of the LGU for
enactment
by
the
sanggunian
concerned.
(c) Consultation The DECS shall consult the local school board on the appointment of division
superintendents,
district
supervisors,
school
principals,
and
other
school
officials.
(d) Prohibition from Delegation The performance of the duties and responsibilities of the officials
mentioned in paragraph (a) of this Article in their respective local school boards shall not be delegated.
(e)

Meetings

and

Quorum

(1) The local school board shall meet at least once a month or as often as may be necessary.
(2) Any of the co-chairmen may call a meeting. A majority of all its members shall constitute a quorum. When
both co-chairmen are present in a meeting, the local chief executive concerned, as a matter of protocol, shall be
given
preference
to
preside
over
the
meeting.
(f) Budget The division superintendent, city superintendent, or district supervisor, as the case may be, shall
prepare the budget of the school board concerned. Such budget shall be supported by programs, projects and
activities of the school board for the ensuing fiscal year. A majority of all the members shall be necessary to
approve
the
budget.
The

annual

school

board

shall

give

priority

to

the

following:

(1) Construction, repair and maintenance of school buildings and other facilities of public elementary and
secondary
schools;
(2)
(3)

Establishment
Holding

of

and

sports

maintenance

activities

at

of

the

extension

division,

classes

district,

when

municipal,

and

necessary;
barangay

and
levels.

(g) Special Education Fund The proceeds from the additional one percent (1%) tax on real property
accruing to the Special Education Fund (SEF) shall be automatically released to the local school boards
provided that in case of provinces, the proceeds shall be divided equally between the provincial and municipal
school boards and provided further, that the proceeds shall be allocated in accordance with Article 327 of Rule
XXXI
of
these
Rules,
as
determined
by
the
local
school
boards.
(h)

Compensation

and

Remuneration

The co-chairmen and members of the provincial, city, or municipal school board shall perform their duties as
such without compensation or remuneration. Members thereof shall be entitled to necessary traveling expenses
and allowances chargeable against the funds of the local school board concerned.
ARTICLE 185. Local Health Boards. (a) Creation and Composition There shall be established in every
province, city, or municipality a local health board composed of the following:
(1) The provincial health board shall be headed by the governor as chairman, the provincial health officer as
vice chairman, and the chairman of the committee on health of the sanggunian panlalawigan, a representative
from the private sector or NGO involved in health services, and a representative of the DOH in the province,
as
members;
(2) The city health board shall be headed by the city mayor as chairman, the city health officer as vice
chairman, and the chairman of the committee on health of the sangguniang panlungsod, a representative from
the private sector or NGO involved in health services, and a representative of the DOH in the city, as
members;
(3) The municipal health board shall be headed by the municipal mayor as chairman, the municipal health
officer as vice chairman, and the chairman of the committee on health of the sangguniang bayan, a
representative from the private sector or NGO involved in health services and a representative of the DOH in
the
municipality,
as
members.
(b)

Functions

The

provincial,

city,

and

municipal

health

boards

shall:

(1) Propose to the sanggunian concerned, in accordance with the standards and criteria set by DOH, annual
budgetary allocations for the operation and maintenance of health facilities and services within the province,
city,
or
municipality,
as
the
case
may
be;
(2) Serve as an advisory committee to the sanggunian concerned on health matters such as, but not limited to,
the necessity for, and application of local appropriations for public health purposes; and

(3) Create committees which shall advise, local health agencies on matters such as, but not limited to, technical
and administrative standards of DOH, personnel selection and promotion, bids and awards, grievances and
complaints, personnel discipline, budget review, operations review and similar functions.
(c)
(1)

Meetings
The

board

shall

meet

and
at

least

once

Quorum
a

month

or

as

often

as

may

be

necessary.

(2) A majority of the members of the board shall constitute a quorum, but the chairman or the vice chairman
must be present during meetings where budgetary proposals are being prepared or considered. The
affirmative vote of a majority of the members shall be necessary to approve such proposals.
(d) Compensation and Remuneration The chairman, vice chairman, and members of the provincial, city, or
municipal health boards shall perform their duties as such without compensation or remuneration. Members
thereof who are not government officials or employees shall be entitled to necessary traveling expenses and
allowances chargeable against the funds of the local health board concerned, subject to existing accounting
and
auditing
rules
and
regulations.
(e) Direct supervision and control of DOH over local health operations In cases of epidemics, pestilence, and
other widespread public health dangers, the Secretary of Health may, upon the direction of the President and
in consultation with the LGU concerned, temporarily assume direct supervision and control over health
operations in any LGU for the duration of the emergency, but in no case exceeding a cumulative period of six
(6) months. With the concurrence of the LGU concerned, the period for such direct national control and
supervision
may
be
further
extended.
ARTICLE 186. Local Peace and Order Councils. There shall be established in every province, city, and
municipality a local peace and order council pursuant to EO No. 309, series of 1988, as amended (Annex C).
The local peace and order councils shall have the same composition and functions as those prescribed by said
executive
order.
ARTICLE 187. People's Law Enforcement Boards. There shall be established in the LGU concerned a
people's law enforcement board (PLEB) pursuant to the pertinent provisions of RA 6975 (Annex D). The
PLEBs shall have the same composition and functions as those prescribed by said law.
ARTICLE 188. Membership of NGOs. Membership of NGOs in local special bodies shall be determined in
accordance with Rule XIII of these Rules.
RULE XXIV
Annual Reports
ARTICLE 189. Submission. On or before March 31 of each year, every local chief executive shall submit an
annual report to the sanggunian concerned on the socioeconomic, political and peace and order conditions,
and other matters concerning the LGU, which shall cover the immediately preceding calendar year. A copy of
the report shall be forwarded to DILG. Component cities and municipalities shall likewise provide the
sangguniang
panlalawigan
concerned
copies
of
their
respective
annual
reports.

ARTICLE 190. Contents of the Report. The annual report shall be comprehensive in scope and, as much as
possible,
be
prepared
in
accordance
with
the
following
form
and
contents:
(a) Message contains important local policies, programs, and activities of the LGU concerned; the status of
their implementation; and other relevant information that affects the lives and welfare of its inhabitants. It
may also contain information on what the populace may expect for the coming year or years. This portion of
the report may be signed solely by the local chief executive or jointly with the sanggunian members concerned.
(b) Executive Summary contains the significant results of local government operations of the year under
review.
(c) Brief Description of the LGU provides information on the LGU's socioeconomic and demographic
profile; political and peace and order conditions; general and sectoral development objectives; physical
framework
plans;
land
use
plans;
and
other
related
information.
(d) Organization and Management identifies the offices and personnel of the LGU, including a description
of their functions, duties, and responsibilities; and describes the role of each office and key personnel. For each
office, the report of accomplishments shall be focused on the delivery of basic services and facilities. Physical
accomplishments may be stated in terms of the number of people served, revenues collected, and kilometers of
roads constructed or maintained. In all cases, physical results correspond with financial expenditures. These
reports may include a comparative statement showing actual accomplishment versus target.
(e) Budget Performance and Financial Statements report on the results of the budgetary and financial
transactions of the LGU for the preceding year. Such data shall include an analysis of performance versus
approved budget, disbursements, and cash balances; comparative data for the year preceding the year under
review; revenue-expenditure pattern for three (3) to five (5) years; efficiency and effectiveness of the LGU in
the delivery of basic services vis-a-vis budgetary expenditures on a sectoral and per capita basis; and financial
statements
duly
certified
by
COA.
(f) Plans, Programs, and Accomplishment describe in narrative and pictorial manner the major plans and
programs of the LGU and its accomplishments during the year under review. Presentation is performanceoriented indicating types of services delivered and projects undertaken in the social or economic fields.
(g) Local Legislation contains the report of the sanggunian in the exercise of its legislative powers such as
budget approval, concurrence with the appointments made by the local chief executive, passage of significant
ordinances
and
resolutions,
and
results
of
oversight
and
review
functions.
(h) Plans and Programs for the Ensuing Year describe the visions, directions, plans, and budgetary thrusts
of
the
LGU
for
the
coming
year.
ARTICLE 191. Distribution and Evaluation of Reports. (a) Two (2) copies of the annual reports shall be
submitted to the central and regional offices of DILG which shall evaluate these annual reports and use the
same for the development and recommendation of integrated and comprehensive technical assistance packages
for
LGUs.

(b) Component cities and municipalities shall likewise submit to the sangguniang panlalawigan copies of their
annual reports. Submission shall be done formally in a sanggunian session called for the purpose of receiving
and reviewing such reports. This occasion may be used by the province to assist the component LGUs in
identifying and defining problems, issues and concerns, development assistance requirements, and possible
formulation
of
interlocal
linkages
for
consideration
of
the
governor.
ARTICLE 192. Special Reports. Whenever necessary, all local chief executives may submit special reports
to the Secretary of DILG on any unusual or unexpected events and occurrences in their localities particularly
if such information deals with internal security or promotes intergovernmental relations.
RULE XXV
Barangay Assembly
ARTICLE 193. Composition. There shall be a barangay assembly in every barangay composed of all
persons
who
are:
(a)
(b)
(c)
(d)

actual
residents
of
the
barangay
fifteen
(15)
years
citizens
of
the
duly
registered
in
the
list

for
of
of

at

least
six
(6)
months;
age
or
over;
Philippines;
and
barangay
assembly
members.

ARTICLE 194. Meetings. (a) The barangay assembly shall meet at least twice a year and discuss the
semestral report of the sangguniang barangay concerning its activities and finances as well as problems
affecting the barangay or of at least four (4) members of the sangguniang barangay, or upon written petition of
at least five percent (5%) of the assembly members which shall be submitted to, and favorably acted upon, by
the
punong
barangay.
(b) A written notice to all barangay assembly members stating the date, time, venue, and purpose of the
meeting shall be posted in three (3) conspicuous places within the barangay one (1) week prior to the meeting
except on matters involving public safety or security, in which case notice within a reasonable time shall be
sufficient.
(c) The punong barangay, or in his absence, the sangguniang barangay member acting as punong barangay, or
any assembly member selected during the meeting, shall act as presiding officer in the meetings of the
assembly.
(d) The barangay secretary, or in his absence, any member designated by the presiding officer to act as
secretary,
shall
discharge
the
duties
of
secretary
of
the
barangay
assembly.
ARTICLE

195.

Powers

of

the

Barangay

Assembly.

The

barangay

assembly

shall:

(a) Initiate legislative processes by recommending to the sangguniang barangay the adoption of measures for
the
welfare
of
the
barangay
and
the
city
or
municipality
concerned;
(b) Decide on the adoption of initiative as a legal process whereby the registered voters of the barangay may

directly

propose,

enact,

or

amend

any

ordinance;

and

(c) Hear and pass upon the semestral report of the sangguniang barangay concerning its activities and
finances.
RULE XXVI
Katarungang Pambarangay
ARTICLE 196. Lupong Tagapamayapa. There shall be created in each barangay a lupong tagapamayapa
composed of the punong barangay as chairman and ten (10) to twenty (20) members. The lupon shall be
constituted
every
three
(3)
years.
ARTICLE 197. Pangkat ng Tagapagkasundo. There shall be constituted for each dispute brought before the
lupon a conciliation panel to be known as the pangkat ng tagapagkasundo consisting of three (3) members who
shall be chosen by the parties to the dispute from the list of members of the lupon.
ARTICLE 198. Economic or Other Incentives. The DILG shall provide a system of granting economic or
other incentives to the lupon or pangkat members who adequately demonstrate the ability to judiciously and
expeditiously
resolve
cases
referred
to
them.
ARTICLE 199. Penalty for Refusal or Failure of Any Party or Witness to Appear before the Lupon or
Pangkat. Refusal or willful failure of any party or witness to appear before the lupon or pangkat in
compliance with summons issued pursuant to this Rule may be punished by the city or municipal court as for
indirect contempt of court upon application filed therewith by the lupon chairman, the pangkat chairman, or
by any of the contending parties. Such refusal or willful failure to appear shall be reflected in the records of
the lupon secretary or in the minutes of the pangkat secretary and shall bar the complainant who fails to
appear, from seeking judicial recourse for the same course of action, and the respondent who refuses to appear,
from filing any counterclaim arising out of, or necessarily connected with the complaint.
ARTICLE 200. Responsibility of the City or Municipal Mayor. The city or municipal mayor, as the case
may be, shall be responsible for the efficient and effective implementation of the katarungang pambarangay.
ARTICLE 201. Implementing Rules and Regulations. The Secretary of Justice shall promulgate the rules
and regulations to implement this Rule which shall form part of these Rules.
RULE XXVII
Sangguniang Kabataan
ARTICLE 202. Katipunan ng Kabataan. (a) Organization and Purpose There shall be an assembly of
youth in every barangay, to be known as katipunan ng kabataan, whose primary objective is to enhance the
social, political, economic, cultural, intellectual, moral, spiritual, and physical development of the youth of the
country.
(b) Composition The katipunan ng kabataan shall be composed of all Filipino citizens actually residing in
the barangay for at least six (6) months, who are at least fifteen (15) but not more than twenty-one (21) years of
age, and who are duly registered in the sanggunian ng kabataan or in the official barangay list in the custody
of
the
barangay
secretary.

(c) Meetings The katipunan ng kabataan shall meet at least once every three (3) months, or at the call of the
chairman of the sangguniang kabataan or upon written petition of at least one-twentieth (1/20) of its members
to
decide
on
important
issues
affecting
the
youth
of
the
barangay.
(d) Rights and Duties of Members Every member of the katipunan ng kabataan is eligible to vote and be
elected in the sangguniang kabataan elections and participate in the programs, projects, and activities of the
barangay as may be adopted by the sangguniang kabataan or the sangguniang barangay, unless otherwise
provided
in
the
Code
and
other
applicable
laws.
ARTICLE

203.

Sangguniang

Kabataan.

(a)

Organization

and

Composition

(1) There shall be in every barangay a sangguniang kabataan composed of a chairman, seven (7) members, a
secretary,
and
a
treasurer.
(2) The chairman and the seven (7) members shall be elected at large by the registered members of the
katipunan
ng
kabataan.
(3) The secretary and the treasurer shall be appointed by the chairman from among the members of the
sangguniang
kabataan,
subject
to
their
concurrence.
(b)

Powers

and

Functions

The

sangguniang

kabataan

shall:

(1) Promulgate resolutions necessary to carry out the objectives of the youth in the barangay in accordance
with
applicable
provisions
of
the
Code;
(2) Initiate programs designed to enhance the social, political, economic, cultural, intellectual, moral, spiritual,
and
physical
development
of
the
members;
(3) Hold fund-raising activities, the proceeds of which shall be tax-exempt and shall accrue to the general fund
of the sangguniang kabataan provided that, in the appropriation thereof, the specific purpose for which such
activity
has
been
held
shall
be
first
satisfied;
(4) Create such bodies or committees as it may be deemed necessary to effectively carry out its programs and
activities;
(5) Submit annual and end-of-term reports to the sangguniang barangay on their projects and activities for the
survival
and
development
of
the
youth
in
the
barangay;
(6) Consult and coordinate with all youth organizations in the barangay for policy formulation and program
implementation;
(7) Coordinate with the Presidential Council for Youth Affairs (PCYA) and other NGAs concerned for the
implementation of youth development projects and programs at the national level; and
(8) Exercise such other powers and perform such other duties and functions as the sangguniang barangay may

determine

or

delegate

or

as

may

be

prescribed

by

law

or

ordinance.

(c) Meetings and Quorum The sangguniang kabataan shall meet regularly once a month on the date, time,
and place to be fixed by the said sanggunian. Special meetings may be called by the sangguniang kabataan
chairman or any three (3) of its members by giving a written notice to all members of the date, time, place, and
agenda of the meetings at least one (1) day in advance. Notices of regular or special meetings shall be furnished
the punong barangay and the members of the sangguniang barangay. A majority of the members of the
sangguniang
kabataan
shall
constitute
a
quorum.
(d) Qualifications of Elective Members An elective official of the sangguniang kabataan must be:
(1)
(2)

A
A

citizen
qualified

voter

of
of

the
the

katipunan

Philippines;
ng

kabataan;

(3) A resident in the barangay for at least one (1) year immediately prior to election;
(4) At least fifteen (15) years but not more than twenty one (21) years of age on the day of his election;
(5) Able to read and write Filipino, any Philippine language or dialect, or English; and
(6) Such elective official must not have been convicted of any crime involving moral turpitude.
(e) Elections and Term of Office (1) The first elections for the sangguniang kabataan to be conducted under
the Code shall be held on June 11, 1992. The members to be elected shall serve from June 30, 1992 to
September
30,
1994.
(2) The regular elections for the sangguniang kabataan members shall be held one hundred twenty (120) days
after the barangay elections in 1994 and the succeeding election shall be held every three (3) years thereafter.
The regular term of office of the sangguniang kabataan members shall be three (3) years, unless sooner
removed for cause as provided by law, permanently incapacitated, die, or resign from office.
(3) The sangguniang kabataan chairman and members will hold office for a period of three (3) years unless
sooner removed for cause as provided by law, permanently incapacitated, die or resign from office.
(4) A sangguniang kabataan official who, during his term of office, shall have passed the age of twenty-one (21)
years shall be allowed to serve the remaining portion of the term for which he was elected.
(5) The conduct and administration of the elections for sangguniang kabataan members shall be governed by
the rules promulgated by the COMELEC. These Rules shall be suppletory in character.
(f) Powers and Duties of the Chairman The registered voters of the katipunan ng kabataan shall elect the
chairman
of
the
sangguniang
kabataan
who
shall:
(1) Serve automatically as ex officio member of the sangguniang barangay upon his assumption to office. As an
ex officio member, he shall exercise the same powers, discharged the same duties and functions and enjoy the

same privileges as the regular sangguniang barangay members, and shall be the chairman of the committee on
youth
and
sports
development
in
the
said
sanggunian;
(2)

Serve

as

member

of

the

barangay

development

council;

and

(3) Represent the sangguniang kabataan in the pederasyon ng mga sangguniang kabataan;
(4) Call and preside over all meetings of the katipunan ng kabataan and the sangguniang kabataan;
(5) Implement policies, programs, and projects within his jurisdiction in coordination with the sangguniang
barangay;
(6) Exercise general supervision over the affairs and activities of the sangguniang kabataan and the official
conduct of its members, and such other officers of the sangguniang kabataan within his jurisdiction;
(7) Appoint with the concurrence of the sangguniang kabataan from among the members of the sangguniang
kabataan, the secretary and the treasurer, and such other officers as may be deemed necessary; and
(8) Exercise such other powers and perform such other duties and functions as may be prescribed by law or
ordinance;
(g)
(1)

Duties
Keep

of
all

the
records

Secretary
of

the

The

katipunan

sangguniang
ng

kabataan

kabataan
and

secretary

sangguniang

shall:
kabataan;

(2) Prepare and keep the minutes of all meetings of the katipunan ng kabataan and sangguniang kabataan;
(3) Prepare all forms necessary for the conduct of registrations, elections, initiatives, referenda, or plebiscites,
in
coordination
with
the
barangay
secretary
and
the
COMELEC;
and
(4) Perform such other duties and discharge such other functions as the chairman of the sangguniang
kabataan
may
prescribe
or
direct.
(h)

Duties

of

the

Treasurer

The

sangguniang

kabataan

treasurer

shall:

(1) Take custody of all sangguniang kabataan property and funds not otherwise deposited with the city or
municipal
treasurer;
(2) Collect and receive contributions, monies, materials, and all other resources intended for the sangguniang
kabataan
and
the
katipunan
ng
kabataan;
(3) Disburse funds in accordance with an approved budget of the sangguniang kabataan;
(4)

Certify

to

the

availability

of

funds

whenever

necessary;

(5) Submit to the sangguniang kabataan and to the sangguniang barangay certified and detailed statements of

actual

income

and

expenditures

at

the

end

of

every

month;

and

(6) Perform such other duties and discharge such other functions as the sangguniang kabataan chairman may
direct.
(i) Privileges The sangguniang kabataan chairman shall have the same privileges enjoyed by other
sangguniang barangay officials under Rule XIV of these Rules, subject to such requirements and limitations
provided in this Rule. During their incumbency, sangguniang kabataan officials shall be exempt from payment
of tuition and matriculation fees while enrolled in public tertiary schools, including state colleges and
universities. The National Government shall reimburse said college or university the amount of the tuition and
matriculation fees provided that to qualify for the privilege, said officials shall enroll in the state college or
university
within
or
nearest
their
area
of
jurisdiction.
(j)

Succession

and

Filing

of

Vacancies

(1) In case a sangguniang kabataan chairman refuses to assume office, fails to qualify, is convicted of felony,
voluntarily resigns, dies, is permanently incapacitated, is removed from office, or has been absent without
leave for more than three (3) consecutive months, the sangguniang kabataan members who obtained the next
highest number of votes in the election immediately preceding shall assume the office of the chairman for the
unexpired portion of the term, and shall discharge the powers and duties, and enjoy the rights and privileges
appurtenant to the office. In case the said member refuses to assume the position or fails to qualify, the
sangguniang kabataan member obtaining the next highest number of votes shall assume the position of the
chairman
for
the
unexpired
portion
of
the
term.
(2) Where two (2) or more sangguniang kabataan members obtained the same next highest number of votes,
the other sangguniang kabataan members shall conduct and election to choose the successor to the chairman
from
among
the
said
members.
(3) After the vacancy shall have been filled, the sangguniang kabataan chairman shall call a special election to
complete the membership of said sanggunian. The duly elected sangguniang kabataan member shall hold
office
for
the
unexpired
portion
of
the
term
of
the
vacant
seat.
(4) In case of suspension of the sangguniang kabataan chairman, the successor, as determined in paragraphs
(2) and (3) above, shall assume the position during the period of such suspension.
ARTICLE 204. Pederasyon ng mga Sangguniang Kabataan (a) Organization There shall be an
organization of all the pederasyon ng mga sangguniang kabataan to be known as follows:
(1)

For

municipalities,

(2)

For

cities,

(3)

For

provinces,

Pambayang

Pederasyon

ng

Sangguniang

Kabataan;

na

Pederasyon

ng

Sangguniang

Kabataan;

Panlalawigang

Pederasyon

ng

Sangguniang

Kabataan;

Panlungsod

(4) For special metropolitan political subdivisions, Pangmetropolitang Pederasyon ng Sangguniang Kabataan;
and

(5)

For

the

national

level,

Pambansang

Pederasyon

ng

Sangguniang

Kabataan.

(b) Election The pederasyon ng mga sangguniang kabataan shall, at all levels, elect from among themselves
the president, vice president and such other officers as may be necessary. Election of officer shall be held thirty
(30)
days
after
the
sangguniang
kabataan
elections.
(c) Composition The pederasyon ng mga sangguniang kabataan shall be organized in the following manner.
(1) The panlungsod and pambayang pederasyon shall be composed of the sangguniang kabataan chairmen of
barangays
in
the
city
and
municipality,
respectively;
(2) The panlalawigan pederasyon shall be composed of presidents of the panlungsod and pambayang
pederasyon;
(3) The pangmetropolitang pederasyon shall be composed of presidents of the panlungsod and pambayang
pederasyon
in
special
metropolitan
political
subdivisions.
(d) Pambansang Katipunan ng mga Sangguniang Kabataan The elected presidents of the pederasyon at the
provincial, highly urbanized city and metropolitan political subdivision levels shall constitute the pambansang
katipunan ng mga sangguniang kabataan and shall hold elections for the pambansang katipunan thirty (30)
days
after
the
panlalawigan
and
pangmetropolitang
pederasyon
elections.
(e) Constitution and By-laws The term of office, manner of election, removal, and suspension of pederasyon
officers shall be governed by the constitution and by-laws of the pederasyon in conformity with the provisions
of
the
Code
and
national
policies
on
youth.
(f)

Ex

Officio

Membership

in

the

Sanggunian

(1) A sangguniang kabataan chairman who is elected as pederasyon president during his tenure of office and
upon certification as such by the COMELEC shall serve as ex officio member of the sangguniang
panlalawigan, sangguniang panlungsod, and sangguniang bayan, as the case may be, without need of further
appointment.
(2) The vice president of the pederasyon whose president has been elected as president of a higher pederasyon
shall serve as ex-officio member of the sanggunian concerned without need of further appointment.
(3) The pederasyon president or vise president, as the case may be, shall be the chairman of the committee on
youth
and
sports
development
of
the
sanggunian
concerned.
(g) Membership in the Local School Board The pederasyon ng mga sangguniang kabataan president shall
serve as member of the local school board in the province, city, and municipality, as the case may be.
(h) Declaration of Vacancy All seats reserved for the pederasyon ng mga sangguniang kabataan in the
different sanggunians shall be deemed vacant until such time that the sangguniang kabataan chairmen shall
have been elected and the respective pederasyon presidents shall have been selected.

(i) National Secretariat The PCYA shall serve as the national secretariat of the pambansang pederasyon.
ARTICLE 205. Funds for the Elections of Sangguniang Kabataan. (a) The amount pertaining to the ten
percent (10%) allocation for the kabataang barangay as provided in Section 103 of BP 337 is hereby
reappropriated for the purpose of funding the first election of the sangguniang kabataan to be held on June 11,
1992. The balance of such funds, if there be any after said elections, shall be administered by the PCYA for the
purpose of training the newly elected sangguniang kabataan officials in the discharge of their functions.
(b) For the regular elections of the sangguniang kabataan, funds shall be taken from the ten percent (10%) of
the barangay funds reserved for the sangguniang kabataan, as provided under these Rules.
ARTICLE 206. Kabataang Barangay Elections. Elections for the kabataang barangay conducted under BP
337 at any time between January 1, 1988 and January 1, 1992 shall be considered as the first elections
provided in the Code. The term of office of the kabataang barangay officials elected within the said period
shall be extended correspondingly to coincide with the term of office of those elected under the Code.
ARTICLE 207. Training of Newly Elected Sangguniang Kabataan Officials. (a) The PCYA shall, in
coordination with the local chief executive concerned, administer a training program for the newly elected
sangguniang
kabataan
officials
with
the
following
objectives:
(1)

Develop

their

leadership

abilities;

(2) Orient them on the pertinent provisions of these Rules, the Code and such other applicable laws, rules and
regulations;
(3)

Enhance

their

organizational

and

managerial

skills;

(4) Increase their awareness and appreciation of such relevant concepts as unity, nationalism, peace,
cooperation, service, concern for the environment, citizenship, and respect for the rule of law; and
(5) Evolve a sustained development training program for the youth in the LGU.
RULE XXVIII
Linggo ng Kabataan
ARTICLE 208. Observance of Linggo ng Kabataan. (a) Every province, city, municipality, and barangay
shall, in coordination with the pederasyon ng mga sangguniang kabataan at all levels, conduct an annual
activity to be known as the Linggo ng Kabataan on such date as shall be determined by the Office of the
President.
(b) The observance of the Linggo ng Kabataan shall include the election of the counterparts of all elective and
appointive local officials, as well as heads of NGAs stationed or assigned in the territorial jurisdiction of the
LGU, among in-school and community youth residing in the LGU concerned from ages thirteen (13) to
seventeen (17). During said week, they shall hold office as boy and girl officials and shall perform such duties
and conduct such activities as may be provided in the ordinance enacted pursuant to this Rule.

ARTICLE 209. Linggo ng Kabataan Activities. The pederasyon ng sangguniang kabataan shall conduct the
following
activities
during
the
Linggo
ng
Kabataan:
(a) Commemoration of young Filipino heroes who made significant contributions to the development of the
country
or
the
locality;
(b) Recognition and awarding of outstanding youth organizations for their achievements and contributions to
development;
and
(c) Awareness campaign on environmental issues, sports festivals and competitions, cultural festivals, arts and
skills exhibition, volunteer work, tour of historical places, and such youth-oriented activities as may be deemed
relevant.
RULE XXIX
Leagues of Local Government Units and Federations
of Other Elective Local Officials
ARTICLE

210.

Liga

ng

mga

Barangay.

(a)

Organization

and

Purpose

(1) There shall be an organization of all barangays, to be known as the liga ng mga barangay.
(2) The said liga shall be organized for the primary purpose of determining the representation of the liga in the
sanggunian and for ventilating, articulating, and crystallizing issues affecting barangay government
administration
and
securing,
through
proper
and
legal
means,
solutions
thereto.
(b) Representation Every barangay shall be represented in the liga by the punong barangay or, in his
absence or incapacity, by a sanggunian member duly elected for the purpose among its members, who shall
attend all meetings or deliberations called by the different chapters of the liga.
(c) Local Chapters and National Liga The liga shall have chapters in the municipality, city, province, and
metropolitan
political
subdivision.
(1) Municipal and City Chapters The municipal and city chapters of the liga shall be composed of the
barangay representatives of municipal and city barangays, respectively. The existing association of barangay
councils in all municipalities and cities shall be recognized as municipal and city chapters of the liga, subject to
the
provisions
of
this
Rule.
(2) Provincial Chapter The duly elected presidents of municipal and component city chapters shall
constitute the provincial chapter. The existing association of barangay councils in the province shall be
recognized as provincial chapters of the liga, subject to the provisions of this Rule.
(3) Metropolitan Chapter The duly elected presidents of the municipal chapters within MMA or such other
metropolitan political subdivision as may be created by law, shall constitute the metropolitan chapter.
(4) National Liga ng mga Barangay The duly elected presidents of highly urbanized city chapters,

provincial chapters, and metropolitan chapters shall constitute the national liga ng mga barangay.
(d)

Ex

Officio

Membership

in

the

Sanggunian

(1) The duly elected presidents of the liga at the municipality, city, and province, including component cities
and municipalities within MMA, or any metropolitan political subdivision as may be created by law, shall
serve as ex officio members of the sangguniang bayan, sangguniang panlungsod, and sangguniang
panlalawigan,
as
the
case
may
be.
(2) They shall serve as ex officio members of the sanggunian concerned only during their term of office as
presidents of the liga chapters, which in no case shall go beyond the term of office of the sanggunian
concerned.
(3) The incumbent presidents of the municipal, city, and provincial chapters of the liga shall continue to serve
as ex officio members of the sanggunian concerned until the expiration of their term of office, unless sooner
removed
for
cause.
(e)

Powers,

Functions

and

Duties

of

the

Liga

ng

mga

Barangay

The

liga

shall:

(1) Give priority to programs designed for the total development of the barangays and consonance with the
policies,
programs
and
projects
of
the
National
Government;
(2) Assist in the education of barangay residents for people's participation in local government administration
in order to promote united and concerted action to achieve countrywide development goals;
(3) Supplement the efforts of government in creating gainful employment within the barangay;
(4)

Adopt

measures

to

promote

the

welfare

of

barangay

officials;

(5) Serve as a forum of the barangays in order to forge linkages with NGAs and NGOs and thereby promote
the
social,
economic,
and
economic
well-being
of
the
barangay;
and
(6) Exercise such other powers and perform such other duties and functions which will bring about the
stronger ties among barangays and promote the welfare of barangay inhabitants.
(f)

Organizational

Structure

(1) The national liga and its local chapters shall directly elect their respective officers, namely: a president, vice
president, and five (5) members of the board of directors. The board shall appoint its secretary and treasurer
and create such other positions as it may deem necessary for the management of the chapter. Pending election
of the presidents of the municipal, city, provincial, and metropolitan chapters of the liga, the incumbent
presidents of the association of barangay councils in the municipality, city, province, and Metropolitan Manila
shall continue to act as presidents of the corresponding liga chapters under this Rule.
(2) A secretary-general shall be elected from among the members of the national liga who shall be responsible
for the overall operation of the liga. Pending election of a secretary-general under this rule, the incumbent

president of the pambansang katipunan ng mga barangay shall act as the secretary-general. The incumbent
members of the board of the pambansang katipunan ng mga barangay, headed by the secretary-general, who
continue to be presidents of the respective chapters of the liga to which they belong, shall constitute a
committee to exercise the powers and duties of the national liga and draft or amend the constitution and bylaws
of
the
national
liga
to
conform
to
the
provisions
of
this
Rule.
(3) The board of directors shall coordinate the activities of the various chapters of the liga.
(g)

Constitution

and

By-Laws

of

the

Liga

(1) All other matters not provided under this Rule affecting the internal organization of the liga shall be
governed by its constitution and by-laws, unless inconsistent with the Constitution and applicable laws, rules
and
regulations.
(2) The committee created in this Article shall formulate uniform constitution and by-laws applicable to the
national liga and all local chapters. The committee shall convene the national liga to ratify the constitution and
by-laws
within
six
(6)
months
from
issuance
of
these
Rules.
(3) Election of the first set of officers of the national liga and local chapters shall be held in accordance with the
duly adopted constitution and by-laws within six (6) months from ratification by the barangay national
assembly.
ARTICLE 211. League of Municipalities. (a) There shall be an organization of all municipalities to be
known as the league of municipalities. The existing municipal mayors league of the Philippines shall be
recognized as the league of municipalities, subject to the provisions of this Rule.
(b) The league shall have the primary purpose of ventilating, articulating, and crystallizing issues affecting
municipal government administration and securing, through proper and legal means, solutions thereto.
(c) Every municipality shall be represented in the league by the municipal mayor or, in his absence, by the vice
mayor or sangguniang bayan member duly elected for the purpose by the members, who shall attend all
meetings
and
participate
in
the
deliberations
of
the
league.
(d)

The

league

shall

form

the

following

local

chapters:

(1) Provincial chapters, composed of municipal mayors or their duly authorized representatives for all
municipalities
of
every
province;
and
(2) Metropolitan chapters, composed of municipal mayors within MMA or other metropolitan political
subdivisions
as
may
be
created
by
law.
The provincial and metropolitan chapters shall carry out the policies and instructions formulated by the
national
board
of
directors.
(e) All municipal mayors in every province and in Metropolitan Manila or a majority thereof shall, on the
second Monday of June, 1992 following their election as mayors, initially convene in their capacity as

representatives of their respective municipalities and elect their provincial and metropolitan chapter
presidents
and
other
officers
from
among
themselves.
(f) A national board of directors shall be organized composed of all provincial and metropolitan chapter
presidents. The national board shall be the policy governing body of the league whose primary functions
consist of formulating general policies for attaining the purpose of the league and approving its annual budget.
ARTICLE 212. League of Cities. (a) There shall be an organization of all cities to be known as the league of
cities. The existing league of cities shall be recognized as the league of cities, subject to the provisions of this
Rule.
(b) The league shall have the primary purpose of ventilating, articulating, and crystallizing issues affecting city
government administration and securing, through proper and legal means, solutions thereto.
(c) Every city shall be represented in the league by the city mayor or, in his absence, by the vice mayor or
sanggunian member duly elected for the purpose by the members, who shall attend all meetings and
participate
in
the
deliberations
of
the
league.
(d) Component cities of province and highly-urbanized cities may form their respective local chapters.
(e) The national leagues shall be composed of the presidents of the chapter of highly-urbanized cities and the
chapter
of
component
cities
of
a
province.
ARTICLE 213. League of Provinces. (a) There shall be an organization of all provinces to be known as the
league of provinces. The existing league of provincial governors shall be recognized as the league of provinces,
subject
to
the
provisions
of
this
Rule.
(b) The league shall have the primary purpose of ventilating, articulating, and crystallizing issues affecting
provincial and metropolitan government administration and securing, through proper and legal means,
solutions thereto. For this purpose, the MMA and any metropolitan political subdivision as may be created by
law
shall
be
considered
as
separate
provincial
units
of
the
league.
ARTICLE 214. Common Provisions for the Leagues of Municipalities, Cities, and Provinces. (a) Powers
and
Functions

The
leagues
shall:
(1) Assist the National Government in the formulation and implementation of policies, programs and projects
affecting
LGUs;
(2)

Promote

local

autonomy;

(3) Adopt measures for the promotion of the welfare of the LGU concerned and its officials and employees;
(4) Encourage people's participation in local government administration in order to promote united and
concerted
action
for
the
attainment
of
countrywide
development
goals.

(5) Supplement the efforts of the National government in creating opportunities for gainful employment within
the
LGUs;
(6) Give priority to programs designed for the total development of LGUs in consonance with the policies,
programs,
and
projects
of
the
National
Government;
(7) Serve as a forum for crystallizing and expressing ideas, seeking the necessary assistance of the National
Government, and providing the private sector avenues for cooperation in the promotion of the welfare of
LGUs;
and
(8) Exercise such other powers and functions as the leagues may prescribe for the welfare of LGUs.
(b) Organizational Structure The leagues of municipalities, cities, and provinces shall elect their respective
chapter-level and national-level boards of directors and sets of officers headed by the president. A secretarygeneral shall be chosen from among the national league members to manage the day-to-day operations and
activities of the national league. The board of directors on the chapter or national level may create such other
positions as may be deemed necessary for the management of the local chapters and of the national leagues.
The national board of directors of the leagues of municipalities, cities, and provinces shall coordinate
programs, projects, and activities of the local chapters and the national league.
The incumbent presidents of the leagues shall act as the concurrent secretary-general of their respective
leagues
until
their
successors
shall
have
been
elected
and
qualified.
(c) Term of Office The term of office of all officers of the leagues in the local chapters and the national
board of directors shall be coterminous with their term of office as municipal or city mayors or provincial
governors,
as
the
case
may
be.
(d)
(1)

Funding
Funds

of

the

leagues

and

the

liga

ng

mga

barangay

shall

be

sourced

from:

(i) Contributions of members LGUs the amount of which shall be prescribed under the constitution and bylaws of the league. The membership fee and annual due shall be charged against any available fund of the
LGU
concerned.
(ii) Fund-raising projects and activities without the necessity of securing permits therefore provided that the
proceeds from said fund-raising projects and activities shall be used primarily to fund projects for which such
proceeds have been raised, subject to the pertinent provisions of the Code and the Omnibus Election Code, as
amended;
and
(iii) Other lawful sources of funds which shall be identified under the constitution and by-laws of the league.
(2) All funds of the league shall be deposited as trust funds in the name of the league and administered by its
treasurer and shall be disbursed in accordance with the board of directors' resolutions, subject to pertinent
accounting and auditing rules and regulations. The treasurer shall be bonded in an amount to be determined
by
the
board
of
directors.

The funds of a chapter shall be deposited as chapter funds and funds of the national league shall be deposited
as
national
funds.
(e)

Constitution

and

By-Laws

(1) The national board of directors shall promulgate and adopt the constitution and by-laws of the league
immediately after the formal organization of the local chapters as provided in this Rule.
(2) The constitution and by-laws of the league shall be ratified by a majority of the members present there
being
a
quorum
in
the
general
assembly
to
be
called
for
the
purpose.
(3) All other matters not provided under this Rule affecting the internal organization of the league shall be
governed by its constitution and by-laws which shall conform to the provisions of the Constitution, the Code,
and
other
applicable
laws.
ARTICLE 215. Federations of Other Elective Local Officials. (a) Organization (1) Vice governors, vice
mayors, sanggunian members of barangays, municipalities, component cities, highly-urbanized cities, and
provinces, and other elective officials of LGUs, including those of MMA and any metropolitan political
subdivision as may be created by law, may form their respective federations, subject to applicable provisions of
this
Rule;
(2) Sanggunian members of component cities and municipalities shall form a provincial federation and elect a
board
of
directors
and
a
set
of
officers
headed
by
the
president.
(3) The duly elected president of the provincial federation of sanggunian members of component cities and
municipalities shall be an ex officio member of the sangguniang panlalawigan concerned and shall serve as
such only during his term of office as president of the said federation, which in no case shall go beyond the
term
of
office
of
the
sangguniang
panlalawigan
concerned.
(b) Constitution and By-Laws The federations shall adopt their respective constitutions and by-laws which
shall govern their respective internal organizations and operations provided that said constitutions and bylaws
conform
to
the
provisions
of
the
Constitution
and
applicable
laws.
(c) Funding The federations may derive their funds from contributions of their members or from fundraising projects or activities. The LGU concerned may appropriate funds to support the federations organized
in
accordance
with
this
Rule,
subject
to
availability
of
funds.
ARTICLE 216. Assistance to the Leagues. The DILG may extend technical and financial assistance and
secretariat services to the leagues of LGUs and federations of other elective local officials upon request.
RULE XXX
Local Government Taxation
PART I
General Provisions

ARTICLE 217. Scope. The following rules and regulations shall govern the exercise by provinces, cities,
municipalities,
and
barangays
of
their
taxing
and
other
revenue-raising
powers.
ARTICLE 218. Power to Create Sources of Revenue. Consistent with the basic policy of local autonomy,
each LGU shall exercise its power to create its own sources of revenue and to levy taxes, fees, or charges,
subject to the provisions of this Rule. Such taxes, fees, or charges shall accrue exclusively to the LGU.
ARTICLE 219. Fundamental Principles. The following fundamental principles shall govern the exercise of
the
taxing
and
other
revenue-raising
powers
of
LGUs:
(a) Taxation shall be uniform in each LGU. The uniformity required is only within the territorial jurisdiction
of
a
province,
a
city,
a
municipality,
or
a
barangay;
(b)
(1)

Taxes,
Be

fees,

equitable

(2)

Be

(3)

Not

and

charges,

based,

as

levied

and

be

unjust,

far

or
as

other

practicable,

collected
excessive,

only

on

impositions
the
for

oppressive,

taxpayer's
public
or

shall:
ability

to

pay;

purposes;
confiscatory;

(4) Not be contrary to law, public policy, national economic policy, or in restraint of trade;
(c) Collection of local taxes, fees, charges, or other impositions shall in no case be let to any private person;
(d) The revenue collected pursuant to the provisions of this Rule shall insure solely to the benefit of, and be
subject to disposition by, the LGU levying the tax, fee, charge, or other imposition unless otherwise specifically
provided
in
this
Rules;
and
(e) Each LGU shall, as far as practicable, evolve a progressive system of taxation.
ARTICLE 220. Definition of Terms. (a) Agricultural Product includes the yield of the soil, such as corn,
rice, wheat, rye, hay, coconuts, sugarcane, tobacco, root crops, vegetables, fruits, flowers, and their byproducts; ordinary salt; all kinds of fish; poultry; and livestock and animal products, whether in their original
form
or
not.
The phrase whether in their original form or not refers to the transformation of said products by the farmer,
fisherman, producer or owner through the application of processes to preserve or otherwise to prepare said
products
for
the
market.
To be considered an agricultural product whether in its original form or not, its transformation must have
been
undertaken
by
the
farmer,
fisherman,
producer
or
owner.
Agricultural products as defined include those that have undergone not only simple but even sophisticated
processes employing advanced technological means in packaging like dressed chicken or ground coffee in
plastic bags or styropor or other packaging materials intended to process and prepare the products for the
market.

The term by-products shall mean those materials which in the cultivation or processing of an article remain
over, and which are still of value and marketable, like copra cake from copra or molasses from sugar cane;
(b) Amusement is a pleasurable diversion and entertainment. It is synonymous to relaxation, avocation,
pastime,
or
fun;
(c) Amusement Places include theaters, cinemas, concert halls, circuses and other places of amusement where
one seeks admission to entertain oneself by seeing or viewing the show or performance;
(d) Business means trade or commercial activity regularly engaged in as a means of livelihood or with a view to
profit;
(e) Banks and Other Financial Institutions include non-bank financial intermediaries, lending investors,
finance and investment companies, pawnshops, money shops, insurance companies, stock markets, stock
brokers and dealers in securities and foreign exchange, as defined under applicable law, or rules and
regulations
thereunder;
(f) Capital Investment is the capital which a person employs in any undertaking, or which he contributes to the
capital of a partnership, corporation, or any other juridical entity or association in a particular taxing
jurisdiction;
(g)

Charges

refers

to

pecuniary

liability,

as

rents

or

fees

against

persons

or

property;

(h) Contractor includes persons, natural or juridical, not subject to professional tax under Article 229 of this
Rule, whose activity consists essentially of the sale of all kind of services for a fee, regardless of whether or not
the performance of the service calls for the exercise or use of the physical or mental faculties of such contractor
or
his
employees.
As used in this Article, the term contractor shall include general engineering, general building and specialty
contractors as defined under applicable laws; filling, demolition and salvage works contractors; proprietors or
operators of mine drilling apparatus; proprietors or operators of dockyards; persons engaged in the
installation of water system, and gas or electric light, heat, or power, proprietors or operators of smelting
plants; engraving, plating, and plastic lamination establishments; proprietors or operators of establishments
for repairing, repainting, upholstering, washing or greasing of vehicles, heavy equipment, vulcanizing,
recapping and battery charging; proprietors or operators of furniture shops and establishments for planing or
surfacing and recutting of lumber, and sawmills under contract to saw or cut logs belonging to others;
proprietors or operators of dry-cleaning or dyeing establishment, steam laundries, and laundries using
washing machines; proprietors or owners of shops for the repair of any kind of mechanical and electrical
devices, instruments, apparatus, or furniture and shoe repairing by machine or any mechanical contrivance;
proprietors or operators of establishments or lots for parking purposes; proprietors or operators of tailor
shops, dress shops, milliners and hatters, beauty parlors, barbershops, massage clinics, sauna, Turkish and
Swedish baths, slenderizing and body-building saloons and similar establishment; photographic studios;
funeral parlors; proprietors or operators of hotels, motels, and lodging houses; proprietors or operators of
arrastre and stevedoring, warehousing, or forwarding establishments, master plumbers, smiths, and house or
sign painters; printers, bookbinders, lithographers; publishers except those engaged in the publication or

printing of any newspaper, magazine, review or bulletin which appears at regular intervals with fixed prices
for subscription and sale as which is not devoted principally to the publication of advertisements; business
agents, private detective or watchman agencies, commercial and immigration brokers, and cinematographic
film
owners,
lessors
and
distributors;
(i) Corporation includes partnerships, no matter how created or organized, joint-stock companies, joint
accounts (cuentas en participacion), associations or insurance companies but does not include general
professional partnerships and a joint venture or consortium formed for the purpose of undertaking
construction projects or engaging in petroleum, coal, geothermal, and other energy operations or consortium
agreement under a service contract with the government. General professional partnerships are partnerships
formed by persons for the sole purpose of exercising their common profession, no part of the income of which
is
derived
from
engaging
in
any
trade
or
business.
The term resident foreign when applied to a corporation means a foreign corporation not otherwise organized
under the laws of the Philippines but engaged in trade or business within the Philippines;
(j) Countryside and Barangay Business Enterprise refers to any business entity, association, or cooperative
registered under the provisions of RA 6810, otherwise known as Magna Carta For Countryside And Barangay
Business
Enterprises
(Kalakalan
20);
(k) Dealer means one whose business is to buy and sell merchandise, goods and chattels as a merchant. He
stands immediately between the producer or manufacturer and the consumers and depends for his profit not
upon the labor he bestows upon his commodities but upon the skill and foresight with which he watches the
market:
(l) Fee means a charge fixed by law or ordinance for the regulation or inspection of a business or activity. It
shall also include charges fixed by law or agency for the services of a public officer in the discharge of his
official
duties;
(m) Franchise is a right or privilege, affected with public interest which is conferred upon private persons or
corporations, under such terms and conditions as the government and its political subdivisions may impose in
the
interest
of
public
welfare,
security,
and
safety;
(n) Gross Sales or Receipts include the total amount of money or its equivalent representing the contract price,
compensation or service fee, including the amount charged or materials supplied with the services and deposits
or advance payments actually or constructively received during the taxable quarter for the services performed
or to be performed for another person excluding discounts if determinable at the time of sales, sales return,
excise
tax,
and
value
added
tax
(VAT);
(o) Manufacturer includes every person who, by physical or chemical process, alters the exterior texture or
form or inner substance of any raw materials or manufactured or partially manufactured product in such
manner as to prepare it for special use or uses to which it could not have been put in its original condition, or
who by any such process, alters the quality of any such raw material or manufactured or partially
manufactured products so as to reduce it to marketable shape or prepare it for any of the use of industry, or
who by any such process, combines any such raw material or manufactured or partially manufactured
products with other materials or products of the same or of different kinds and in such manner that the

finished products of such process or manufacture can be put to a special use or uses to which such raw
material or manufactured or partially manufactured in their original condition could not have been put, and
who in addition, alters such raw material or manufactured or partially manufactured products, or combines
the same to produce such finished products for the purpose of their sale or distribution to others and not for
his
own
use
or
consumption;
(p) Marginal Farmer or Fisherman refers or individual engaged in subsistence farming or fishing which shall
be limited to the sale, barter or exchange of agricultural or marine products produced by himself and his
immediate family, and whose annual net income from such farming of fishing does not exceed Fifty Thousand
Pesos (P50,000.00) or the poverty line established by NEDA for the particular region or locality, whichever is
higher;
(q) Motor Vehicle means any vehicle propelled by any power other than muscular power using the public
roads, but excluding road rollers, trolley cars, street-sweepers, sprinklers, lawn mowers, bulldozers, graders,
forklifts, amphibian trucks, and cranes if not used on public roads, vehicle which run only on rails or tracks,
and tractors, trailers, and traction engines of all kinds used exclusively for agricultural purposes;
(r) Municipal Waters include not only streams lakes and tidal waters within the municipality, not being the
subject of private ownership and not comprised within the national parks, public forest, timber lands, forest
reserves or fishery reserves, but also marine waters included between two lines drawn perpendicularly to the
general coastline from points where the boundary lines of the municipality or city touch the sea at low tide and
a third line parallel with the general coastline and fifteen (15) kilometers from it. Where two (2) municipalities
are so situated on the opposite shores that there is less than fifteen (15) kilometers of marine waters between
them, the third line shall be equally distant from opposite shores of the respective municipalities;
(s) Operator includes the owner, manager, administrator, or any other person who operates or is responsible
for
the
operation
of
a
business
establishment
or
undertaking;
(t) Peddler means any person who, either for himself or on commission, travels from place to place and sells his
goods or offers to sell and deliver the same. Whether a peddler is a wholesale peddler or retail peddler of a
particular commodity shall be determined from the definition of wholesale dealer or retail dealer as provided
in
this
Rule;
(u) Persons mean every natural or juridical being, susceptible of rights and obligations or of being the subject
to
legal
relations;
(v) Residents refer to natural persons who have their habitual residence in the province, city, or municipality
where they exercise their civil rights and fulfill their civil obligations, and to juridical persons for which the
law or any other provision creating or recognizing them fixes their residence in a particular province, city, or
municipality. In the absence of such law, juridical persons are residents of the province, city or municipality
where they have their legal residence or principal place of business or where they conduct their principal
business
or
occupation;
(w) Retail means a sale where the purchaser buys the commodity for his own consumption, irrespective of the
quantity
of
the
commodity
sold;

(x) Vessel includes every type of boat, craft, or other artificial contrivance used, or capable of being used, as a
means
of
transportation
on
water;
(y) Wharfage means a fee assessed against the cargo of a vessel engaged in foreign or domestic trade based on
quantity,
weight,
or
measure
received
and/or
discharged
by
vessel;
and
(z) Wholesale means a sale where the purchaser buys or imports the commodities for resale to persons other
than
the
end
user
regardless
of
the
quantity
of
the
transaction.
ARTICLE 221. Common Limitations on the Taxing and Other Revenue-Raising Powers of Local Government
Units. Unless otherwise provided in this Rule, the exercise of the taxing and other revenue-raising powers of
provinces, cities, municipalities and barangays shall not extend to the levy of the following:
(a) Income tax, except when levied on banks and other financial institutions as provided in Article 233(f) of this
Rule;
(b)

Documentary

stamp

tax;

(c) Taxes on estates, inheritance, gifts, legacies and other acquisitions mortis causa, except as otherwise
provided
in
Article
225
of
this
Rule;
(d) Customs duties, registration fees of vessel and wharfage on wharves, tonnage dues, and all other kinds of
customs fee, charges and dues except wharfage on wharves constructed and maintained by the LGU
concerned;
(e) Taxes, fee, and charges and other impositions upon goods carried into or out of, or passing through the
territorial jurisdictions of LGUs in the guise of charges for wharfage, tolls for bridges or otherwise, or other
taxes, fees or charges in any form whatsoever upon such goods or merchandise;
(f) Taxes, fee, or charges on agricultural and aquatic products when sold by marginal farmers or fishermen;
(g) Taxes on business enterprises certified by the Board of Investments as pioneer or non-pioneer for a period
of
six
(6)
and
four
(4)
years,
respectively,
from
the
date
of
registration;
(h) Excise taxes on articles enumerated under the National Internal Revenue Code (NIRC), as amended, and
taxes,
fees
or
charges
on
petroleum
products;
(i) Percentage or Value Added Tax (VAT) on sales, barters, or exchanges or similar transactions on goods or
services,
except
as
otherwise
provided
herein;
(j) Taxes on the gross receipts of transportation contractors and persons engaged in the transportation of
passengers or freight by hire and common carriers by air, land or water, except on the operation and
franchising
of
tricycles;
(k)

Taxes

on

premiums

paid

by

way

of

reinsurance

or

retrocession;

(l) Taxes, fees, or charges for the registration of motor vehicles and for the issuance of all kinds of licences or
permits
for
the
driving
thereof,
except
tricycles;
(m) Taxes, fees, or other charges on Philippine products actually exported, except as otherwise provided in
Article
233(c)
of
this
Rule;
(n) Taxes, fees, or charges, on countryside and barangay business enterprises and cooperatives duly registered
under RA 6810, and RA 6938, otherwise known as the Cooperatives Code of the Philippines, respectively; and
(o) Taxes, fees or charges of any kind on the National Government, its agencies and instrumentalities, and
LGUs.
ARTICLE 222. Local Taxing Authority. The power to impose a tax, fee, or charge or to generate revenue
under the Code shall be exercised by the sanggunian of the LGU concerned through an appropriate tax
ordinance or revenue measure.
PART II
Provinces
ARTICLE 223. Taxing and Other Revenue-Raising Powers of Provinces. Except as otherwise provided in this
Rule, the province may levy only the taxes, fees and charges as herein provided for.
ARTICLE 224. Tax on Transfer or Real Property Ownership. (a) The province may impose a tax on the
sale, donation, barter, or on any other mode of transferring ownership or title of real property at the rate of
not more than fifty percent (50%) of one percent (1%) of the total consideration involved in the acquisition of
the property or of the fair market value in case the monetary consideration involved in the transfer is not
substantial, whichever is higher. The sale, transfer, or other disposition of real property pursuant to RA 6657
shall
be
exempt
from
this
tax.
The fair market value as used herein shall be that reflected in the prevailing schedule of fair market values
enacted
by
the
sanggunian
concerned.
(b) For this purpose, the registrar of deeds of the province concerned shall, before registering any deed,
require the presentation of the evidence of payment of this tax. The provincial assessor shall likewise make the
same requirement before cancelling an old tax declaration and issuing a new one in place thereof. Notaries
public shall furnish the provincial treasurer with a copy of any deed transferring ownership or title to any real
property
within
thirty
(30)
days
from
the
date
of
notarization.
It shall be the duty of the seller, donor, transferor, executor, or administrator to pay the tax herein imposed
within sixty (60) days from the date of the execution of the deed or from the date of the property owner's
death.
ARTICLE 225. Tax on Business of Printing and Publication. The province may impose a tax on the business
of persons engaged in the printing and/or publication of books, cards, posters, leaflets, handbills, certificates,
receipts, pamphlets, and other printed materials of similar nature, at rate not exceeding fifty percent (50%) of
one percent (1%) of the gross annual receipts for the preceding calendar year.

In the case of a newly started business, the tax shall not exceed one-twentieth (1/20) of one percent (1%) of the
capital investment. In the succeeding calendar year, regardless of when business started to operate, the tax
shall be based on the gross receipts for the preceding calendar year, or any fraction thereof as provided in this
Rule.
The receipts from the printing and/or publishing of books or other reading materials prescribed by DECS as
school
texts
or
references
shall
be
exempt
from
the
tax
herein
imposed.
ARTICLE 226. Franchise Tax. (a) Notwithstanding any exemption granted by any law or other special law,
the province may impose a tax on businesses enjoying a franchise, at a rate not exceeding fifty percent (50%)
of one percent (1%) of the gross annual receipts, which shall include both cash sales and sales on account
realized during the preceding calendar year within its territorial jurisdiction, excluding the territorial limits of
any
city
located
in
the
province.
(b) The province shall not impose the tax on business enjoying franchise operating within the territorial
jurisdiction
of
any
city
located
within
the
province.
(c) The term businesses enjoying franchise shall not include holders of certificates of public convenience for the
operation of public utility vehicles for reason that such certificates are not considered as franchises.
(d) In the case of a newly started business, the tax shall not exceed one twentieth (1/20) of one percent (1%) of
the capital investment. In the succeeding calendar year, regardless of when the business started to operate, the
tax shall be based on the gross receipts for the preceding calendar year, or any fraction thereof, as provided in
this
Article.
The capital investment to be used as basis of the tax of a newly started business as herein provided shall be
determined
in
the
following
manner:
(1) In the locality where the principal office of the business is located, the paid-up-capital stated in the articles
of incorporation, in case of corporations, or in any similar document in case of other types of business
organizations
or
enterprises
shall
be
considered
as
the
capital
investment.
(2) Where there is a branch or sales office which commences business operations during the same year as the
principal office but which is located in another province or in a city outside the province, the paid-up capital
referred to above shall be reduced by the amount of the capital investment made for the said branch or sales
office which shall be taxable instead by the province or city where it is located.
(3) Where the newly started business is a branch or sales office commencing business operations at a year later
than that of the principal office, capital investment shall mean the total funds invested in the branch or sales
office.
ARTICLE 227. Tax on Sand, Gravel, and Other Quarry Resources. (a) The province may levy and collect
not more than ten percent (10%) of fair market value in the locality per cubic meter of ordinary stones, sand,
gravel, earth, and other quarry resources, such as but not limited to marl, marble, granite, volcanic cinders,
basalt, tuff and rock phosphate, extracted from public lands or from the beds of seas, lakes, rivers, streams,

creeks,

and

other

public

waters

within

its

territorial

jurisdiction.

(b) The permit to extract sand, gravel, and other quarry resources shall be issued exclusively by the governor,
pursuant
to
the
ordinance
of
the
sangguniang
panlalawigan.
(c) The proceeds of the tax on sand, gravel, and other quarry resources shall be distributed as follows:
(1)

Province

Thirty

percent

(30%)

(2) Component city or municipality where the sand, gravel and other quarry resources are extracted Thirty
percent
(30%)
(3) Barangay where the sand, gravel, and other quarry resources are extracted Forty percent (40%)
ARTICLE 228. Professional Tax. (a) The province may levy an annual professional tax on each person
engaged in the exercise or practice of his profession requiring government examination at such amount and
reasonable classification as the sangguniang panlalawigan may determine but shall in no case exceed Three
Hundred
Pesos
(P300.00).
(b) Every person legally authorized to practice his profession shall pay the professional tax to the province
where he practice his profession or where he maintains his principal office in case he practices his profession in
several places, provided, however, that such person who has paid the corresponding professional tax shall be
entitled to practice his profession in any part the Philippines without being subjected to any other national or
local
tax,
license,
or
fee
for
the
practice
of
such
profession.
(c) Any individual or corporation employing a person subject to professional tax shall require payment by that
person of the tax on his profession before employment and annually thereafter.
(d) The professional tax shall be payable annually, on or before the thirty-first (31st) day of January. Any
person first beginning to practice a profession after the month of January must, however, pay the full tax
before engaging therein. A line of profession does not become exempt even if conducted with some other
profession for which the tax has been paid. Professionals exclusively employed in the government shall be
exempt
from
the
payment
of
this
tax.
(e) Any person subject to the professional tax shall write in deeds, receipts, prescriptions, reports, books of
account, plans and designs, surveys and maps, as the case may be, the number of the official receipt issued to
him.
(f) The professionals subject to tax herein imposed are only those who have passed the bar examinations, or
any board or other examinations conducted by the Professional Regulation Commission (PRC). For example, a
lawyer who is also a Certified Public Accountant (CPA) must pay the professional tax imposed on lawyers and
that
fixed
for
CPAs,
if
he
is
to
practice
both
professions.
For the purpose of collecting the tax, the provincial treasurer or his duly authorized representative shall
require from such professionals their current annual registration cards issued by competent authority before
accepting payment of their professional tax for the current year. The PRC shall likewise require the
professionals presentation of proof of payment before registration of proof of payment before registration of

professionals

or

renewal

of

their

licenses.

ARTICLE 229. Amusement Tax. (a) The province may levy an amusement tax to be collected from the
proprietors, lessees, or operators of theaters, cinemas, concert halls, circuses, boxing stadia, and other places of
amusement at a rate of not more than thirty percent (30%) of the gross receipts from admission fees.
(b) In the case of theaters or cinemas, the tax shall first be deducted and withheld by their proprietors, lessees,
or operators and paid to the provincial treasurer before the gross receipts are divided between said
proprietors, lessees, or operators and the distributors of the cinematographic films.
(c) The holding of operas, concerts, dramas, recitals, paintings and art exhibitions, flower shows, musical
programs, literary and oratorical presentations except pop, rock or similar concerts shall be exempted from
the payment of the amusement tax, subject to the guidelines issued by DOF.
(d) The sangguniang panlalawigan may prescribe the time, manner, terms and conditions, including the
issuance by proprietor, lessee, or operator of the theater or amusement place of admission tickets for the
payment of tax. In case of fraud or failure to pay the tax the sangguniang panlalawigan may impose such
surcharges,
interests,
and
penalties
as
it
may
deem
appropriate.
(e) The proceeds from the amusement tax shall be shared equally by the province and the municipality where
such
amusement
places
are
located.
ARTICLE 230. Annual Fixed Tax For Every Delivery Truck or Van of Manufacturers or Producers,
Wholesalers of, Dealers or Retailers in, Certain Products. (a) The province may levy an annual fixed tax for
every truck, van, or any motor vehicle used by manufacturers, producers, wholesalers, dealers or retailers in
the delivery or distribution of distilled spirits, fermented liquors, soft drinks, cigars and cigarettes, and other
products as may be determined by the sangguniang panlalawigan, to sales outlets, or consumers, whether
directly or indirectly, within the province in an amount not exceeding Five Hundred Pesos (P500.00).
(b) The manufacturers, producers, wholesalers, dealers, and retailers referred to in the immediately preceding
paragraph (a) hereof shall be exempt from the tax on peddlers prescribed in Article 233 (g) of this Rule.
PART III
Municipalities
ARTICLE 231. Scope of Taxing and Other Revenue-Raising Powers of Municipalities. Unless provided in
this Rule, municipalities may levy taxes, fees, and charges not otherwise levied by the province.
ARTICLE 232. Tax on Business. The municipality may impose taxes on the following businesses:
(a) On manufacturers, assemblers, repackers, processors, brewers, distillers, rectifiers, and compounders of
liquors, distilled spirits, and wines or manufacturers of any article of commerce of whatever kind or nature, in
accordance
with
the
following
schedule:
Gross
For

the

Sales/Receipts
Preceding
Calendar

Amount
Year

of
Tax

Per

Annum

Less
P10,000.00
or
15,000.00
20,000.00
30,000.00
40,000.00
50,000.00
75,000.00
100,000.00
or
150,000.00
or
200,000.00
300,000.00
500,000.00
750,000.00
1,000,000.00
or
2,000,000.00
or
3,000,000.00
or
4,000,000.00
or
5,000,000.00
or
6,500,000.00
M
thirty
seven
of

than

P10,000.00
P165.00
more
but
less
than
15,000.00
220.00
or
more
but
less
than
20,000.00
302.00
or
more
but
less
than
30,000.00
440.00
or
more
but
less
than
40,000.00
660.00
or
more
but
less
than
50,000.00
825.00
or
more
but
less
than
75,000.00
1,320.00
or
more
but
less
than
100,000.00
1,650.00
more
but
less
than
150,000.00
2,200.00
more
but
less
than
200,000.00
2,750.00
or
more
but
less
than
300,000.00
3,850.00
or
more
but
less
than
500,000.00
5,500.00
or
more
but
less
than
750,000.00
8,000.00
or
more
but
less
than
1,000,000.00
10,000.00
more
but
less
than
2,000,000.00
13,750.00
more
but
less
than
3,000,000.00
16,500.00
more
but
less
than
4,000,000.00
19,800.00
more
but
less
than
5,000,000.00
23,100.00
more
but
less
than
6,500,000.00
24,375.00
or
more
at
a
rate
not
exceeding
and
a
half
percent
(37
%)
one
percent
(1%)

The preceding rates shall apply only to amount of domestic sales of manufacturers, assemblers, repackers,
processors, brewers, distillers, rectifiers and compounders of liquors, distilled spirits, and wines or
manufacturers of any article of commerce whatever kind or nature other than those enumerated in paragraph
(c)
of
this
Article.
(b) On wholesalers, distributors, or dealers in any article of commerce of whatever kind or nature in
accordance
with
the
following
schedules:
Gross
For
Less
P1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
8,000.00
10,000.00
15,000.00

Sales/Receipts
Preceding
Calendar

the
or
or
or
or
or
or
or
or
or
or

than
more
more
more
more
more
more
more
more
more
more

but
but
but
but
but
but
but
but
but
but

Amount
Year
P1,000.00
less
less
less
less
less
less
less
less
less
less

than
than
than
than
than
than
than
than
than
than

of
Tax

Per
P18.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
8,000.00
10,000.00
15,000.00
20,000.00

Annum
33.00
50.00
72.00
100.00
121.00
143.00
165.00
187.00
220.00
275.00

20,000.00
30,000.00
40,000.00
50,000.00
75,000.00
100,000.00
150,000.00
200,000.00
300,000.00
500,000.00
750,000.00
1,000,000.00
P2,000,000.00
percent
percent

or
or
or
or
or
or
or
or
or
or
or
or
or

more
more
more
more
more
more
more
more
more
more
more
more
more

but
but
but
but
but
but
but
but
but
but
but
but
at
(50%)

less
than
30,000.00
less
than
40,000.00
less
than
50,000.00
less
than
75,000.00
less
than
100,000.00
less
than
150,000.00
less
than
200,000.00
less
than
300,000.00
less
than
500,000.00
less
than
750,000.00
less
than
1,000,000.00
less
than
2,000,000.00
a
rate
not
exceeding
of
(1%)

330.00
440.00
660.00
990.00
1,320.00
1,870.00
2,420.00
3,300.00
4,400.00
6,600.00
8,800.00
10,000.00
fifty
one

The businesses enumerated in paragraph (a) above shall no longer be subject to the tax on wholesalers,
distributors,
or
dealers
provided
in
this
Article.
(c) On exporters, and on manufacturers, millers, producers, wholesalers, distributors, dealers or retailers of
essential commodities enumerated hereunder at a rate not exceeding one-half (1/2) of the rates prescribed in
paragraphs
(a),
(b)
and
(d)
of
this
Article:
(1)

Rice

and

corn;

(2) Wheat or cassava flour, meat, dairy products, locally manufactured, processed or preserved food, sugar,
salt and other agricultural, marine, and fresh water products, whether in their original state or not;
(3)
(4)

Cooking

oil

Laundry

soap,

and

cooking

detergents,

and

gas;
medicine;

(5) Agricultural implements, equipment and post-harvest facilities, fertilizers, pesticides, insecticides,
herbicides,
and
other
farm
inputs;
(6)
(7)
(8)

Poultry

feeds
School

and

other
supplies;

animal

feeds;
and

Cement.

For purposes of this Article, the term exporters shall refer to those who are principally engaged in the business
of exporting goods and merchandise, as well as manufacturers and producers whose goods or products are
both sold domestically and abroad. The amount of export sales shall be excluded from the total sales and shall
be subject to the rates not exceeding one half (1/2) of the rates prescribed under paragraphs (a), (b) and (d) of
this
Article.

(d)

On

Gross
For

the

retailers,

Sales/Receipts
Preceding

P400,000.00
more

Rate
Year

or

of
Per

less
P400,000.00

than

Tax
Annum
2%
1%

The rate of two percent (2%) per annum shall be imposed on sales not exceeding Four Hundred Thousand
Pesos (P400,000.00), while the rate of one percent (1%) per annum shall be imposed on sales in excess of the
first
Four
Hundred
Thousand
Pesos
(P400,000.00).
Barangays, however, shall have the exclusive power to levy taxes, as provided under Article 241 (a) of this
Rule, on gross sales or receipts of the preceding calendar year of Fifty Thousand Pesos (P50,000.00) or less, in
the case of cities, and Thirty Thousand Pesos (P30,000.00) or less, in the case of municipalities.
(e) On contractors and other independent contractors, in accordance with the following schedule:
Gross
For

Sales/Receipts
Preceding
Calendar

the

Less
P5,000.00
10,000.00
15,000.00
20,000.00
30,000.00
40,000.00
50,000.00
75,000.00
100,000.00
150,000.00
200,000.00
250,000.00
300,000.00
400,000.00
500,000.00
750,000.00
1,000,000.00
2,000,000.00
fifty

or
or
or
or
or
or
or
or
or
or
or
or
or
or
or
or
or
or
percent

than
more
more
more
more
more
more
more
more
more
more
more
more
more
more
more
more
more
more
(50%)

but
but
but
but
but
but
but
but
but
but
but
but
but
but
but
but
but

Amount
Year

P5,000.00
less
less
less
less
less
less
less
less
less
less
less
less
less
less
less
less
less
at
of

than
than
than
than
than
than
than
than
than
than
than
than
than
than
than
than
than
a
one

of
Tax

Per

P27.50
10,000.00
15,000.00
20,000.00
30,000.00
40,000.00
50,000.00
75,000.00
100,000.00
150,000.00
200,000.00
250,000.00
300,000.00
400,000.00
500,000.00
750,000.00
1,000,000.00
2,000,000.00
rate
not
percent

Annum
61.60
104.50
165.00
275.00
385.00
550.00
880.00
1,320.00
1,980.00
2,640.00
3,630.00
4,620.00
6,160.00
8,250.00
9,250.00
10,250.00
11,500.00
exceeding
(1%)

(f) On banks and other financial institutions, at rate not exceeding fifty percent (50%) of one percent (1%) on
the gross receipts of the preceding calendar year derived from interest, commissions and discounts from
lending activities, income from financial leasing, dividends, rentals on property and profit from exchange or

sale

of

property,

insurance

premium.

All other income and receipts of banks and financial institutions not otherwise enumerated above shall be
excluded
from
the
taxing
authority
of
the
LGU
concerned.
(g) On peddlers engaged in the sale of any merchandise or article of commerce, at a rate not exceeding Fifty
Pesos
(P50.00)
per
peddler
annually.
Delivery trucks, vans, or motor vehicles used by manufacturers, producers, wholesalers, dealers or retailers
enumerated in Article 231 of this Rule shall be exempt from the peddler's tax imposed in this Rule.
(h) On any business, not otherwise specified in the preceding paragraphs which the sanggunian concerned may
deem proper to tax provided that on any business subject to the exercise tax, VAT, or percentage tax under the
NIRC, as amended, the rate of tax shall not exceed two percent (2%) of gross sales or receipts of the preceding
calendar year and provided further, that in line with existing national policy, any business engaged in the
production, manufacture, refining, distribution or sale of oil, gasoline, and other petroleum products shall not
be
subject
to
any
local
tax
imposed
in
this
Article.
The sanggunian concerned may prescribe a schedule of graduated tax rates but in no case to exceed the rates
prescribed
in
this
Article.
ARTICLE 233. Fees and Charges. The municipality may impose and collect such reasonable fees and
charges on businesses and occupations and, except as reserved to the province in Article 229 of this Rule, on
the practice of any profession or calling before any person may engage in such business or occupation, or
practice such profession or calling provided that such fees or charges shall only be commensurate to the cost of
issuing the license or permit and the expenses incurred in the conduct of the necessary inspection or
surveillance.
No such fee or charge shall be based on capital investment or gross sales or receipts of the person or business
liable
therefore.
ARTICLE 234. Fees for Sealing and Licensing of Weights and Measures. (a) The municipality may levy fees
for the sealing and licensing of weights and measures at such reasonable rates as shall be prescribed by the
sangguniang
bayan.
(b) The sangguniang bayan shall enact an appropriate ordinance prescribing the necessary regulations for the
use of weights and measures which shall be in accordance with such guidelines as may be prescribed by the
Department of Science and Technology. The ordinance enacted for the purpose shall also prescribe the
penalties for violations, fraudulent practices, and unlawful possession or use of instruments of weights and
measures including the criminal penalty therefore in accordance with Article 280 of this Rule provided,
however, that the sangguniang bayan concerned may authorize the municipal treasurer to settle an offense not
involving the commission of fraud before a case therefore is filed in court, upon payment of a compromise
penalty
of
not
less
than
Two
Hundred
Pesos
(P200.00).
(c) The ordinance of the sangguniang bayan may also embody such sanctions as may be deemed appropriate
relative to the use of any weight or measure not properly sealed or licensed in accordance with paragraph (b)

of this Article, such as the confiscation of said illegal weight or measure, or the revocation of the permit or
license of the business, and/or the filing of appropriate charges against the owner or operator of the business.
ARTICLE 235. Fishery Rentals, Fees, and Charges. (a) Municipalities shall have the exclusive authority to
grant fishery privileges in the municipal waters and impose rentals, fees, or charges therefore in accordance
with
the
provisions
of
this
Article.
(b)

The

sangguniang

bayan

may:

(1) Grant fishery privileges to erect fish corrals, oyster, mussel, or other aquatic beds or bangus fry areas,
within a definite zone of the municipal waters, as determined by the sangguniang bayan. The sangguniang
bayan may require the conduct of a public bidding provided that duly registered organizations and
cooperatives of marginal fishermen shall have the preferential right to such fishery privileges without being
required to undergo the bidding and provided further that in the absence of such organizations and
cooperatives or failure to exercise their preferential right, other parties may participate in the said public
bidding
in
conformity
with
this
provision.
(2) Grant the privilege to gather, take or catch bangus fry, prawn fry, or kawag-kawag or fry of other species
and fish from the municipal waters by nets, traps or other fishing gears to marginal fishermen free of any
rental,
fee,
charge,
or
any
other
imposition
whatsoever.
(3) Issue licenses for the operation of fishing vessels of three (3) tons or less for which purpose the sangguniang
bayan shall promulgate rules and regulations regarding the issuances of such licenses to qualified applicants
under existing laws provided, however, that the sangguniang bayan concerned shall, by appropriate ordinance,
penalize the use of explosives, noxious or poisonous substances, electricity, muro-ami, and other deleterious
methods of fishing and prescribe a criminal penalty therefore in accordance with the provisions of this Rule
and provided further that the sangguniang bayan concerned shall have the authority to prosecute any
violation
of
the
provisions
of
applicable
fishery
laws.
ARTICLE 236. Rates of Tax in Municipalities Within the Metropolitan Manila Area. (a) The municipalities
within MMA may levy the taxes on businesses enumerated in Article 233 of this Rule at rates which shall not
exceed by fifty percent (50%) the maximum rates prescribed for said businesses.
(b) The said municipalities within MMA, pursuant to Article 275 of this Rule, may levy and collect the taxes
which may be imposed by the province under Article 225, 226, 227, 228, 229, 230 and 231 of this Rule at rates
not exceeding those prescribed therein.
PART IV
Cities
ARTICLE 237. Scope of Taxing and Other Revenue-Raising Powers of Cities. The city may:
(a) Levy and collect any of the taxes, fees, charges and other impositions that the province and the municipality
may impose. The rates of taxes that the city may levy may exceed the maximum rates allowed for the province
or municipality by not more than fifty percent (50%) except the rates of professional and amusement taxes;
and

(b) Levy and collect a percentage tax on any business not otherwise specified under paragraphs (a) to (g),
Article 233 of this Rule, at rates not exceeding three percent (3%) of the gross sales or receipts of the preceding
calendar
year.
ARTICLE 238. Uniform Tax Rates. The rates of the following taxes shall be uniform for the city and the
province:
(a) Professional tax under Article 229 of this Rule which shall not exceed Three Hundred Pesos (P300.00); and
(b) Amusement tax on paid admission under Article 230 of this Rule, the rate of which shall not be more than
thirty
percent
(30%)
of
the
gross
receipts
from
admission
fees.
ARTICLE 239. Sharing of Tax on Sand, Gravel, and Other Quarry Resources. The proceeds of the tax on
sand, gravel and other quarry resources in highly-urbanized cities shall be distributed as follows:
Highly

urbanized

city

Sixty

percent

(60%)

Barangay where the sand, gravel, and other quarry resources are extracted Forty percent (40%)
PART V
Barangays
ARTICLE 240. Scope of Taxing and Other Revenue-Raising Powers of Barangays. The barangays may levy
the following taxes, fees, and charges, which shall exclusively accrue to them.
(a) Taxes on stores or retailers with fixed business establishments with gross sales or receipts of the preceding
calendar year of Fifty Thousand Pesos (P50,000.00) or less, in the case of a barangay within a city, and Thirty
Thousand Pesos (P30,000.00) or less, in the case of a barangay within a municipality, at rates not exceeding one
percent
(1%)
on
such
gross
sales
or
receipts.
(b) Service fees or charges for services rendered in connection with the regulation or the use of barangayowned properties or service facilities such as palay, copra, or tobacco dryers.
(c) Fee for the issuance of a barangay clearance for any business or activity located or conducted within the
territorial jurisdiction of the barangay before the city or municipality may issue a license or permit to said
business
or
activity.
The application for barangay clearance shall be acted upon within seven (7) working days from the filing
thereof. In the event that a clearance is not issued or the application is denied within the said period, the city or
municipality
may
issue
the
license
or
permit
to
the
applicant.
The issuance of a barangay clearance shall not be required during CY 1992 in the case of existing businesses or
activities applying only for renewal of their respective permits or licenses with the city or municipality
concerned.

(d)

Other

(1)

fees

Commercial

and

breeding

charges
of

on:

fighting

cocks.

For purposes of imposing barangay fees and charges on the commercial breeding of fighting cocks,
commercial breeding shall mean an annual sale of more than five (5) fighting cocks of a duly registered
breeder.
(2)
(3)

Cockfights
Places

of

and

recreation

which

cockpits
charge

admission

fees.

Places of recreation shall include places of amusement where one seeks admission to entertain himself by
seeing or viewing the show or performance or those where one amuses himself by direct participation.
(4) Billboards, signboards, neon signs, and outdoor advertisements at rates not less than the following:
(i) Billboards or signboards for advertisement of business, per square meter or fraction thereof:
Single-Faced

Double-Faced

Ten

Pesos

Twenty

(P10.00)

Pesos

(P20.00)

(ii) Billboards or signs for professionals, per square meter or fraction thereof: Eight Pesos (P8.00)
(iii) Billboards, signs, or advertisements for business and professions painted on any building or structures or
otherwise separated or detached therefrom, per square meter thereof: Nine Pesos (P9.00)
(iv) Advertisement for business or professions by means of slides in movies payable by the advertisers: One
Hundred
Pesos
(P100.00)
(v) Advertisements by means of vehicles, balloons, kites, etc. per day or fraction thereof: Forty Pesos (P40.00);
per week or fraction thereof: Sixty Pesos (P60.00); and per month or fraction thereof: Eighty Pesos (P80.00).
For the use of electric or neon lights in billboards under items (i) to (iv) above, the amount of Ten Pesos
(P10.00) per square meter or fraction thereof shall be imposed in addition to the above prescribed rates.
(vi) Signs, signboards, billboards, advertisements, including stickouts, streamers, lighted signs, and other
electronic media, posters, privilege panels, stone signs, placards, price strips, buntings, and the like, belonging
to manufacturers or producers or professionals, but displayed at the place where a business or profession is
conducted, or displayed on delivery or other service and public utility vehicles, shall be exempt from such fees
or charges provided in paragraphs (i) and (ii) above and other impositions that may be imposed by the
barangay.
(vii)

Privilege

panels

shall

be

subject

to

one

half

(1/2)

of

the

rates

herein

prescribed.

(viii) For purposes of this Article, the new rates to be adopted by the barangay shall apply only to billboards,
privilege panels, signs, and outdoor advertisements which shall be constructed or installed after the effectivity
of the Code.
PART VI
Special Provisions
ARTICLE 241. Retirement of Business. (a) Any person natural or juridical, subject to the tax on businesses
under Article 233 of this Rule shall, upon termination of the business, submit a sworn statement of the gross
sales
or
receipts
for
the
calendar
year.
For purposes hereof, termination shall mean that business operations are stopped completely. Any change in
ownership, management and/or name of the business shall not constitute termination as contemplated in this
Article. Unless stated otherwise, assumption of the business by any new owner or manager or registration of
the same business under a new name will only be considered by the LGU concerned for record purposes in the
course
of
the
renewal
of
the
permit
or
license
to
operate
the
business.
The local treasurer concerned shall see to it that the payment of taxes of a business is not avoided by
simulating the termination or retirement thereof. For this purpose, the following procedural guidelines shall be
strictly
observed:
(1) The local treasurer shall assign every application for the termination or retirement of business to an
inspector in his office who shall go to the address of the business on record to verify if it is really no longer
operating. If the inspector finds that the business is simply placed under a new name, manager and/or new
owner, the local treasurer shall recommend to the mayor the disapproval of the application for the termination
or retirement of said business. Accordingly, the business continues to become liable for the payment of all
taxes, fees, and charges imposed thereon under existing local tax ordinances; and
(2) In the case of a new owner to whom the business was transferred by sale or other form of conveyance, said
new owner shall be liable to pay the tax or fee for the transfer of the business to him if there is an existing
ordinance
prescribing
such
transfer
tax.
(b) If it is found that the retirement or termination of the business is legitimate, and the tax due therefrom be
less than the tax due for the current year based on the gross sales or receipts, the difference in the amount of
the tax shall be paid before the business is considered officially retired or terminated.
(c) The permit issued to a business retiring or terminating its operations shall be surrendered to the local
treasurer who shall forthwith cancel the same and record such cancellation in his books.
ARTICLE 242. Related or Combined Businesses. (a) The conduct or operation of two or more related
businesses provided in Article 233 of this Rule by any one person, natural or juridical, shall require the
issuance
of
a
separate
permit
or
license
to
each
business.
(b) If a person conducts or operates two (2) or more related businesses which are subject to the same rate of
imposition, the tax shall be computed on the basis of the combined total gross sales or receipts of the said two
(2)
or
more
related
businesses.

(c) If, however, the businesses operated by one person are governed by separate tax schedules or the rates of
the taxes are different, the taxable gross sales or receipts of each business shall be reported independently and
the tax thereon shall be computed on the basis of the appropriate schedule.
ARTICLE

243.

Situs

of

the

Tax.

(a)

Definition

of

Terms

(1) Principal Office the head or main office of the business appearing in the pertinent documents submitted
to the Securities and Exchange Commission, or the Department of Trade and Industry, or other appropriate
agencies,
as
the
case
may
be.
The city or municipality specifically mentioned in the articles of incorporation of official registration papers as
being the official address of said principal office shall be considered as the situs thereof.
In case there is a transfer or relocation of the principal office to another city or municipality, it shall be the
duty of the owner, operator or manager of the business to give due notice of such transfer or relocation to the
local chief executives of the cities or municipalities concerned within fifteen (15) days after such transfer or
relocation
is
effected.
(2) Branch or Sales Office a fixed place in a locality which conducts operations of the business as an
extension of the principal office. Offices used only as display areas of the products where no stocks or items are
stored for sale, although orders for the products may be received thereat, are not branch or sales offices as
herein contemplated. A warehouse which accepts orders and/or issues sales invoices independent of a branch
with
sales
office
shall
be
considered
as
a
sales
office.
(3) Warehouse a building utilized for the storage of products for sale and from which goods or merchandise
are withdrawn for delivery to customers or dealers, or by persons acting in behalf of the business. A warehouse
that does not accept orders and/or issue sales invoices as aforementioned shall not be considered a branch or
sales
office.
(4) Plantation a tract of agricultural land planted to trees or seedlings whether fruit bearing or not,
uniformly spaced or seeded by broadcast methods or normally arranged to allow highest production. For
purposes of this Article, inland fishing ground shall be considered as plantation.
(5) Experimental Farms agricultural land utilized by a business or corporation to conduct studies, tests,
researches or experiments involving agricultural, agribusiness, marine, or aquatic, livestock, poultry, dairy
and other similar products for the purpose of improving the quality and quantity of goods or products.
On-site sales of commercial quantity made in experimental farms shall be similarly imposed the corresponding
tax
under
Article
233
and
allocated
in
paragraph
(b)
of
this
Article.
(b)

Sales

Allocation

(1) All sales made in a locality where there is a branch or sales office or warehouse shall be recorded in said
branch or sales office or warehouse and the tax shall be payable to the city or municipality where the same is
located.

(2) In cases where there is no such branch, sales office, or warehouse in the locality where the sale is made, the
sale shall be recorded in the principal office along with the sales made by said principal office and the tax shall
accrue
to
the
city
or
municipality
where
said
principal
office
is
located.
(3) In cases where there is a factory, project office, plant or plantation in pursuit of business, thirty percent
(30%) of all sales recorded in the principal office shall be taxable by the city or municipality where the
principal office is located and seventy percent (70%) of all sales recorded in the principal office shall be
taxable by the city or municipality where the factory, project office, plant or plantation is located. LGUs where
only experimental farms are located shall not entitled to the sales allocation provided in this subparagraph.
(4) In case of a plantation located in a locality other than that where the factory is located, the seventy percent
(70%)
sales
allocation
shall
be
divided
as
follows:
(i)
(ii)

Sixty
Forty

percent

(60%)

percent

(40%)

to

the

to

the

city

or

city

or

municipality
municipality

where

the

where

factory

the

is

located;

plantation

is

and

located.

(5) In cases where there are two (2) or more factories, project offices, plants or plantations located in different
localities, the seventy percent (70%) sales allocation shall be prorated among the localities where such
factories, project offices, plants, and plantations are located in proportion to their respective volumes of
production during the period for which the tax is due. In the case of project offices of service and other
independent contractors, the term production shall refer to the cost of projects actually undertaken during the
tax
period.
(6) The sales allocation in paragraph (b) hereof shall be applied irrespective of whether or not sales are made
in the locality where the factory, project office, plant or plantation is located. In case of sales made by the
factory, project office, plant or plantation, the sale shall be covered by subparagraphs (1) or (2) above.
(7) In case of manufacturers or producers which engage the services of an independent contractor to produce
or manufacture some of their products, these rules on situs of taxation shall apply except that the factory or
plant and warehouse of the contractor utilized for the production and storage of the manufacturers' products
shall be considered as the factory or plant and warehouse of the manufacturer.
(c) Port of Loading The city or municipality where the port of loading is located shall not levy and collect
the tax imposable in Article 233 of this Rule unless the exporter maintains in said city or municipality its
principal office, a branch, sales office or warehouse, factory, plant, or plantation in which case, the rule on the
matter
shall
apply
accordingly.
(d)

Sales

made

by

route

trucks,

vans,

or

vehicles

(1) For route sales made in a locality where a manufacturer, producer, wholesaler, retailer or dealer has a
branch or sales office or warehouse, the sale are recorded in the branch, sales office or warehouse and the tax
due thereon is paid to the LGU where such branch, sales office or warehouse is located.
(2) For route sales made in a locality where a manufacturer, producer, wholesaler, retailer or dealer has no
branch, sales office or warehouse the sales are recorded in the branch, sales office or warehouse from where

the route trucks withdraw their products for sale, and the tax due on such sales is paid to the LGU where such
branch,
sales
office
or
warehouse
is
located.
(3) Based on subparagraphs (1) and (2) above, LGUs where route trucks deliver merchandise cannot impose
any tax on said trucks except the annual fixed tax authorized to be imposed by the province in Article 231 of
this Rule on every delivery truck or van or any motor vehicle used by manufacturers, producers, wholesalers,
dealers, or retailers, in the delivery or distribution of distilled spirits, fermented liquors, soft drinks, cigars and
cigarettes, and other products as may be determined by the sangguniang panlalawigan, and by the city,
pursuant
to
Article
223
of
this
Rule.
(4) In addition to this annual fixed tax, cities may also collect from same manufacturers, producers,
wholesalers, retailers, and dealers using route trucks a mayor's permit fee which shall be imposed in a local tax
ordinance pursuant to Article 234 in relation to Article 223 of this Rule.
PART VII
Common Revenue-Raising Powers
ARTICLE 244. Common Revenue-Raising Powers. Provinces, cities, municipalities, and barangays:
(a) May impose and collect fees and service or user charges for any service rendered by LGUs in an amount
reasonably commensurate to such service provided that no service charge shall be based on capital
investments or gross sales or receipts of the persons or business liable therefore.
(b) Shall exercise the power to collect charges for services rendered by LGUs in connection with the operation
of public utilities owned, operated, and maintained by them at rates to be fixed by the sanggunian concerned.
LGUs may prescribe the terms and conditions, through an appropriate ordinance enacted by their
sanggunians, for the use of any public road, pier or wharf, waterway, bridge, or ferry or telecommunication
system, funded and constructed by them, and fix reasonable toll fees and service charges for the use thereof
provided that the following persons shall be exempted from the payment of said toll fees and charges:
(1) Officers and enlisted men of the Armed Forces of the Philippines and members of the Philippine National
Police
on
mission;
(2)
(3)
(4)

Post
Persons
Disabled

Office
who
citizens

personnel
are

who

delivering

physically
are

sixty-five

mail;

handicapped;
(65)

years

and
or

older.

(c) The collection of toll fees and charges may be discontinued by the sanggunian concerned when public safety
and
welfare
so
requires.
ARTICLE 245. Community Tax. Cities or municipalities may levy an annual community tax in lieu of the
residence tax formerly levied and collected in Section 38 of PD 231, as amended. Accordingly, all cities and
municipalities shall enact for the purpose, a tax ordinance to take effect as of January 1, 1992.

For purposes of enactment of a local tax ordinance levying a community tax, the conduct of a public hearing
provided
in
Article
259
of
this
Rule
shall
no
longer
be
required.
ARTICLE 246. Levy or Imposition. The levy or imposition of community tax by a city or municipality shall
be
governed
by
the
following
rules
and
guidelines:
(a)

Individuals

liable

to

the

payment

of

community

tax

(1) Every inhabitant of the Philippines eighteen (18) years of age or over who has been regularly employed on
a wage or salary basis for at least thirty (30) consecutive working days during any calendar years;
(2)

An

individual

who

is

engaged

in

business

or

occupation;

(3) An individual who owns real property with an aggregate assessed value of One Thousand Pesos (P1,000.00)
or
more;
(4)
(b)

An

individual
Rate

of

who

is

required

community

by
tax

law

to

payable

file

an
by

income

tax

individuals

return.

(1) The rate of community tax that may be levied and collected from said individuals shall be Five Pesos
(P5.00) plus an additional tax of One Peso (P1.00) for every One Thousand Pesos (P1,000.00) of income
regardless of whether from business, exercise of profession, or from property but which in no case shall exceed
Five
Thousand
Pesos
(P5,000.00).
(2) In case of husband and wife, each of them shall be liable to pay the basic tax of Five Pesos (P5.00), but the
additional tax imposable on the husband and wife shall be One Peso (P1.00) for every One Thousand Pesos
(P1,000.00) of income from the total property owned by them and/or the total gross receipts or earnings
derived
by
them.
(c) Juridical persons liable to the payment of community tax Every corporation, no matter how created or
organized, whether domestic or resident foreign, engaged in or doing business in the Philippines shall pay
community tax of Five Hundred Pesos (P500.00) and an additional tax, which, in no case, shall exceed Ten
Thousand
Pesos
(P10,000.00)
in
accordance
with
the
following
schedule:
(1) For every Five Thousand Pesos (P5,000.00) worth of real property in the Philippines owned by the juridical
entity during the preceding year, based on the assessed value used for the payment of the real property tax
under
existing
laws

Two
pesos
(P2.00);
and
(2) For every Five Thousand Pesos (P5,000.00) of gross receipts or earnings derived from the business in the
Philippines
during
the
preceding
year

Two
pesos
(P2.00).
The dividends received by a corporation from another corporation shall, for the purpose of the additional tax,
be considered as part of the gross receipts or earnings of said corporation.

(d)
(1)

Exemptions

The

Diplomatic

following

are

and

exempt
consular

from

the

payment

of

community

representatives;

tax:

and

(2) Transient visitors when their stay in the Philippines does not exceed three (3) months.
(e)

Place

of

Payment

(1) Community tax shall be paid in the city or municipality where the residence of the individual is located, or
in the city or municipality where the principal office of the juridical entity is located.
(2) It shall be unlawful for any city or municipal treasurer to collect community tax outside the territorial
jurisdiction
of
the
city
or
the
municipality.
(3) In case of branch, sales office or warehouse where sales are made and recorded, corresponding community
tax shall be paid to the LGU where such branch, sales office or warehouse is located.
(4) Any person, natural or juridical, who pays community tax to a city or municipality other than the city or
municipality where his residence, or principal office in the case of juridical persons, is located shall remain
liable
to
pay
such
tax
to
the
city
or
municipality
concerned.
(f)

Time

for

Payment

(1) Community tax shall accrue on the first (1st) day of January of each year and shall be paid not later than
the
last
day
of
February
of
each
year.
(2) If a person reaches the age of eighteen (18) years or otherwise loses the benefit of exemption on or before
the last day of June, he shall be liable for the payment of community tax on the day he reaches such age or
upon the day the exemption on or before the last day of March, he shall have twenty (20) days within which to
pay
the
community
tax
without
becoming
delinquent.
(3) Persons who come to reside in the Philippines or reach the age of eighteen (18) years on or after the first
(1st) day of July of any year, or who cease to belong to an exempt class on or after the same date, shall not be
subject
to
community
tax
for
that
year.
(4) Corporations established and organized on or before the last day of June shall be liable for the payment of
community tax for that year. Corporations established and organized on or before the last day of March shall
have twenty (20) days within which to pay the community tax without becoming delinquent. Corporations
established and organized on or after the first day of July shall not be subject to community tax for that year.
(g) Penalties for the payment If the tax is not paid within the prescribed period, there shall be added to the
unpaid amount an interest of twenty-four percent (24%) per annum from the due date until it is paid.
ARTICLE 247. Community Tax Certificate. A community tax certificate shall be issued to every person or
corporation upon payment of community tax. A community tax certificate may also be issued to any person or
corporation not subject to community tax upon payment of One Peso (P1.00).

ARTICLE 248. Presentation of Community Tax Certificate. (a) When an individual subject to community
tax acknowledges any document before a notary public, takes the oath of office upon election or appointment
to any position in the government service; receives any license, certificate, or permit from any public
authority; pays any tax or fee; receives any money from any public fund; transacts other official business; or
receives any money from any public fund; transacts other official business; or receives any salary or wage
from any person or corporation, it shall be the duty of any person, officer, or corporation with whom such
transaction is made or business done or from whom any salary or wage is received to require such individual
to
exhibit
the
community
tax
certificate.
The presentation of community tax certificate shall not be required for the registration of a voter.
(b) When, through its authorized officers, any corporation subject to community tax receives any license,
certificate, or permit from any public authority, pays any tax or fee, receives money from public funds, or
transacts other official business, it shall be the duty of the public official with whom such transaction is made
or business done, to require such corporation to exhibit the community tax certificate.
(c) The community tax certificate required in the two preceding paragraphs shall be the one issued for the
current year, except for the period from January until the fifteenth (15th) of April each year, in which case, the
certificate
issued
for
the
preceding
year
shall
suffice.
ARTICLE 249. Printing of Community Tax Certificates and Distribution of Proceeds. The Bureau of
Internal Revenue (BIR) shall cause the printing of community tax certificates and distribute the same to the
cities and municipalities through the city and municipal treasurers in accordance with prescribed regulations.
To facilitate distribution, the BIR may send on consignment to the provincial treasurers blank forms of the
community tax certificates and the municipal treasurers of the province shall secure through the provincial
treasurer, their respective requirements. The city or municipal treasurer concerned shall remit to the National
Treasurer, for the account of the BIR, the share of the National Government in the proceeds of the tax,
representing the cost of printing and distribution, within ten (10) days after the end of each quarter. In cases
where the certificates were secured or requisitioned from the provincial treasurer, the municipal treasurers
shall remit payments to the provincial treasurer who shall, in turn, effect the remittance to the National
Treasurer
as
required.
ARTICLE 250. Collection of Community Tax by the Barangay Treasurer. The tax ordinance levying the
community tax shall authorize the city or municipal treasurer to deputize the barangay treasurers to collect
the community tax in their respective jurisdictions. Such deputation shall be limited to the community tax
payable by individual taxpayers and shall be extended only to barangay treasurers who are properly bonded
in
accordance
with
applicable
laws.
ARTICLE 251. Allocation of Proceeds of Community Tax. The proceeds of community tax actually and
directly collected by the city or municipal treasurer shall accrue entirely to the general fund of the city or
municipality concerned. The proceeds of community tax collected through the barangay treasurers shall be
apportioned
as
follows:
(a) Fifty percent (50%) shall accrue to the general fund of the city or municipality concerned; and

(b)

Fifty

percent

(50%)

shall

accrue

to

the

barangay

where

the

tax

is

collected.

ARTICLE 252. Authority to Use Blank Forms of Residence Certificates. The city and municipal treasurer
shall be authorized to use for the year 1992 blank forms of residence certificates still in their stock, pending the
distribution by the BIR of the new form for the community tax certificate provided that:
(a) The word residence shall be cancelled and in its place, the word community shall be superimposed;
(b) The maximum amount of additional tax payable by individual and corporate taxpayers shall be changed
from P3,000.00 to P5,000.00 and from P6,000.00 to P10,000.00, respectively, in accordance with the schedule
provided
in
Article
247
of
this
Rule.
(c) Corresponding reports as to quantity and serial numbers of old blank forms used during Calendar Year
1992 shall be submitted by the city and municipal treasurers to the BIR pursuant to applicable rules and
regulations.
PART IX
Collection of Taxes
ARTICLE 253. Tax Period and Manner of Payment. Unless otherwise provided in this Rule, the tax period
of all local taxes, fees, and charges shall be the calendar year. Such taxes, fees, and charges may be paid in
quarterly
installments
as
may
be
provided
in
the
tax
ordinance.
ARTICLE 254. Accrual of Tax. Unless otherwise provided herein, local taxes, fees, and charges shall accrue
on the first (1st) day of January of each year as regards tax subjects then liable therefore, but an entirely new
tax, fee or charge, or charges in the rates of existing taxes, fees, or charges, shall accrue on the first day of the
quarter next following the effectivity of the ordinance imposing such new levies or rates.
ARTICLE 255. Time of Payment. Unless otherwise specifically provided in this Rule, all local taxes, fees,
and charges due and accruing to the LGUs shall be paid within the first twenty (20) days of January or of each
subsequent quarter, as the case may be. The sanggunian concerned may, for a justifiable reason or cause,
extend the time for payment of such taxes, fees, or charges without surcharges or penalties, but only for a
period
not
exceeding
six
(6)
months.
ARTICLE 256. Surcharges and Penalties on Unpaid Taxes, Fees, or Charges. The sanggunian may impose a
surcharge not exceeding twenty-five percent (25%) of the amount of taxes, fees, or charges not paid on time
and an interest at the rate not exceeding two percent (2%) per month of the unpaid taxes, fees, or charges
including surcharges, until such amount is fully paid but in no case shall the total interest on the unpaid
amount
or
portion
thereof
exceed
thirty-six
(36)
months.
ARTICLE 257. Interests on Other Unpaid Revenues. Where the amount of any other revenue due an LGU,
except voluntary contributions or donations, is not paid on the date fixed in the ordinance, or in the contract,
expressed or implied, or upon the occurrence of the event which has given rise to its collection, there shall be
collected as part of that amount an interest thereon at the rate not exceeding two percent (2%) per month from
the date it is due until it is paid, but in no case shall the total interest on the unpaid amount or a portion
thereof
exceed
thirty-six
(36)
months.

ARTICLE 258. Collection of Local Revenues. All local taxes, fees, and charges shall be collected by the
provincial, city, municipal, or barangay treasurer, or their duly authorized deputies.
The provincial, city, or municipal treasurer may designate the barangay treasurer as his deputy to collect local
taxes, fees, or charges. In case a bond is required for the purpose, the provincial, city, or municipal government
shall pay the premium thereon in addition to the premiums of bond that may be required under these Rules.
ARTICLE 259. Examination of Books of Accounts and Pertinent Records of Businessmen. (a) For purposes
of implementing this Article, only the treasurer of the LGU imposing the tax, fee, or charge, may examine the
books of accounts and pertinent records of businessmen in order to ascertain, assess, and collect the correct
amount
of
taxes,
fees,
and
charges.
(b) The provincial, city, municipal, or barangay treasurer may, by himself or through any of his deputies duly
authorized in writing, examine the books, accounts, and other pertinent records of any person, partnership,
corporation,
or
association
subject
to
local
taxes,
fees,
and
charges.
(c) The examination shall be made during regular business hours not oftener than once a year for every tax
period, which shall be the year immediately preceding the examination, and shall be certified by the examining
official. Such certification shall be made of record in the books of accounts of the taxpayer examined.
(d) In case the examination is made by a duly authorized deputy of the local treasurer, the written authority of
the deputy concerned shall specifically state the name, address, and business of the taxpayer whose books,
accounts, and pertinent records are to be examined, the date and place of such examination, and the procedure
to
be
followed
in
conducting
the
same.
(e) For this purpose, the records of the revenue district office of the BIR shall be made available to the local
treasurer,
his
deputy
or
duly
authorized
representative.
(f) The Secretary of Finance shall prescribe the necessary forms to be used and such guidelines which may be
deemed necessary for the proper and effective implementation of this Article.
PART X
Civil Remedies for Collection of Revenues
ARTICLE 260. Application. The provisions of Part Ten of this Rule and the remedies herein provided may
be availed of for the collection of any delinquent local tax, fee, charge, or other revenues.
ARTICLE 261. Local Government's Lien. Local taxes, fees, charges, and other revenues constitute a lien,
superior to all liens, charges, or encumbrances in favor of any person, enforceable by appropriate
administrative or judicial action, not only upon any property or rights therein which may be subject to the lien
but also upon property used in business, occupation, practice of profession or calling, or exercise of privilege
with respect to which the lien is imposed. The lien may only be extinguished upon full payment of the
delinquent local taxes, fees, and charges including related surcharges and interests.
ARTICLE 262. Civil Remedies. The civil remedies for the collection of local taxes, fees, or charges, and

related

surcharges

and

interests

resulting

from

delinquencies

shall

be:

(a) By administrative action through distraint of goods, chattels, or effects, and other personal property of
whatever character, including stocks and other securities, debts, credits, bank accounts, and interest in and
rights to personal property, and by levy upon real property and interest in or rights to real property; and
(b)

By

judicial

action.

Either of these two (2) remedies or both may be pursued concurrently or simultaneously at the discretion of
the
LGU
concerned.
ARTICLE 263. Distraint of Personal Property. The remedy by distraint shall proceed as follows:
(a) Seizure Upon failure of the person owing any local tax, fee, or charge to pay the same at the time
required, the local treasurer or his deputy may, upon written notice, seize or confiscate any personal property
belonging to that person or any personal property subject to the lien in sufficient quantity to satisfy the tax,
fee, or charge in question, together with any increment thereto incident to delinquency and the expenses of
seizure. In such case, the local treasurer or his deputy shall issue a duly authenticated certificate based upon
the records of his office showing the fact of delinquency and the amounts of the tax, fee, or charge and penalty
due. Such certificate shall serve as sufficient warrant for the distraint of personal property aforementioned,
subject to the taxpayer's right to claim exemption under the provisions of applicable laws. Distrained personal
property shall be sold at public auction in the manner provided in this Rule.
(b) Accounting of distrained goods The officer executing the distraint shall make or cause to be made an
account of the goods, chattels, or effects distrained, a copy of which signed by himself shall be left either with
the owner or person from whose possession the goods, chattels, or effects are taken, or at the dwelling or place
of business of that person and with someone of suitable age and discretion, to which list shall be added a
statement of the sum demanded and a note of the time and place of sale.
(c) Publication The officer shall forthwith cause a notification to be exhibited in not less than three (3)
public and conspicuous places in the territory of the LGU where the distraint is made, specifying the time and
place of sale, and the articles distrained. The time of sale shall not be less than twenty (20) days after notice to
the owner or possessor of the property as above specified and the publication or posting of the notice. One
place for the posting of the notice shall be at the office of the chief executive of the LGU in which the property
is
distrained.
(d) Release of distrained property upon payment prior to sale If at any time prior to the consummation of
the sale, all the proper charges are paid to the officer conducting the sale, the goods or effects distrained shall
be
restored
to
the
owner.
(e) Procedure of sale At time and place fixed in the notice, the officer conducting the sale shall sell the goods
or effects so distrained at public auction to the highest bidder for cash. Within five (5) days after the sale, the
local treasurer shall make a report of the proceedings in writing to the local chief executive concerned.
Should the property distrained be not disposed of within one hundred and twenty (120) days from the date of
distraint, the same shall be considered as sold to the LGU concerned for the amount of the assessment made

thereon by the committee on appraisal and to the extent of the same amount, the tax delinquencies shall be
cancelled.
The committee on appraisal shall be composed of the city or municipal treasurer as chairman, with a
representative
of
COA
and
the
city
or
municipal
assessor,
as
members.
(f) Disposition of proceeds The proceeds of the sale shall be applied to satisfy the tax, including the
surcharges, interests, and other penalties incident to delinquency, and the expenses of the distraint and sale.
The balance over and above what is required to pay the entire claim shall be returned to the owner of the
property sold. The expenses chargeable upon the seizure and sale shall embrace only the actual expenses of
seizure and preservation of the property pending the sale, and no charge shall be imposed for the services of
the local officer or his deputy. Where the proceeds of the sale are insufficient to satisfy the claim, other
property
may,
in
like
manner,
be
distrained
until
the
full
amount
due,
including
all
expenses,
is
collected.
ARTICLE 264. Levy on Real Property. After the expiration of the time required to pay the delinquent tax,
fee, or charge, real property may be levied on, before, simultaneously, after the distraint of personal property
belonging to the delinquent taxpayer. The provincial, city or municipal treasurer, as the case may be, shall
prepare a duly authenticated certificate showing the name of the taxpayer and the amount of the tax, fee, or
charge, and penalty due from him. Such certificate shall operate with the force of a legal execution throughout
the Philippines. Levy shall be effected by writing upon said certificate the description of the property upon
which levy is made. At the same time, written notice of the levy shall be mailed to or served upon the local
assessor and registrar of deeds of the province or city where the property is located who shall annotate the levy
on the tax declaration and certificate of title of the property, respectively, and the delinquent taxpayer or, if he
be absent from the Philippines, to his agent or the manager of the business in respect to which the liability
arose, or if
there be none, to the occupant of
the
property
in
question.
In case the levy on real property is not issued before or simultaneously with the warrant of distraint on
personal property, and the personal property of the taxpayer is not sufficient to satisfy his delinquency, the
provincial, city or municipal treasurer, as the case may be, shall within thirty (30) days after execution of the
distraint,
proceed
with
the
levy
on
the
taxpayer's
real
property.
A report on any levy shall, within ten (10) days after receipt of the warrant, be submitted by the levying officer
to
the
sanggunian
concerned.
ARTICLE 265. Penalty for failure to Issue and Execute Warrant. Without prejudice to criminal prosecution
under the Revised Penal Code and other applicable laws, any local treasurer who fails to issue or execute the
warrant of distraint or levy after the expiration of the time prescribed, or who is found guilty of abusing the
exercise thereof by competent authority, shall be automatically dismissed from the service after due notice and
hearing.
ARTICLE 266. Advertisement and Sale. Within thirty (30) days after levy, the local treasurer shall proceed
to publicly advertise for sale or auction the property or a usable portion thereof as may be necessary to satisfy
the claim and cost of sale; and such advertisement shall cover a period of at least thirty (30) days. It shall be
effected by posting a notice at the main entrance of the city or municipal hall, and in public and conspicuous
places in the barangay where the real property is located, and by publication once a week for three (3) weeks

in a newspaper of general circulation in the province, city or municipality where the property is located. The
advertisement shall contain the amount of taxes, fees or charges, and penalties due thereon, and the time and
place of sale, the name of the taxpayer against whom the taxes, fees, or charges are levied, and a short
description of the property to be sold. At any time before the date fixed for the sale, the taxpayer may stay the
proceedings by paying the taxes, fees, charges, penalties, and interests. If he fails to do so, the sale shall proceed
and shall be held either at the main entrance of the provincial capitol, city or municipal hall, or on the
property to be sold, or at any other place as determined by the local treasurer conducting the sale and specified
in
the
notice
of
sale.
Within thirty (30) days after the sale, the local treasurer or his deputy shall make a report of the sale to the
sanggunian concerned, and which shall form part of his records. After consultation with the sanggunian, the
local treasurer shall make and deliver to the purchaser a certificate of sale, showing the proceedings of the sale,
describing the property sold, stating the name of the purchaser and setting out the exact amount of all taxes,
fees, charges, and related surcharges, interests, or penalties provided that any excess in the proceeds of the sale
over the claim and cost of sales shall be turned over to the owner of the property. The local treasurer may, by a
duly approved ordinance, advance an amount sufficient to defray the costs of collection by means of the
remedies provided, in this Rule, including the preservation or transportation, in case of personal property, and
the advertisement and subsequent sale, in cases of personal and real property including improvements
thereon.
ARTICLE 267. Redemption of Property Sold. Within one (1) year from the date of sale, the delinquent
taxpayer or his representative shall have the right to redeem the property upon payment to the local treasurer
of the total amount of taxes, fees, or charges, and related surcharges, interest, or penalties from the date of
delinquency to the date of sale, plus interest of not more than two percent (2%) per month on the purchase
price from the date of purchase to the date of redemption. Such payment shall invalidate the certificate of sale
issued to the purchaser and the owner shall be entitled to a certificate of redemption from the provincial, city,
or
municipal
treasurer
or
his
deputy.
The provincial, city, or municipal treasurer or his deputy, upon surrender by the purchaser of the certificate of
sale previously issued to him, shall forthwith return to the latter the entire purchase price paid by him plus the
interest of not more than two percent (2%) per month herein provided for, the portion of the cost of sale and
other legitimate expenses incurred by him, and said property thereafter shall be free from the lien of such
taxes,
fees,
or
charges,
related
surcharges,
interests,
and
penalties.
The owner shall not be deprived of the possession of said property and shall be entitled to the rentals and other
income thereof until the expiration of the time allowed for its redemption .
ARTICLE 268. Final Deed of Conveyance to Purchaser. In case the taxpayer fails to redeem the property as
provided herein, the local treasurer shall execute a deed conveying to the purchaser so much of the property as
has been sold, free from liens of any taxes, fees, charges, related surcharges, interests, and penalties. The deed
shall succinctly recite all the proceedings upon which the validity of the sale depends.
ARTICLE 269. Purchase of Property by the Local Government Units for Want of Bidder. In case there is no
bidder for the real property advertised for sale as provided herein, or if the highest bid is for an amount
insufficient to pay the taxes, fees, or charges, related surcharges, interests, penalties, and costs, the local
treasurer conducting the sale shall purchase the property in behalf of the LGU concerned to satisfy the claim

and within two (2) days thereafter shall make a report of his proceedings which shall be reflected upon the
records of his office. It shall be the duty of the registrar of deeds concerned upon registration with his office of
any such declaration of forfeiture to transfer the title of the forfeited property to the LGU concerned without
the
necessity
of
an
order
from
a
competent
court.
Within one (1) year from the date of such forfeiture the taxpayer or any of his representative, may redeem the
property by paying to the local treasurer the full amount of the taxes, fees, charges, and related surcharges,
interests, or penalties, and the costs of sale. If the property is not redeemed as provided herein, the ownership
thereof
shall
be
fully
vested
on
the
LGU
concerned.
ARTICLE 270. Resale of Real Estate Acquired for Payment of Taxes, Fees, or Charges. The sanggunian
concerned may, by a duly approved ordinance, and upon notice of not less than twenty (20) days, sell and
dispose of the real property acquired under the preceding Article at public auction. The proceeds of the sale
shall
accrue
to
the
general
fund
of
the
LGU
concerned.
ARTICLE 271. Collection of Delinquent Taxes, Fees, Charges, or Other Impositions through Judicial Action.
The LGU concerned may enforce the collection of delinquent taxes, fees, charges, or other impositions by
civil action in any court of competent jurisdiction. The civil action shall be filed by the local treasurer within
the
period
prescribed
in
Article
285
of
this
Rule.
ARTICLE 272. Further Distraint or Levy. The remedies by distraint and levy may be repeated if necessary
until
the
full
amount
due,
including
all
expenses,
is
collected.
ARTICLE 273. Personal Property Exempt from Distraint or Levy. The following property shall be exempt
from distraint and the levy, attachment or execution thereof for delinquency in the payment of any local tax,
fee,
or
charge,
including
related
surcharges
and
interests:
(a) Tools and implements necessarily used by the delinquent taxpayer in his trade or employment:
(b) One (1) horse, cow, carabao, or other beast of burden, such as the delinquent taxpayer may select, and
necessarily
used
by
him
in
his
ordinary
occupation;
(c)

His

necessary

clothing,

and

that

of

all

his

family;

(d) Household furniture and utensils necessary for housekeeping and used for that purpose by the delinquent
taxpayer, such as he may select, of a value not exceeding Ten Thousand Pesos (P10,000.00);
(e) Provisions, including crops, actually provided for individual or family use sufficient for four (4) months;
(f)

The

professional

libraries

of

doctors,

engineers,

lawyers

and

judges;

(g) One (1) fishing boat and net, not exceeding the total value of Ten Thousand Pesos (P10,000.00), by the
lawful
use
of
which
a
fisherman
earns
his
livelihood;
and
(h) Any material or article forming part of a house or improvement of any real property.

PART XI
Miscellaneous Provisions
ARTICLE 274. Power to Levy Other Taxes, Fees, or Charges. LGUs may exercise the power to levy taxes,
fees, or charges on any base or subject not otherwise specifically enumerated in this Rule or taxed under the
provisions of the NIRC, as amended, or other applicable laws provided that the taxes, fees, or charges shall not
be unjust, excessive, oppressive, confiscatory, or contrary to declared national policy provided further that the
ordinance levying such taxes, fees, or charges shall not be enacted without prior public hearing conducted for
the
purpose.
ARTICLE 275. Procedure for Approval and Effectivity of Tax Ordinances and Revenue Measures. The
procedure for approval of local tax ordinances and revenue measures shall be in accordance with the
provisions of this Rule provided that public hearings shall be conducted for the purpose prior to the enactment
thereof provided further that any question on the constitutionality or legality of tax ordinances or revenue
measures may be raised on appeal within thirty (30) days from the effectivity thereof to the Secretary of
Justice who shall render a decision within sixty (60) days from the date of receipt of the appeal provided
furthermore that such appeal shall not have the effect of suspending the effectivity of the ordinance and the
accrual and payment of the tax, fee, or charge levied therein and provided finally that within thirty (30) days
after receipt of the decision or the lapse of the sixty-day period without the Secretary of Justice acting upon the
appeal, the aggrieved party may file appropriate proceedings with a court of competent jurisdiction.
All tax ordinances or revenue measures shall be numbered consecutively throughout the calendar year and
continuously from year to year, using the last two (2) digits of the calendar year in which it is enacted, followed
by denominated number. For example, an ordinance is passed in January, 1992, and it is the first ordinance for
that year. The ordinance shall be denominated and numbered as Tax Ordinance No. 92-001. The next shall be
Tax
Ordinance
No.
92-002,
Tax
Ordinance
No.
92-003,
and
so
forth.
ARTICLE 276. Publication of Tax Ordinances and Revenue Measures. (a) Within ten (10) days after their
approval, certified true copies of all provincial, city, and municipal tax ordinances or revenue measures shall
be published in full for three (3) consecutive days in a newspaper of local circulation provided that in
provinces, cities, and municipalities where there are no newspapers of local circulation, the same may be
posted
in
at
least
two
(2)
conspicuous
and
publicly
accessible
places.
If the tax ordinance or revenue measure contains penal provisions as authorized in Article 280 of this Rule, the
gist of such tax ordinance or revenue measure shall be published in a newspaper of general circulation within
the province where the sanggunian concerned belongs. In the absence of any newspaper of general circulation
within the province, posting of such ordinance or measure shall be made in accessible and conspicuous public
places in all municipalities and cities of the province to which the sanggunian enacting the ordinance or
revenue
measure
belongs.
In case the effectivity of any tax ordinance or revenue measure falls on any date other than the beginning of
the quarter, the same shall be considered as falling at the beginning of the next ensuing quarter and the taxes,
fees,
or
charges
due
shall
begin
to
accrue
therefrom.
(b)

The

conduct

of

public

hearings

shall

be

governed

by

the

following

procedure:

(1) Within ten (10) days from filing of any proposed tax ordinance or revenue measure, the same shall first be
published for three (3) consecutive days in a newspaper of local circulation or shall be posted simultaneously in
at least four (4) conspicuous public places within the territorial jurisdiction of the LGU concerned.
(2) In addition to the requirement for publication or posting, the sanggunian concerned shall cause the sending
of written notices of the proposed ordinance, enclosing a copy thereof, to the interested or affected parties
operating or doing business within the territorial jurisdiction of the LGU concerned.
(3) The notice or notices shall specify the date or dates and venue of the public hearing or hearing. The initial
public hearing shall be held not earlier than ten (10) days from the sending out of notice or notices, or the last
day
of
publication,
or
date
of
posting
thereof,
whichever
is
later.
(4) At the public hearing or hearings, all affected or interested parties shall be accorded an opportunity to
appear and present or express their views, comments and recommendations, and such public hearing or
hearings shall continue until all issues have been presented and fully deliberated upon and/or consensus is
obtained, whether for or against the enactment of the proposed tax ordinance or revenue measure.
(5) The secretary of the sanggunian concerned shall prepare the minutes of such public hearing and shall
attach to the minutes the position papers, memoranda, and other documents submitted by those who
participated.
(c) No tax ordinance or revenue measure shall be enacted or approved in the absence of a public hearing duly
conducted
in
the
manner
provided
in
this
Article.
ARTICLE 277. Furnishing of Copies of Tax Ordinance and Revenue Measures. Copies of all provincial,
city, municipal, and barangay tax ordinances and revenue measures shall be furnished the respective local
treasurers
concerned
for
public
dissemination.
ARTICLE 278. Existing Tax Ordinances or Revenue Measures. (a) All existing tax ordinances or revenue
measures of provinces, cities, municipalities, and barangays imposing taxes, fees, or charges shall continue to
be in force and effect after the effectivity of the Code, except those imposing levies on tax bases or tax subjects
which are no longer within the taxing and revenue-raising powers of the LGU concerned and where the rates
levied in the tax ordinance are higher than the taxes, fees, or charges prescribed in this Rule in which case, the
lower
rates
shall
be
collected.
(b) In case of failure of the sanggunian to amend or revoke tax ordinances or revenue measures inconsistent
with, or in violation of the provisions of this Rule, the same shall be deemed rescinded upon the effectivity of
the
Code
and
these
Rules.
ARTICLE 279. Penalties for Violation of Tax Ordinances. The sanggunian of an LGU is authorized to
prescribe imprisonment of fines or other penalties for violation of tax ordinances but in no case shall such
imprisonment be less than one (1) month nor more than six (6) months or such fine be less than One Thousand
Pesos (P1,000.00) nor more than Five Thousand Pesos (P5,000.00), or both such imprisonment or fine, at the
discretion of the court. The sanggunian barangay may prescribe a fine of not less than One Hundred Pesos
(P100.00)
nor
more
than
One
Thousand
Pesos
(P1,000.00).

ARTICLE 280. Attempt to Enforce Void or Suspended Tax Ordinances and Revenue Measures.
Enforcement of any tax ordinance or revenue measure after due notice of the disapproval or suspension
thereof shall be a sufficient ground for administrative disciplinary action against the local officials and
employees responsible therefore. Any attempt to enforce any tax ordinance or revenue measure deemed
rescinded by operation of law, or the effectivity of which has been suspended, or the passage of which has been
declared illegal, shall subject the local officials and employees responsible therefore to administrative
disciplinary
action.
ARTICLE 281. Authority to Adjust Rates of Taxes. LGUs shall be authorized to adjust the tax rates
prescribed in this Rule not oftener than once every five (5) years, but in no case shall such adjustments exceed
ten
percent
(10%)
of
the
rates
fixed
in
this
Rules.
ARTICLE 282. Authority to Grant Tax Exemption Privileges or Incentives. (a) While sanggunians may
grant tax exemption, tax incentive, or tax relief, such grant shall not apply to regulatory fees which are levied
under the police power of LGUs. Tax exemptions shall be conferred through the issuance of a tax exemption
certificate,
which
shall
be
non-transferable.
(b) The sanggunians granting tax exemptions, tax incentives and tax reliefs may be guided by the following:
(1)

On

the

grant

of

tax

exemptions

or

tax

reliefs:

(i) Tax exemption or tax relief may be granted in cases of natural calamities, civil disturbance, general failure
of crops, or adverse economic conditions such as substantial decrease in the prices of agricultural or agri-based
products;
(ii)

The

grant

of

exemption

or

relief

shall

be

through

an

ordinance.

(iii) Any exemption or relief granted to a type or kind of business shall apply to all business similarly situated;
and
(iv) Any exemption or relief granted shall take effect only during the next calendar year for a period not
exceeding twelve (12) months as may be provided in the ordinance. In the case of shared revenues, the
exemption or relief shall only extend to the LGU granting such exemption or relief.
(2)

On

the

grant

of

tax

incentives:

(i) The tax incentive shall be granted only to new investments in the locality and the ordinance shall prescribe
the
terms
and
conditions
therefore;
(ii) The grant of the tax incentive shall be for a definite period not exceeding one (1) calendar year;
(iii) The grant of tax incentives shall be by ordinance passed prior to the first (1st) day of January of any year;
and
(iv) Any tax incentive granted to a type or kind of business shall apply to all businesses similarly situated.

ARTICLE 283. Withdrawal of Tax Exemption Privileges or Incentives. Unless otherwise provided in this
Rule, beginning January 1, 1992, all local tax exemption privileges or incentives granted to and presently
enjoyed by any person, whether natural or juridical, including GOCCs, are considered withdrawn, except the
following:
(a)

Local

water

districts;

(b) Cooperatives duly registered under RA 6938, otherwise known as the Cooperative Code of the Philippines;
(c)

Non-stock

and

non-profit

hospitals

and

educational

institutions;

(d) Business enterprises certified by the Board of Investments (BOI) as pioneer or non-pioneer for a period of
six
(6)
and
four
(4)
years,
respectively,
from
the
date
of
registration;
(e)

Business

entity,

association,

or

cooperatives

registered

under

RA

6810;

and

(f) Printer and/or publisher of books or other reading materials prescribed by DECS as school texts or
references, insofar as receipts from the printing and/or publishing thereof are concerned.
Unless otherwise repealed by law, business and economic enterprises operating within export processing zones
administered by the Export Processing Zone Authority shall continue to enjoy the tax exemption privileges
and tax incentives granted in PD 66, as amended.
PART XII
Taxpayer's Remedies
ARTICLE 284. Period of Assessment and Collection. (a) Local taxes, fees, or charges shall be assessed
within five (5) years from the date they become due. No action for the collection of such taxes, fees, or charges,
whether administrative or judicial, shall be instituted after the expiration of such period provided that taxes,
fees or charges which have accrued before the effectivity of the Code may be assessed within a period of three
(3)
years
from
the
date
they
became
due.
(b) In case of fraud or intent to evade the payment of taxes, fees, or charges, the same may be assessed within
ten
(10)
years
from
discovery
of
the
fraud
or
intent
to
evade
payment.
(c) Local taxes, fees, or charges may be collected within five (5) years from the date of assessment by
administrative or judicial action. No such action shall be instituted after the expiration of said period provided
that taxes, fees, or charges assessed before the effectivity of the Code may be collected within a period of three
(3)
years
from
the
date
of
assessment.
(d) The running of the periods of prescription provided in the preceding paragraphs shall be suspended for the
time
during
which:
(1)

The

treasurer

is

legally

prevented

from

making

the

assessment

of

collection;

(2) The taxpayer requests re-investigation and executes a waiver in writing before expiration of the period

within
(3)

which
The

taxpayer

to
is

out

assess
of

the

country

or
or

collect;
otherwise

cannot

and
be

located.

ARTICLE 285. Protest on Assessment. When the local treasurer or his duly authorized representative finds
that correct taxes, fees, or charges have not been paid, he shall issue a notice of assessment stating the nature of
the tax, fee, or charge the amount of deficiency, the surcharges, interests, and penalties. Within sixty (60) days
from receipt of the notice of assessment, the taxpayer may file a written protest with the local treasurer
contesting the assessment; otherwise, the assessment shall become final and executory. The local treasurer
shall decide the protest within sixty (60) days from the time of its filing. If the local treasurer finds the protest
to be wholly or partly meritorious, he shall issue a notice cancelling wholly or partially the assessment. If the
local treasurer finds the assessment to be wholly or partly correct, he shall deny the protest wholly or partly
with
notice
to
the
taxpayer.
The taxpayer shall have thirty (30) days from receipt of the denial of the protest or from the lapse of the sixtyday period prescribed in this Article within which to appeal with the court of competent jurisdiction;
otherwise,
the
assessment
becomes
conclusive
and
unappealable.
ARTICLE 286. Claim for Refund or Tax Credit. All taxpayers entitled to a refund or tax credit provided in
this Rule shall file with the local treasurer a claim in writing duly supported by evidence of payment (e.g.,
official receipts, tax clearance, and such other proof evidencing overpayment within two (2) years from
payment of the tax, fee, or charge. No case or proceeding shall be entertained in any court without this claim in
writing, and after the expiration of two (2) years from the date of payment of such tax, fee, or charge, or from
the
date
the
taxpayer
is
entitled
to
a
refund
or
tax
credit.
The tax credit granted a taxpayer shall not be refundable in cash but shall only be applied to future tax
obligations of the same taxpayer for the same business. If a taxpayer has paid in full the tax due for the entire
year and he shall have no other tax obligation payable to the LGU concerned during the year, his tax credits, if
any, shall be applied in full during the first quarter of the next calendar year on the tax due from him for the
same
business
of
said
calendar
year.
Any unapplied balance of the tax credit shall be refunded in cash in the event that he terminates operation of
the
business
involved
within
the
locality.
ARTICLE 287. Authority of the Secretary of Finance. The Secretary of Finance shall, in consultation with
the leagues of LGUs formulate and prescribe, from time to time, procedures and guidelines as may be
necessary for the proper, efficient, and effective implementation of this Rule.
RULE XXXI
Real Property Taxation
ARTICLE 288. Scope. This Rule shall cover the administration, appraisal, assessment, levy, and collection
of
real
property
tax.
ARTICLE 289. Fundamental Principles. The appraisal, assessment, levy, and collection of real property tax
shall
be
governed
by
the
following
fundamental
principles:

(a)

Real

property

shall

be

appraised

at

its

current

and

fair

market

value;

(b) Real property shall be classified for assessment purposes on the basis of its actual use;
(c) Real property shall be assessed on the basis of a uniform classification within each LGU;
(d) The appraisal, assessment, levy, and collection of real property tax shall not be let to any private person;
and
(e)

The

ARTICLE

appraisal
290.

and

assessment
Definition

of

real
of

property

shall
Terms.

be

equitable.

(a) Acquisition Cost for newly-acquired machinery not yet depreciated and appraised within the year of its
purchase, refers to the actual cost of the machinery to its present owner plus the cost of transportation,
handling,
and
installation
at
the
present
site;
(b) Actual Use refers to the purpose for which the property is principally or predominantly utilized by the
person
in
possession
thereof;
(c) Ad Valorem Tax is a levy on real property determined on the basis of a fixed proportion of the value of the
property;
(d) Agricultural Land is land devoted principally to the planting of trees, raising of crops, livestock and
poultry, dairying, salt making, inland fishing and similar aquacultural activities and is not classified as
mineral,
timber,
residential,
commercial
or
industrial
land;
(e) Appraisal is the act or process of determining the value of property as of a specific date for a specific
purpose;
(f) Assessment is the act or process of determining the value of a property, or proportion thereof subject to tax,
including
the
discovery,
listing,
classification,
and
appraisal
of
properties;
(g) Assessment Level is the percentage applied to the fair market value to determine the taxable value of the
property;
(h) Assessed Value is the fair market value of the real property multiplied by the assessment level. It is
synonymous
to
taxable
value;
(i) Commercial Land is land devoted principally for the object of profit and is not classified as agricultural,
industrial,
mineral,
timber,
or
residential
land;
(j) Depreciated Value is the value remaining after deducting depreciation from the acquisition cost;
(k) Economic Life is the estimated period over which it is anticipated that a machinery or equipment may be

profitably

utilized;

(l) Fair Market Value is the price at which a property may be sold by a seller who is not compelled to sell and
bought
by
a
buyer
who
is
not
compelled
to
buy;
(m) Improvement is a valuable addition made to a property or an amelioration in its condition, which is
intended to enhance its value, beauty or utility or to adapt it for new or further purposes, amounting to more
than a mere repair or replacement of parts involving capital expenditures and labor and normally requiring a
building
permit;
(n) Industrial Land is land devoted principally to industrial activity as capital investment and is not classified
as
agricultural,
commercial,
timber,
mineral,
or
residential
land;
(o) Machinery embraces machines, equipment, mechanical contrivances, instruments, appliances or
apparatus, which may or may not be attached, permanently or temporarily to the real property.
Physical facilities for production, installations and appurtenant service facilities, those which are mobile, selfpowered, or self-propelled and those not permanently attached to the real property shall be classified as real
property provided that:
(1) They are actually, directly, and exclusively used to meet the needs of the particular industry, business, or
activity;
and
(2) By their very nature and purpose are designed for, or necessary to manufacturing, mining, logging,
commercial, industrial, or agricultural purposes.
Machinery which are of general purpose use including but not limited to office equipment, typewriters,
telephone equipment, breakable or easily damaged containers (glass or cartons), microcomputers, facsimile
machines, telex machines, cash dispensers, furniture and fixtures, freezers, refrigerators, display cases or
racks, fruit juice or beverage automatic dispensing machines which are not directly and exclusively used to
meet the needs of a particular industry, business or activity shall not be considered within the definition of
machinery
under
this
Rule.
Residential machinery shall include machines, equipment, appliances or apparatus permanently attached to
residential
land
and
improvements
or
those
immovable
by
destination.
(p) Mineral Lands are lands in which minerals, metallic or non-metallic, exist in sufficient quantity or grade to
justify
the
necessary
expenditures
to
extract
and
utilize
such
materials;
(q) Reassessment is the assigning of new assessed values to property, particularly real estate, as the result of a
general,
partial,
or
individual
reappraisal
of
the
property;
(r) Remaining Economic Life is the period of time expressed in years from the date of appraisal to the date
when
the
machinery
becomes
valueless;
(s) Remaining Value is the value corresponding to the remaining useful life of the machinery;

(t) Replacement or Reproduction Cost is the cost that would be incurred on the basis of current prices, in
acquiring an equally desirable property, on the basis of current prices with the same or closely similar
materials;
and
(u)

Residential

Land

is

land

principally

devoted

to

habitation.

ARTICLE 291. Administration of Real Property Tax. Provinces and cities, including municipalities within
MMA, shall be primarily responsible for the proper, efficient and effective administration of the real property
tax, subject to the rules and regulations governing the classification, appraisal and assessment of real property
issued
by
DOF.
The DOF and the province shall exercise the authority to review and examine on a continuing basis property,
assessment, and real property tax records to ensure the proper implementation of this Rule and determine
compliance
with
applicable
laws,
rules
and
regulations.
ARTICLE 292. Appraisal of Real Property. Within sixty (60) days from the effectivity of these Rules, DOF
shall promulgate rules and regulations and such procedural guidelines as may be necessary for the proper
classification, appraisal, and assessment of real property in accordance with the provisions of this Rule.
ARTICLE 293. Declaration of Real Property by the Owner or Administrator.
(a) All persons, natural or judicial, or their duly authorized representatives, owning or administering real
property, including improvements thereon, within a city or a municipality, shall prepare or cause to be
prepared, and file with the provincial, city, or municipal assessor, a sworn statement declaring the true value of
their property or properties, whether previously declared or undeclared, taxable or exempt, which shall be the
current and fair market value of the property as determined by the declarant.
(b) Such declaration shall contain a description of the property sufficient in detail to enable the local assessor
or
his
deputy
to
identify
the
same
for
assessment
purposes.
(c) All property owners or administrators or their duly authorized representatives shall file the sworn
declaration of real property values once every three (3) years during the period from January 1 to June 30 of
the
year
commencing
with
Calendar
Year
1992.
(d) The DOF shall prescribe a standard form to be known as Sworn Declaration of Property Values for the use
of all local assessors' offices, as well as the procedures to be observed in the filing and safekeeping thereof.
The sangguniang panlungsod and sangguniang bayan may enact their respective ordinances providing for the
imposition of penalties or pecuniary fines on property owners or administrators who fail to comply with this
Article.
ARTICLE 294. Duty of Persons Acquiring Real Property or Making Improvement Thereon. (a) All persons,
natural or juridical, or their duly authorized representatives, who acquire at any time a parcel or parcels of
land in any city or municipality, shall file with the provincial, city, or municipal assessor of the locality where
the property is located, a sworn statement declaring the true value of subject property within sixty (60) days

after the acquisition of such property as evidenced by a duly notarized or final deed of conveyance executed
between the contracting parties bearing proof of registration from the registrar of deeds concerned. The sixtyday period shall commence on the date of execution of the deed of conveyance.
(b) In the case of houses, buildings, or other improvements acquired or newly constructed which will require
building permits, property owners or their authorized representatives shall likewise file a sworn declaration of
the true value of the subject house, building, or other improvement within sixty (60) days after:
(1) The date of a duly notarized final deed of sale, contract, or other deed of conveyance covering the subject
property
executed
between
the
contracting
parties;
(2) The date of completion or occupancy of the newly constructed building, house, or improvement whichever
comes
earlier;
and
(3) The date of completion or occupancy of any expansion, renovation, or additional structures or
improvements made upon any existing building, house, or other real property, whichever comes earlier.
(c) In the case of machinery, the sixty-day period for filing the required sworn declaration of property values
shall commence on the date of installation thereof as determined by the city or municipal assessor and, for this
purpose, said local assessor may secure certification of the building official or engineer or other appropriate
official
stationed
in
the
province,
city,
or
municipality
concerned.
(d) The sangguniang panlalawigan, sangguniang panlungsod, and sangguniang bayan shall enact their
respective local ordinances providing for the imposition of penalties or pecuniary fines on property owners or
administrators
who
fail
to
comply
with
this
Article.
ARTICLE 295. Declaration of Real Property by the Local Assessor. (a) The local assessor shall declare only
real
property
previously
undeclared
from
taxation
purposes.
(b) In the case of real property discovered whose owner or owners are unknown, the provincial, city, or
municipal assessor shall likewise declare the same in the name of the Unknown Owner, copy furnished the
provincial assessor in the case of declarations made by a component city or municipal assessor, until such time
that a person, natural or juridical, comes forth and files the sworn declaration of property values required
under
either
Article
294
or
295
of
this
Rule,
as
the
case
may
be.
(c) No oath shall be required of any declaration made by the provincial, city, or municipal assessor.
ARTICLE

296.

Listing

of

Real

Property

in

the

Assessment

Rolls.

(a) In every province and city, including the municipalities within MMA, there shall be prepared and
maintained by the provincial, city, or municipal assessor an assessment roll wherein all real property, whether
taxable or exempt, located within the territorial jurisdiction of the LGU concerned shall be listed. Real
property shall be listed, valued, and assessed in the name of the owner or administrator, or anyone having legal
interest
in
the
property.
(b) The undivided real property of a deceased person may be listed, valued, and assessed in the name of the

estate or of the heirs and devisees without designating them individually; and undivided real property other
than that owned by a deceased may be listed, valued, and assessed in the name of one or more co-owners
provided, however, that such heir, devisee, or co-owner shall be liable severally and proportionately for all
obligations imposed by this Rule and the payment of the real property tax with respect to the undivided
property.
(c) The real property of a corporation, partnership, or association shall be listed, valued, and assessed in the
same
manner
as
that
of
an
individual.
(d) Real property owned by the Republic of the Philippines, its instrumentalities and political subdivisions, the
beneficial use of which has been granted, for consideration or otherwise, to a taxable person, shall be listed,
valued, and assessed in the name of the possessor, grantee, or of the public entity if such property has been
acquired
or
held
for
resale
or
lease.
ARTICLE 297. Proof of Exemption of Real Property from Taxation. Every person by or for whom real
property is declared, who shall claim tax exemption for such property under this Rule shall file with the
provincial, city, or municipal assessor within thirty (30) days from the date of the declaration of real property
sufficient documentary evidence in support of such claim including corporate charters, title of ownership,
articles of incorporation, by laws, contracts, affidavits, certifications and mortgage deeds, and similar
documents.
If the required evidence is not submitted within the period herein prescribed, the property shall be listed as
taxable in the assessment roll. If the property shall be proven to be tax exempt, the same shall be dropped from
the
assessment
roll.
ARTICLE 298. Real Property Identification System. All declarations of real property made under the
provisions of this Rule shall be kept and filed under a uniform classification system to be established by the
provincial, city, or municipal assessor pursuant to such guidelines as may be issued by DOF for the purpose.
ARTICLE 299. Notification of Transfer of Real Property Ownership. (a) Any person, natural or juridical,
who transfers real property ownership to another shall accordingly notify the provincial, city, or municipal
assessor concerned within sixty (60) days from the date of such transfer, which shall be determined on the basis
of
documents
required
in
Article
294
and
295
of
this
Rule.
(b) The notice of transfer shall include the mode of conveyance, description of property alienated, and the
name
and
address
of
the
transferee.
(c) In addition to the notice of transfer, the previous property owner shall likewise surrender to the provincial,
city or municipal assessor concerned, the tax declaration covering the subject property in order that the same
may be cancelled from the assessment records of the LGU. If, however, said previous owner still owns property
other than the property alienated, he shall, within the prescribed sixty-day period, file with the provincial, city,
or municipal assessor concerned, as amended sworn declaration of the true value of the property or properties
he retains in accordance with the provisions of Article 294 or 295 of this Rule.
ARTICLE 300. Duty of Registrar of Deeds to Apprise Local Assessor of Real Property Listed in Registry.
(a) Within six (6) months from the date of effectivity of the Code, and on or before June 30th of every year

thereafter, the registrar of deeds shall prepare and submit to the provincial, city, or municipal assessor
concerned the abstract of his Registry of Property which include a brief but sufficient description of the real
property entered therein, their present owners, and the date of their most recent transfer or alienation
accompanied by copies of corresponding deeds of sale, donation, or partition or other forms of alienation.
(b) Before any document of transfer, alienation, or encumbrance of real property may be registered, the
registrar of deeds shall require the presentation of a certificate or clearance issued by the local treasurer
concerned to the effect that all current year and past year basic and additional special education fund, real
property taxes, and the tax on transfer of real property ownership in Rule XXX of these Rules, due on the
subject property, have been paid in full including interests or penalties due thereon.
Failure to provide such certificate shall be a valid cause for the registrar of deeds to refuse the registration of
the document. In the absence of such certification or tax clearance, the registration is null and void.
(c) The registrar of deeds and notaries public shall furnish the provincial, city, or municipal assessor with
copies of all contracts, selling, transferring, or otherwise conveying, leasing, or mortgaging real property
registered by, or acknowledged before them, within thirty (30) days from the date of registration or
acknowledgment.
ARTICLE 301. Duty of Official Issuing Building Permit or Certificate of Registration of Machinery to
Transmit Copy to Local Assessor. (a) Any person entrusted by law with the issuance of permits for the
construction, renovation, addition, repair, or any other permanent improvement on land, or those who are
authorized to issue certificates of registration or installation of any machinery, including mechanical
contrivances and apparatus attached to or affixed on land or any other real property, shall transmit within
thirty (30) days from the date of issuance a copy of such permits or certificates to the assessor of the province,
city, or municipality where the building or machinery is situated. Where it is found to be more convenient or
efficient, said official may, in lieu of individual copies of the said permits or certificates, furnish the local
assessor concerned with monthly summaries of issued permits or certificates within the first ten (10) days of
the
succeeding
month.
(b) Any official referred to in paragraph (a) hereof shall likewise furnish the local assessor concerned with
copies of the building floor plans and/or certificates of registration or installation of other machineries which
may not be permanently or temporarily attached to land or another real property but falling under the
definition of the term machinery under Article 291 of this Rule and the rules and guidelines issued by DOF.
ARTICLE 302. Duty of Geodetic Engineer to Furnish Copy of Plans to Local Assessor. All persons
authorized by law to conduct land surveys and to certify as to the validity of such survey, whether public or
private, shall furnish free of charge the assessor of the province, city, or municipality where the property is
located with a white or blue print copy of all approved original or subdivision plans or maps of surveys they
have conducted within thirty (30) days from receipt of such approved plans from LMB, National Land Titles
and Deed Registration Administration, or Housing and Land Use Regulatory Board, as the case may be.
ARTICLE 303. Preparation of Schedule of Fair Market Values. (a) Before any general revision of property
assessment is made pursuant to the provisions of this Rule, there shall be prepared a schedule of fair market
values by the provincial and city assessors, and the municipal assessors of the municipalities within MMA for
the different classes of real property situated in their respective LGUs for enactment by ordinance of the

sanggunian concerned. The schedule of fair market values shall be published in a newspaper of general
circulation in the province, city, or municipality concerned, or in the absence thereof, shall be posted in the
provincial capitol, city or municipal hall and in two (2) other conspicuous public places therein.
(b) In the preparation of schedules of fair market values, the provincial and city assessors and the municipal
assessors of the municipalities within MMA shall be guided by the rules and regulations issued by DOF.
ARTICLE 304. Authority of Local Assessors to Take Evidence. For the purpose of obtaining information on
which to base the market value of any real property, the assessor of the province, city, or municipality or his
deputy may summon the owners of the properties to be affected or persons having legal interest therein and
witnesses, administer oaths, and take deposition concerning the property, its ownership, amount, nature, and
value.
ARTICLE 305. Amendment of Schedule of Fair Market Values. (a) The provincial, city or municipal
assessor may recommend to the sanggunian concerned amendments to correct errors in valuation in the
schedule of fair market values. The sanggunian concerned shall, by ordinance, act upon the recommendation
within
ninety
(90)
days
from
receipt
thereof.
(b) The provincial, city, or municipal assessor may recommend to the sanggunian concerned amendments to
the prevailing schedule of fair market values of the locality to correct errors arising from, or involving,
omissions in the subject schedule of any kind or type of real property, or any city, district or barangay, or any
road
or
street
and/or
the
classification
or
sub-classification
of
real
property.
ARTICLE 306. Classes of Real Property for Assessment Purposes. Real property shall be classified as
residential, agricultural, commercial, industrial, mineral, timberland, or special by the provincial and city
assessors, including the municipal assessors of MMA. The cities and municipalities within MMA shall, through
their respective sanggunians, exercise the power to classify lands as such in accordance with their zoning
ordinances provided that for purposes of assessment, real property shall be classified on the basis of actual use
regardless
of
where
located
as
provided
in
Article
309
of
this
Rule.
ARTICLE 307. Special Classes of Real Property. All lands, buildings, and other improvements thereon
actually, directly and exclusively used for hospitals, cultural, or scientific purposes, and those owned and used
by local water districts, and GOCCs rendering essential public services in the supply and distribution of water
and generation and transmission of electric power shall be classified as special.
ARTICLE 308. Actual Use of Real Property as Basis for Assessment. Real property shall be classified,
valued, and assessed on the basis of its actual use regardless of where located, whoever owns it, and whoever
uses
it.
ARTICLE 309. Assessment Levels. (a) The assessment levels to be applied to the fair market value of real
property to determine its assessed value shall be fixed by ordinances of the sangguniang panlalawigan,
sangguniang panlungsod, or sangguniang bayan of a municipality within MMA, at the rates not exceeding the
following:
(1)

On

Lands:

Class

Assessment

Level

Residential
Agricultural
Commercial
Industrial
Mineral
Timberland
(2)

20%
40%
50%
50%
50%
20%
On

Buildings

Residential
Fair
Over
P175,000.00
P175,000.00
300,000.00
500,000.00
750,000.00
1,000,000.00
2,000,000.00
5,000,000.00

and

Market
Not

Over

Structures:

Value
Assessment

Level

0%
300,000.00
500,000.00
750,000.00
1,000,000.00
2,000,000.00
5,000,000.00
10,000,000.00
10,000,000.00

Agricultural
Fair
Over
P300,000.00
P300,000.00
500,000.00
750,000.00
1,000,000.00
2,000,000.00
Commercial
Fair
Over
P300,000.00
P300,000.00
500,000.00
750,000.00
1,000,000.00
2,000,000.00
5,000,000.00
10,000,000.00

Other

60%

Market
Not

10%
20%
25%
30%
35%
40%
50%

Over

Value
Assessment

Level
25%
30%
35%
40%
45%

500,000.00
750,000.00
1,000,000.00
2,000,000.00
50%

Not

or
Market
Over

Industrial
Value
Assessment
30%
500,000.00
750,000.00
1,000,000.00
2,000,000.00
5,000,000.00
10,000,000.00

Level
35%
40%
50%
60%
70%
75%
80%

Timberland
Fair
Over
P300,000.00
P300,000.00
500,000.00
750,000.00
1,000,000.00
2,000,000.00

Market
Over

Not

(3)

Value
Assessment
45%
500,000.00
750,000.00
1,000,000.00
2,000,000.00
70%

On

Class
Agricultural
Residential
Commercial
Industrial

Level
50%
55%
60%
65%

Machineries

Assessment

Level
40%
50%
80%
80%

(4) On Special Classes: Assessment level for all lands, buildings, machineries and other improvements;
Actual
Cultural
Scientific
Hospital
Local
GOCCs
and
or
of

Use

Water
engaged
distribution
generation
electric

Assessment
15%
15%
15%
District
in
of

Level

10%
the
water
and

power

supply
and/
transmission

10%

(b) Assessment levels in paragraph (a) hereof shall be applied initially during the first general revision of real
property assessments to be undertaken pursuant to Article
310 of this Rule.
(c) Pending the enactment of a schedule of fair market values under Articles 303 and 310 of this Rule and the
effectivity of the revised new assessment levels, the prevailing schedules of market values and the levels
currently used by the provincial, city, and municipal assessors shall continue to be applied.
ARTICLE 310. General Revision of Assessments and Property Classification. (a) The provincial, city, or
municipal assessor shall undertake a general revision of real property assessment within two (2) years after the
effectivity
of
the
Code
and
every
three
(3)
years
thereafter.
(b) For this purpose, the provincial assessors, the city assessors, and the municipal assessors of MMA shall
prepare the schedule of fair market values for the different kinds and classes of real property located within
their respective territorial jurisdictions within one (1) year from the effectivity of the Code in accordance with
such
rules
and
regulations
issued
by
DOF.

(c) The general revision of assessments and property classification shall commence upon the enactment of an
ordinance by the sanggunian concerned adopting the schedule of fair market values but not later than two (2)
years from the effectivity of the Code. Thereafter, the provincial, city, or municipal assessor shall undertake
the general revision of real property assessment and property classification once every three (3) years.
ARTICLE 311. Valuation of Real Property. In cases where: (a) real property is declared and listed for
taxation purposes for the first time; (b) there is an on-going general revision of property classification and
assessment; or (c) a request is made by the person in whose name the property is declared, the provincial, city
or municipal assessor or his duly authorized deputy shall, in accordance with the provisions of this Rule, make
a classification, appraisal and assessment of the real property listed and described in the declaration
irrespective of any previous assessment or taxpayer's valuation thereon provided that the assessment of real
property shall not be increased oftener than once every three (3) years except in case of new improvements
substantially increasing the value of said property or of any change in its actual use.
ARTICLE 312. Date of Effectivity of Assessment or Reassessment. All assessments or reassessment made
after the first (1st) day of January of any year shall take effect on the first (1st) day of January of the
succeeding year provided, however, that the reassessment of real property due to its partial or total
destruction, or to a major change in its actual use, or to any great and sudden inflation or deflation of real
property values, or to the gross illegality of the assessment when made, or to any other abnormal cause, shall
be made within ninety (90) days from the date any such cause or causes occurred, and shall take effect at the
beginning
of
the
quarter
next
following
the
reassessment.
ARTICLE 313. Assessment of Property Subject to Back Taxes. Real property declared for the first time
shall be assessed for the taxes for the period during which it would have been liable but in no case for more
than ten (10) years prior to the date of initial assessment provided, however, that such taxes shall be computed
on the basis of the applicable schedule of values in force during the corresponding period.
If such taxes are paid on or before the end of the quarter following the date the notice of assessment was
received by the owner or his representative, no interest for delinquency shall be imposed thereon; otherwise,
such taxes shall be subject to an interest at the rate of two percent (2%) per month or a fraction thereof from
the
date
of
receipt
of
the
assessment
until
such
taxes
are
fully
paid.
ARTICLE 314. Notification of New or Revised Assessment. When real property is assessed for the first time
or when an existing assessment is increased or decreased, the provincial, city, or municipal assessor shall,
within thirty (30) days, give written notice of such new or revised assessment to the person in whose name the
property is declared. The notice may be delivered personally or by registered mail or through the assistance of
the punong barangay to the last known address of the person to be served.
ARTICLE 315. Appraisal and Assessment of Machinery. (a) The fair market value of a brand new
machinery shall be the acquisition cost. In all other cases, the fair market value shall be determined by
dividing the remaining economic life of the machinery by its estimated economic life and multiplied by the
replacement
or
reproduction
cost.
(b) If the machinery is imported, the acquisition cost includes freight, insurance, bank and other charges,
brokerage, arrastre and handling, duties and taxes, plus cost of inland transportation, handling, and
installation charges at the present site. The cost in foreign currency of imported machinery shall be converted

to peso cost on the basis of foreign currency exchange rates as fixed by the Central Bank.
ARTICLE 316. Depreciation Allowance for Machinery. For purposes of assessment, a depreciation
allowance shall be made for machinery at a rate not exceeding five percent (5%) of its original cost or its
replacement or reproduction cost, as the case may be, for each year of use provided that the remaining value
for all kinds of machinery shall be fixed at not less than twenty percent (20%) of such original, replacement, or
reproduction cost for so long as the machinery is useful and in operation.
ARTICLE 317. Local Board of Assessment Appeals. (a) Any property owner or person having legal interest
or claim in the property who is not satisfied with the assessment of his property made by the provincial, city, or
municipal assessor pursuant to the provisions of this Rule may, within sixty (60) days from the date of receipt
of the written notice of assessment, appeal to local board of assessment appeals of the province or city where
the subject property is situated by filing a petition under oath in the standard form prescribed therefore,
together with copies of the tax declaration and such affidavits or documents in support of the appeal.
(b) In the case of municipalities within MMA, the appeals may be filed with the municipal board of assessment
appeals
of
each
municipality
as
provided
in
Article
318
of
this
Rule.
ARTICLE 318. Organization, Powers, and Functions of the Local Board of Assessment Appeals. (a) In the
determination and resolution of assessment appeals, the provincial or city board of assessment appeals shall be
composed
of
the
following:
Registrar
Provincial
Provincial

of

Deeds

or
or

City
City

Prosecutor
Engineer

Chairman
Member
Member

(b) In the case of municipalities within MMA, the municipal board of assessment appeals shall be composed of
the
following:
Registrar
municipality
having
over
jurisdiction
Prosecutor
to
Municipal

of

Deeds

or
custody
titles
of
the

of
the
designated
municipality
Engineer

of

of
and
land
municipality
or

the
the
jurisdiction
within
the

Chairman

area

assigned
Member
Member

(c) The chairman and members of the local board of assessment appeals shall serve in an ex officio capacity
without
additional
compensation.
(d) The chairman of the board shall have the power to designate any employee of the province or city, or
municipality
within
MMA,
to
serve
as
secretary
to
the
said
board.
(e) In cases of provinces or cities, and municipalities within MMA without a provincial, city, or municipal

engineer, the district engineer shall serve as member of the board until a provincial or municipal engineer shall
have been duly appointed or designated. In the absence of the registrar of deeds, or the prosecutor, or the local
engineer, the persons performing their duties, whether in an acting capacity or as a duly designated officer-incharge, shall automatically become the chairman or member of the said board, as the case may be.
(f) The chairman and members of the local board of assessment appeals shall assume their respective positions
without need of further appointment or special designation immediately upon effectivity of the Code.
(g) Before the assumption of the official functions or before discharging their duties as chairman and members
of the local board of assessment appeals, they shall take an oath or affirmation of office in the manner herein
set forth:
"I ___________________, after having been appointed to the position of _________________________, in the
province, city, or municipality of ______________, and now assuming my position as ____________ of the
Board of Assessment Appeals of the province, city or municipality of ________, hereby solemnly swear that I
will faithfully discharge to the best of my ability the duties of this position and of all others that I am holding,
or may hereafter hold, under the Republic of the Philippines, and that I will support and defend the
Constitution of the Philippines; and that I will obey the laws and legal orders promulgated by the duly
constituted authorities of the Republic of the Philippines; and that I will well and truly hear and determine all
matters and issues between taxpayers and the provincial or city assessor submitted for my decision, and that I
impose this obligation upon myself voluntarily, without mental reservation or purpose of evasion.
So

help

me

God.

_________________
Signature
Subscribed and sworn to before me on this _______ day of ________, 19____, at _________ Philippines.
_____________________
Signature
Administering Oath

of

Officer

ARTICLE 319. Meetings and Expenses of the Local Board of Assessment Appeals. (a) The local board of
assessment appeals shall meet once a month and as often as may be necessary for the prompt disposition of
appealed cases without entitlement to per diem or traveling expenses for their attendance in board meeting
except when conducting an ocular inspection of real properties whose assessment is under appeal, in which
case, such expenses shall be charged against the general fund of the province or city, or municipality within
MMA,
as
the
case
may
be.
(b) The sanggunian concerned shall include in their general appropriations ordinance necessary funds to
defray
expenses
of
the
board.
ARTICLE 320. Action by the Local Board of Assessment Appeals. (a) From the date of receipt of an appeal,
the local board of assessment appeals shall, on the basis of substantial evidence or such relevant evidence on
record adequately acceptable to support a conclusion, decide such appeal within one hundred twenty (120)

days.
(b) In the exercise of its appellate jurisdiction, the board shall have the power to summon witnesses, administer
oaths, conduct ocular inspection, take depositions, and issue subpoena and subpoena duces tecum. The
proceedings of the board shall be conducted solely for the purpose of ascertaining the facts without necessarily
adhering
to
technical
rules
applicable
in
judicial
proceedings.
(c) The secretary of the board shall furnish the owner of the property or the person having legal interest
therein and the provincial or city assessor or municipal assessor within MMA with a copy of the decision of the
board. In case the provincial or city assessor or municipal assessor within MMA concurs with the revision or
the assessment, it shall be his duty to notify the owner of the property or the person having legal interest
therein of such fact using the form prescribed for the purpose. The owner of the property or the person having
legal interest therein or the assessor who is not satisfied with the decision of the board may, within thirty (30)
days after receipt of the decision of the board, appeal to the Central Board of Assessment Appeals as herein
provided.
The
decision
of
the
Central
Board
shall
be
final
and
executory.
ARTICLE 321. Central Board of Assessment Appeals. The Central Board shall be composed of a chairman
and two (2) members to be appointed by the President, who shall serve for a term of seven (7) years, without
reappointment. Of those first appointed, the chairman shall hold office for seven (7) years, one member for
five (5) years, and the other member of three (3) years. Appointment to any vacancy shall be only for the
unexpired portion of the term of the predecessor. In no case shall any member be appointed or designated in a
temporary or acting capacity. The chairman and the members of the Central Board shall be Filipino citizens,
at least forty(40) years old at the time of their appointment, and members of the Bar or Certified Public
Accountants for at least ten (10) years immediately preceding their appointment. The chairman of the Central
Board shall have the salary grade equivalent to the rank of Director III under the Salary Standardization Law
exclusive of allowances and other emoluments. The members of the Central Board shall have the salary grade
equivalent to the rank of Director II under the Salary Standardization Law exclusive of allowances and other
emoluments. The Central Board shall have appellate jurisdiction over all assessment cases decided by the local
board
and
assessment
appeals.
There shall be hearing officers to be appointed by the Central Board pursuant to civil service law, rules and
regulations, one each of Luzon, Visayas, and Mindanao, who shall hold office in the City of Manila, Cebu City,
and Cagayan de Oro City, respectively, and who shall serve for a term of six (6) years, without reappointment
until their successors shall have been appointed and qualified. The hearing officers shall have the same
qualifications
as
those
of
the
Judges
of
the
Municipal
Trial
Courts.
The hearing officers shall each have a salary grade equivalent to the rank of Director I under the Salary
Standardization Law exclusive of allowances and other emoluments. The hearing officers shall try and receive
evidences on the appealed assessment cases as may be directed by the Central Board.
The Central Board, in the performance of its powers and duties, may establish and organize staffs, offices, or
units, prescribe the titles, functions and duties of their members, and adopt its own rules and regulations.
Unless otherwise provided by law, the annual appropriations for the Central Board shall be included in the
annual
budget
of
DOF.

ARTICLE 322. Effect of Appeal on the Payment of Real Property Tax. Appeals on assessments of real
property made under the provisions of this Rule shall, in no case, suspend the collection of the corresponding
real property taxes on the property involved as assessed by the provincial or city assessor, or the municipal
assessor within MMA, without prejudice to subsequent adjustment depending upon the final outcome of the
appeal.
ARTICLE 323. Power to Levy Real Property Tax. Provinces and cities, and municipalities within MMA,
through their respective sanggunians, may levy the annual ad valorem tax on real property such as land,
buildings, machinery, and other improvements not specifically exempted under this Rule.
ARTICLE 324. Rates of Levy. A province or a city, or a municipality within MMA shall fix a uniform rate
of basic real property tax applicable in their respective jurisdictions as follows:
(a)

For

provinces:

not

exceeding

one

per

cent

(1%)

of

the

assessed

value;

(b) For cities or for municipalities within MMA: not exceeding two percent (2%) of the assessed value.
No public hearing shall be required before the enactment of a local tax ordinance levying the basic real
property
tax.
ARTICLE 325. Exemption from Payment of Real Property Tax. The following are exempted from payment
of
the
real
property
tax:
(a) All real property owned by the Republic of the Philippines or any of its political subdivisions, except when
the beneficial use thereof has been granted, for consideration or otherwise, to a taxable person;
(b) Charitable institutions, churches, parsonages, or convents appurtenant thereto, mosques, nonprofit or
religious cemeteries and all lands, buildings, and improvements actually, directly, and exclusively used for
religious,
charitable
or
educational
purposes;
(c) All machineries and equipment that are actually, directly and exclusively used by local water districts and
GOCCs engaged in the supply and distribution of water and/or generation and transmission of electric power;
(d) All real property owned by duly registered cooperatives as provided in RA 6938; and
(e) Machinery and equipment exclusively used for pollution control and environmental protection.
Except as provided in this Rule, any exemption from payment of real property tax previously granted to, or
presently enjoyed by, all persons, whether natural or juridical, including all GOCCs are withdrawn upon the
effectivity
of
the
Code.
ARTICLE 326. Additional Levy on Real Property for the Special Education Fund. A province or city, or a
municipality within MMA, may levy and collect an annual tax of one percent (1%) on the assessed value of
real property which shall be in addition to the basic real property tax. The proceeds thereof shall exclusively
accrue
to
the
special
education
fund.

All provinces and cities, and the municipalities within MMA shall enact their respective tax ordinances
imposing
the
additional
tax
for
the
special
education
fund.
No public hearing shall be required before the enactment of a local tax ordinance levying the additional one
percent
(1%)
special
education
fund
tax.
ARTICLE 327. Additional Ad Valorem Tax on Idle Lands. A province or city, or a municipality within
MMA, may levy an annual tax on idle lands at the rate not exceeding five percent (5%) of the assessed value of
the
property
which
shall
be
in
addition
to
the
basic
real
property
tax.
ARTICLE 328. Idle Lands, Coverage. For purposes of real property taxation, idle lands shall include the
following:
(a) Agricultural lands, more than one (1) hectare in area, suitable for cultivation, dairying, inland fishery, and
other agricultural uses, one-half () of which remain uncultivated or unimproved by the owner of the property
or person having legal interest therein. Agricultural lands planted to permanent or perennial crops with at
least fifty (50) trees to a hectare shall not be considered idle lands. Lands actually used for grazing purposes
shall
likewise
not
be
considered
idle
lands.
(b) Lands, other than agricultural, located in a city or municipality, more than one thousand (1,000) square
meters in area one-half () of which remain unutilized or unimproved by the owner of the property or person
having
legal
interest
therein.
Regardless of land area, this Article shall likewise apply to residential lots in subdivisions duly approved by
proper authorities, the ownership of which has been transferred to individual owners, who shall be liable for
the additional tax provided that individual lots of such subdivisions, the ownership of which has not been
transferred to the buyer shall be considered as part of the subdivision, and shall be subject to the additional
tax
payable
by
the
subdivision
owner
or
operator.
ARTICLE 329. Idle Lands Exempt from Tax. A province or a city or a municipality within MMA may
exempt idle lands from the additional levy by reason of force majeure, civil disturbance, natural calamity, or
any cause or circumstance which physically or legally prevents the owner of the property or person having
legal
interest
therein
from
improving,
utilizing,
or
cultivating
the
same.
ARTICLE 330. Listing of Idle Lands by the Local Assessor. The provincial, city, or municipal assessor shall
make and keep an updated record of all idle lands located within his area of jurisdiction. For purposes of
collection, the provincial, city, or municipal assessor shall furnish a copy thereof to the provincial or city
treasurer who shall notify, on the basis of such record, the owner of the property or person having legal
interest
therein
of
the
imposition
of
the
additional
tax.
ARTICLE 331. Special Levy by Local Government Units. A province, city, or municipality may impose a
special levy on the lands comprised within its territorial jurisdiction specially benefited by public works
projects or improvements funded by the LGU concerned provided that the special levy shall not exceed sixty
percent (60%) of the actual cost of such projects and improvements, including the costs of acquiring land and
such other real property in connection therewith and provided further that the special levy shall not apply to
lands exempt from basic real property tax and the remainder of the land portions of which have been donated
to the LGU concerned for the construction of such projects or improvements.

ARTICLE 332. Ordinance Imposing a Special Levy. A tax ordinance imposing a special levy shall describe
with reasonable accuracy the nature, extent, and location of the public works projects or improvements to be
undertaken, state the estimated cost thereof, specify the metes and bounds by monuments and lines and the
number of annual installments for the payment of the special levy which in no case shall be less than five (5)
nor more than ten (10) years. The sanggunian concerned shall not be obliged, in the apportionment and
computation of the special levy, to establish a uniform percentage of all lands subject to the payment of the tax
for the entire district, but it may fix different rates for different parts or sections thereof, depending on
whether
such
land
is
more
or
less
benefited
by
the
proposed
work.
ARTICLE 333. Publication of Proposed Ordinance Imposing a Special Levy. Before the enactment of an
ordinance imposing a special levy, the sanggunian concerned shall conduct a public hearing thereon and notify
in writing the owners of the real property to be affected or the persons having legal interest therein as to the
date and place thereof and afford the latter the opportunity to express their positions or objections relative to
the
proposed
ordinance.
ARTICLE 334. Fixing the Amount of Special Levy. The special levy authorized herein shall be apportioned,
computed, and assessed according to the assessed valuation of the lands affected as shown by the books of the
local assessor concerned, or its current assessed value as fixed by said assessor if the property does not appear
on record in his books. Upon the effectivity of the ordinance imposing special levy, the assessor concerned shall
forthwith proceed to determine the annual amount of special levy assessed against each parcel of land
comprised within the area especially benefited and shall send to each landowner a written notice thereof by
mail,
personal
service,
or
publication
in
appropriate
cases.
ARTICLE 335. Taxpayers' Remedies Against Special Levy. Any owner of real property affected by a special
levy or any person having a legal interest therein may, upon receipt of the written notice of assessment of the
special
levy,
avail
of
the
remedies
provided
in
Article
317
of
this
Rule.
ARTICLE 336. Accrual of Special Levy. The special levy shall accrue on the first day of the quarter next
following
the
effectivity
of
the
ordinance
imposing
such
levy.
ARTICLE 337. Date of Accrual of Tax. The real property tax for any year shall accrue on the first day of
January and from the date it shall constitute a lien on the property which shall be superior to any other lien,
mortgage, or encumbrance of any kind whatsoever, and shall be extinguished only upon the payment of the
delinquent
tax.
ARTICLE 338. Collection of Tax. The collection of the real property tax with interest thereon and related
expenses, and the enforcement of the remedies provided in this Rule or any applicable laws, shall be the
responsibility
of
the
city
or
municipal
treasurer
concerned.
Property owners, however, at their option or convenience, may pay their real property taxes to the provincial
treasurer of the province to which the municipality where the subject property is located, belongs.
The city or municipal treasurer may deputize the barangay treasurer to collect all taxes on real property
located in the barangay provided that the barangay treasurer is properly bonded for the purpose and provided
further that the premium on the bond shall be paid by the city or municipality concerned.

ARTICLE 339. Local Assessor to Furnish Local Treasurer with Assessment Roll. The provincial, city, or
municipal assessor shall prepare and submit to the local treasurer concerned, on or before the thirty-first
(31st) day of December each year, an assessment roll containing a list of all persons whose real properties have
been
newly
assessed
or
reassessed
and
the
values
of
such
properties.
ARTICLE 340. Notice of Time for Collection of Tax. The city or municipal treasurer shall, on or before the
thirty-first (31st) day of January each year, in the case of the basic real property tax and the additional tax for
special education fund or on any other date to be prescribed by the sanggunian concerned in the case of any
other tax levied in this Rule, post the notice of the dates when the tax may be paid without interest at a
conspicuous and publicly accessible place at the city or municipal hall. Said notice shall likewise be published
in a newspaper of general circulation in the locality once a week for two (2) consecutive weeks.
ARTICLE 341. Payment of Real Property Taxes in Installments. The owner of the real property or the
person having legal interest therein may pay the basic real property tax and the additional tax for special
education fund due thereon without interest in four (4) equal installments; the first installment to be due and
payable on or before the thirty-first (31st) of March, the second installment, on or before the thirtieth (30th) of
June; the third installment, on or before the thirtieth (30th) of September, and the last installment on or before
the thirty-first (31st) of December, except the special levy for which the payment thereof shall be governed by
ordinance
of
the
sanggunian
concerned.
The date for payment of any other tax imposed in this Rule without interest shall be prescribed by the
sanggunian
concerned.
Payments of real property taxes shall first be applied to prior years delinquencies, interests, and penalties, if
any, and only after said delinquencies are settled may tax payments be credited for the current period.
ARTICLE 342. Tax Discount for Advanced and Prompt Payment. If the basic real property tax and the
additional tax accruing to special education fund are paid on time or in advance in accordance with the
prescribed schedule of payment as provided in Article 341 of this Rule, the sanggunian concerned may grant a
discount
not
exceeding
twenty
percent
(20%)
of
the
annual
tax
due.
For purposes of this Rule, prompt payments may be given a discount of ten percent (10%), while advanced
payments may be entitled to the maximum discount of twenty percent (20%).
ARTICLE 343. Payment Under Protest. (a) No protest shall be entertained unless the taxpayer first pays
the tax. There shall be annotated on the tax receipts the words paid under protest. The protest in writing must
be filed within thirty (30) days from payment of the tax to the provincial or city treasurer, or municipal
treasurer, in the case of a municipality within MMA, who shall decide the protest within sixty (60) days from
receipt.
(b) The tax or a portion thereof paid under protest shall be held in trust by the local treasurer concerned. Fifty
percent (50%) of the tax paid under protest shall, however, be distributed in accordance with the provisions of
this
Rule
on
the
distribution
of
proceeds.
(c) In the event that the protest is finally decided in favor of the taxpayer, the amount or portion of the tax

protested shall be refunded to the protestant, or applied as tax credit against his existing or future tax liability.
(d) In the event that the protest is denied or upon the lapse of the sixty-day period prescribed in paragraph (a)
hereof, the taxpayer may avail of the remedies provided in Articles 317 and 320 of this Rule.
ARTICLE 344. Repayment of Excessive Collections. When an assessment of basic real property tax, or any
other tax levied in this Rule, is found to be illegal or erroneous and the tax is accordingly reduced or adjusted,
the taxpayer may file a written claim for refund or credit for taxes and interests with the provincial or city
treasurer within two (2) years from the date the taxpayer is entitled to such reduction or adjustment.
The provincial or city treasurer shall decide the claim for tax refund or credit within sixty (60) days from
receipt thereof. In case the claim for tax refund or credit is denied, the taxpayer may avail of the remedies as
provided
in
this
Rule.
ARTICLE 345. Notice of Delinquency in the Payment of Real Property Tax. (a) When the real property tax
or any other tax imposed in this Rule becomes delinquent, the provincial, city or municipal treasurer shall
immediately cause a notice of the delinquency to be posted at the main entrance of the provincial capitol, or
city or municipal hall and in a publicly accessible and conspicuous place in each barangay of the LGU
concerned. The notice of delinquency shall also be published once a week for two (2) consecutive weeks, in a
newspaper of general circulation in the province, city, or municipality concerned.
(b) The notice shall specify the date upon which the tax became delinquent and shall state that personal
property may be distrained to effect payment. It shall likewise state that at any time before the distraint of
personal property, payment of the tax with surcharges, interests and penalties may be made in accordance
with Article 346 of this Rule, and unless the tax, surcharges, and penalties are paid before the expiration of the
year for which the tax is due, except when the notice of assessment or special levy is contested administratively
or judicially pursuant to the provisions of this Rule, the delinquent real property will be sold at public auction,
and the title to the property will be vested in the purchaser, subject, however, to the right of the delinquent
owner of the property or any person having legal interest therein to redeem the property within one (1) year
from
the
date
of
sale.
ARTICLE 346. Interests on Unpaid Real Property Tax. Failure to pay the basic real property tax or any
other tax levied in this Rule upon the expiration of the periods prescribed in Article 341 hereof, or when due,
as the case may be, shall subject the taxpayer to the payment of interest at the rate of two percent (2%) per
month on the unpaid amount or a fraction thereof, until the delinquent tax shall have been fully paid provided
that in no case shall the total interest on the unpaid tax or portion thereof exceed thirty-six (36) months.
ARTICLE 347. Remedies for the Collection of Real Property Tax. For the collection of the basic real
property tax and any other tax levied under this Rule, LGU may avail of remedies by administrative or
judicial action. The administrative remedies which are summary in nature are:
(a)
(b)

Levy
Sale

on
of

real

real
property

property,
at

public

and
auction.

The judicial remedy is availed of in the court of appropriate jurisdiction. These remedies are cumulative,

simultaneous and unconditional, that is, any or all of the remedies or combination thereof may be resorted to
and the use or non-use of one remedy shall not be a bar against the institution of the others. Formal demand
for the payment of the delinquent taxes and penalties due is not a pre-requisite to such remedies. The notice of
delinquency required in Article 346 of this Rule shall be sufficient for the purpose.
ARTICLE 348. Local Government Lien. The basic real property tax and any other tax levied under this
Rule constitute a lien on the property subject to tax, superior to all liens, charges or encumbrances in favor of
any person, irrespective of the owner or possessor thereof, enforceable by administrative or judicial action,
and may only be extinguished upon payment of the tax and the related interests and expenses.
ARTICLE 349. Levy on Real Property. After the expiration of the time required to pay the basic real
property tax or any other tax levied under this Rule, real property subject to such tax may be levied upon
through the issuance of a warrant on or before, or simultaneously with the institution of the civic action for the
collection of the delinquent tax. Levy on real property shall be made in the manner herein set forth.
(a) The provincial or city treasurer, or municipal treasurer of a municipality within MMA when issuing a
warrant of levy shall prepare the duly authenticated certificate showing the name of the delinquent property
owner or person having legal interest therein, the description of the property, the amount of the tax due and
the
interest
thereon.
(b) The warrant shall be mailed to or served upon the delinquent real property owner or person having legal
interest therein. In case he is out or can not be located, to the occupant or administrator of the subject
property.
(c) Written notice of levy with the attached warrant shall be mailed to or served upon the assessor and the
registrar of deeds of the province, city, or municipality within MMA where the property is located.
(d) The assessor and registrar of deeds shall annotate the levy on the tax declaration and the certificate of title,
respectively.
(e) The levying officer shall submit a written report on the levy to the sanggunian concerned within ten (10)
days after receipt of the warrant by the property owner or person having legal interest in the property.
ARTICLE 350. Penalty for Failure to Issue and Execute Warrant. Without prejudice to criminal
prosecution under the Revised Penal Code and other applicable laws, any local treasurer or his deputy who
fails to issue or execute the warrant of levy within one (1) year from the time the tax becomes delinquent or
within thirty (30) days from the date of the issuance thereof, or who is found guilty of abusing the exercise
thereof in an administrative or judicial proceeding shall be dismissed from the service.
ARTICLE 351. Advertisement and Sale. Within thirty (30) days after service of the warrant of levy, the
local treasurer shall proceed to publicly advertise for sale or auction the property or a usable portion thereof
as may be necessary to satisfy the tax delinquency and expenses of sale. The advertisement shall be effected by
posting a notice at the main entrance of the provincial, city, or municipal building, and in a conspicuous and
publicly accessible place in the barangay where the real property is located, and by publication once a week for
two (2) weeks in a newspaper of general circulation in the province, city, or municipality where the property is
located. The advertisement shall specify the amount of the delinquent tax, the interest due thereon and

expenses of sale, the date and place of sale, the name of the owner of the real property or person having legal
interest therein, and a description of the property to be sold. At any time before the date fixed for the sale, the
owner of the real property or person having legal interest therein may stay the proceedings by paying the
delinquent tax, the interest due thereon and the expenses of sale. The sale shall be held either at the main
entrance of the provincial, city, or municipal building, or on the property to be sold, or any other place as
specified
in
the
notice
of
the
sale.
Within thirty (30) days after the sale, the local treasurer or his deputy shall make a report of the sale to the
sanggunian concerned, and which shall form part of his records. The local treasurer shall likewise prepare and
deliver to the purchaser a certificate of sale which shall contain the name of the purchaser, a description of the
property sold, the amount of the delinquent tax, the interest due thereon, the expenses of the sale and a brief
description of the proceedings provided that, proceeds of the sale in excess of the delinquent tax, the interest
due thereon, and the expenses of sale shall be remitted to the owner of the real property or person having legal
interest
therein.
The local treasurer may, by a duly approved ordinance, advance an amount sufficient to defray the costs of
collection through the remedies provided for in this Rule, including the expenses of advertisement and sale.
ARTICLE 352. Redemption of Property Sold. Within one (1) year from the date of sale, the owner of the
delinquent real property or person having legal interest therein, or his representative, shall have the right to
redeem the property upon payment to the local treasurer of the amount of the delinquent tax, including the
interest due thereon, and the expenses of sale from the date of delinquency to the date of sale, plus interest of
not more than two percent (2%) per month on the purchase price from the date of sale to the date of
redemption. Such payment shall invalidate the certificate of sale issued to the purchaser and the owner of the
delinquent real property or person having legal interest therein shall be entitled to a certificate of redemption
which
shall
be
issued
by
the
local
treasurer
or
his
deputy.
From the date of sale until the expiration of the period of redemption, the delinquent real property shall
remain in the possession of the owner or person having legal interest therein who shall be entitled to the
income
and
other
fruits
thereof.
The local treasurer or his deputy, upon receipt from the purchaser of the certificate of sale, shall forthwith
return to the latter the entire amount paid by him plus interest of not more than two percent (2%) per month.
Thereafter, the property shall be free from the lien of such delinquent tax, interest due thereon and expenses of
sale.
ARTICLE 353. Final Deed to Purchaser. In case the owner or person having legal interest therein fails to
redeem the delinquent property as provided herein, the local treasurer shall execute a deed conveying to the
purchaser said property, free from lien of the delinquent tax, interest due thereon and expenses of sale. The
deed shall briefly state the proceedings upon which the validity of the sale rests.
ARTICLE 354. Purchase of Property By the Local Government Units for Want of Bidder. In case there is
no bidder for the real property advertised for sale as provided herein, or if the highest bid is for an amount
insufficient to pay the real property tax and the related interest and costs of the sale, the local treasurer
conducting the sale shall purchase the property in behalf of the LGU concerned to satisfy the claim and within
two (2) days thereafter shall make a report of his proceedings which shall be reflected upon the records of his

office. It shall be the duty of the registrar of deeds concerned, upon registration with his office of any such
declaration of forfeiture, to transfer the title of the forfeited property to the LGU concerned without the
necessity
of
an
order
from
a
competent
court.
Within one (1) year from the date of such forfeiture, the taxpayer or his representative, may redeem the
property by paying to the local treasurer the full amount of the real property tax and the related interest and
costs of sale. If the property is not redeemed as provided herein, the ownership thereof shall be fully vested on
the
LGU
concerned.
ARTICLE 355. Resale of Real Estate Taken for Taxes, Fees, or Charges. The sanggunian concerned may, by
a duly approved ordinance, and upon notice of not less than twenty (20) days, sell and dispose of the real
property acquired under the preceding Article at public auction. The proceeds of the sale shall accrue to the
general
fund
of
the
LGU
concerned.
ARTICLE 356. Further Distraint or Levy. Levy may be repeated if necessary on the same property subject
to
tax
until
the
full
amount
due,
including
all
expenses,
is
collected.
ARTICLE 357. Collection of Real Property Tax Through the Courts. The delinquent basic real property tax
or any other tax levied under this Rule shall constitute a lawful indebtedness of the taxpayer to the LGU.
Collection of such indebtedness can be enforced thru civil action in any court of competent jurisdiction, as
follows:
(a) The provincial or city treasurer, or municipal treasurer of a municipality of MMA shall furnish the
provincial attorney or city or municipal legal officer a certified statement of delinquency who, within fifteen
(15) days after receipt, shall file the civil action in the name of the province, city, or municipality in the proper
court of competent jurisdiction. The jurisdiction of the court is determined by the amount sought to be
recovered exclusive of interests and costs. Thus, where the delinquent tax due does not exceed Ten Thousand
Pesos (P10,000.00), the competent court is the municipal or city trial court, and where the amount due is in
excess of Ten Thousand Pesos (P10,000.00), the proper court is the regional trial court.
(b) Where cognizable in an inferior court, the action must be filed in the municipality or city where the
delinquent property is located. Where the regional trial court has jurisdiction, the plaintiff LGU shall file the
complaint
in
the
city
or
province
where
the
property
is
situated.
(c) In both cases, that is, where the claim is either cognizable by an inferior court or by the regional trial court,
the provincial or city treasurer shall furnish the provincial attorney or the city or municipal legal officer
concerned the exact address of the defendant where he may be served with summons.
ARTICLE 358. Action Assailing Validity of Tax Sale. (a) No court shall entertain any action assailing the
validity of any sale at public auction of real property or rights therein under this Rule until the taxpayer shall
have deposited with the court the amount for which the real property was sold, together with interest of two
percent (2%) per month from the date of sale to the time of the institution of the action. The amount so
deposited shall be paid to the purchaser at the auction sale if the deed is declared invalid but it shall be
returned
to
the
depositor
if
the
action
fails.
(b) No court shall declare a sale at public auction invalid by reason of irregularities or informalities in the

proceedings unless the substantive rights of the delinquent owner of the real property or the person having
legal
interest
therein
have
been
impaired.
ARTICLE 359. Payment of Delinquent Taxes on Property Subject of Controversy. In any action involving
the ownership or possession of, or succession to, real property the court may, motu proprio or upon
representation of the provincial, city, or municipal treasurer or their respective deputies, award such
ownership, possession, or succession to any party to the action upon payment to the court of the taxes with
interests due to the property and all other costs that may have accrued, subject to the final outcome of the
action.
ARTICLE 360. Certification of Local Treasurer on Delinquencies Remaining Uncollectible. The provincial,
city, or municipal treasurer or their deputies shall prepare a certified list of all real property tax delinquencies
which remained uncollected or unpaid for at least one (1) year in his jurisdiction, and a statement of the reason
or reasons for such non-collection or non-payment, and shall submit said documents to the sanggunian
concerned on or before December thirty-first (31st) of the year immediately succeeding the year in which the
delinquencies were incurred, with a request for assistance in the enforcement of the remedies for collection
provided
in
this
Rule.
ARTICLE 361. Periods Within Which To Collect Real Property Taxes. The basic real property tax and any
other tax levied under this Rule shall be collected within five (5) years from the date they become due. No
action for collection of the tax, whether administrative or judicial, shall be instituted after the expiration of
such period. In case of fraud or intent to evade payment of the tax, such action may be instituted for the
collection thereof within ten (10) years from the discovery of such fraud or intent to evade payment.
The period of prescription within which to collect shall be suspended for the time during which:
(a)

The

local

treasurer

is

legally

prevented

from

collecting

the

tax;

(b) The owner of the property or the person having legal interest therein requests for reinvestigation and
executes a waiver in writing before the expiration of the period within which to collect; and
(c) The owner of the property or the person having legal interest therein is out of the country or otherwise
cannot
be
located.
ARTICLE 362. Distribution of Proceeds. (a) The proceeds of the basic real property tax, including interest
thereon, and proceeds from use, lease or disposition, sale or redemption of property acquired at a public
auction, and fifty percent (50%) of the tax paid under protest collected by the local treasurer shall be
distributed
as
follows:
Provinces
(1)

Provincial

Share

Thirty-five

percent

(35%)

shall

accrue

to

the

general

fund.

(2) Municipal Share Forty percent (40%) shall accrue to the general fund of the municipality where the
property
is
located.

(3) Barangay Share Twenty-five percent (25%) shall accrue to the barangay where the property is located.
Cities
(1) City Share Seventy percent (70%) shall accrue to the general fund of the city.
(2) Barangay Share Thirty percent (30%) shall be distributed among the component barangays of the cities
where
the
property
is
located
in
the
following
manner:
(i)

Fifty

percent

(50%)

share

accrue

to

the

(ii) Fifty percent

Municipality

(50%)

shall

accrue equally
within

barangay
to

all

where

the

property

component barangays
MMA

is
of

located.
the

city.

(1) Metropolitan Manila Authority Share Thirty-five percent (35%) shall accrue to the general fund of the
Authority.
(2) Municipal Share Thirty-five percent (35%) shall accrue to the general fund of the municipality where
the
property
is
located.
(3) Barangay Share Thirty percent (30%) shall be distributed among the component barangays of the
municipality
where
the
real
property
is
located
in
the
following
manner:
(i)

Fifty

percent

(50%)

shall

accrue

to

the

barangay

where

the

property

is

located.

(ii) Fifty percent (50%) shall accrue equally to all component barangays of the municipality.
(b) The share of each barangay shall be released directly to the barangay treasurer on a quarterly basis within
five (5) days after the end of each quarter, without need of any further action, and shall not be subject to any
lien or holdback for whatever purpose subject to such rules as may be prescribed by COA for this purpose.
ARTICLE 363. Application of Proceeds of the Additional One Percent (1%) Special Education Fund Tax.
(a) The proceeds of the additional one percent (1%) real property tax accruing to special education fund shall
be
automatically
released
to
the
local
school
boards.
(b) In case of provinces, the process of the special education fund shall be divided equally between the
provincial
and
municipal
school
boards.
(c) Said proceeds shall be allocated as determined and approved by the local school board concerned only for
the
following
purposes:
(1)
(2)
(3)

operation
construction

and
and

repair

maintenance
of

educational

school

of
buildings,

public
facilities
research;

schools;
and

equipment;

(4)
(5)

purchase

of
sports

books

and

periodicals;

and

development.

ARTICLE 364. Proceeds of the Tax on Idle Lands. The collection of additional real property tax on the idle
lands shall accrue to the respective general fund of the province or city where the land subject to tax is
situated. In the case of a municipality within MMA, the same shall accrue equally to the Metropolitan Manila
Authority and the municipality where the land is situated. Accordingly, the proceeds of this tax shall be treated
in
the
income
account
as
revenue
from
taxation.
ARTICLE 365. Proceeds of the Special Levy. The proceeds of the special levy of lands benefited by public
works, projects and other improvements shall accrue to the general fund of the LGU which financed such
public works, projects or other improvements. Accordingly, all income derived from this special levy shall be
treated
in
the
income
account
as
revenue
from
taxation.
ARTICLE 366. General Assessment Revision; Expenses Incident Thereto. (a) The sanggunian of provinces,
cities and municipalities within MMA shall provide the necessary appropriations to defray the expenses
incident
to
the
general
revision
of
real
property
assessment.
(b) All expenses incident to a general revision of real property assessments shall, by ordinance of the
sangguniang panlalawigan, be apportioned between the province and the municipality on the basis of the
taxable
area
of
the
municipality
concerned.
(c) The barangays may be required by the sanggunian of the city or municipality to share in the expenses to be
incurred
for the
conduct
of
a
general
revision
of
real
property
assessments.
ARTICLE 367. Condonation or Reduction of Real Property Tax and Interest. In case of a general failure of
crops or substantial decrease in the price of agricultural or agribased products, or calamity in any province,
city, or municipality, the sanggunian concerned, by ordinance passed prior to the first (1st) day of January of
any year and upon recommendation of the Local Disaster Coordinating Council, may condone or reduce,
wholly or partially, the taxes and interest thereon for the succeeding year or years in the city or municipality
affected
by
the
calamity.
ARTICLE 368. Condonation or Reduction of Tax by the President of the Philippines. The President of the
Philippines may, when public interest so requires, condone or reduce the real property tax and interest for any
year
in
any
province
or
city
or
a
municipality
within
MMA.
ARTICLE 369. Duty of Registrar of Deeds and Notaries Public to Assist the Provincial, City, or Municipal
Assessor. It shall be the duty of the registrar of deeds and notaries public to furnish the provincial, city, or
municipal assessor with copies of all contracts selling, transferring or otherwise conveying, leasing or
mortgaging
real
property
received
by,
or
acknowledged
before
them.
ARTICLE 370. Duty of Insurance Companies to Furnish Information to Local Assessor. Insurance
companies are hereby required to furnish the provincial, city, or municipal assessor copies of any contract or
policy insurance on buildings, structures, and improvements insured by them or such other documents which

may

be

necessary

for

the

proper

assessment

thereof.

ARTICLE 371. Fees in Court Actions. All court actions, criminal or civil, instituted at the instance of the
provincial, city, or municipal treasurer or assessor under the provisions of this Rule, shall be exempt from the
payment
of
court
and
sheriff's
fees.
ARTICLE 372. Fees in Registration of Papers or Documents on Sale of Delinquent Real Property to Provinces,
Cities, or Municipalities. All certificates, documents and papers covering the sale of delinquent property to
the province, city, or municipality, if registered in the Registry of Property, shall be exempt from the
documentary
stamp
tax
and
registration
fees.
ARTICLE 373. Real Property Assessment Notices or Owner's Copies of Tax Declarations To Be Exempt from
Postal Charges or Fees. All real property assessment notices or owner's copies of tax declarations sent
through the mails by the assessor shall be exempt from payment of postal charges or fees.
ARTICLE 374. Sale and Forfeiture Before Effectivity of the Code. Tax delinquencies incurred, and sales
and forfeitures of delinquent real property effected, before the effectivity of the Code, shall be governed by the
provisions
of
applicable
laws
then
in
force.
ARTICLE 375. Penalties for Omission of Property from Assessment or Tax Rolls by Officers and Other Acts.
Any officer charged with the duty of assessing a real property who willfully fails to assess, or who
intentionally omits from the assessment or tax roll any real property which he knows to be taxable, or who
willfully or negligently underassesses any real property, or who intentionally violates or fails to perform any
duty imposed upon him by law relating to the assessment of taxable real property shall, upon conviction, be
punished by imprisonment of not less than one (1) month nor more than six (6) months, or by a fine of not less
than One Thousand Pesos (P1,000.00) nor more than Five Thousand Pesos (P5,000.00), or both such
imprisonment
and
fine,
at
the
discretion
of
the
court.
The same penalty shall be imposed upon any officer charged with the duty of collecting the tax due on real
property who willfully or negligently fails to collect the tax and institute the necessary proceedings for the
collection
of
the
same.
Any other officer required by this Rule to perform acts relating to the administration of the real property tax
or to assist the assessor or treasurer in such administration, who willfully fails to discharge such duties shall,
upon conviction, be punished by imprisonment of not less than one (1) month nor more than six (6) months, or
by a fine of not less than Five Hundred Pesos (P500.00) nor more than Five Thousand Pesos (P5,000.00), or
both
such
imprisonment
and
fine,
at
the
discretion
of
the
court.
ARTICLE 376. Penalties for Delaying Assessment of Real Property and Assessment Appeals. Any
government official who intentionally and deliberately delays the assessment of real property or the filing of
any appeal against its assessment shall, upon conviction, be punished by imprisonment of not less than one (1)
month nor more than six (6) months, or by a fine of not less than Five Hundred Pesos (P500.00), nor more than
Five Thousand Pesos (P5,000.00), or both such imprisonment and fine, at the discretion of the court.
ARTICLE 377. Penalties for Failure to Dispose of Delinquent Real Property at Public Auction. The local
treasurer concerned who fails to dispose of delinquent real property at public auction in compliance with the

pertinent provisions of this Rule, and any other LGU official whose acts hinder the prompt disposition of
delinquent real property at public auction shall, upon conviction, be subject to imprisonment of not less than
one (1) month nor more than six (6) months, or a fine of not less than One Thousand Pesos (P1,000.00) nor
more than Five Thousand Pesos (P5,000.00), or both such imprisonment and fine, at the discretion of the court.
RULE XXXII
Shares of Local Government Units in the Proceeds of National Taxes
PART I
Internal Revenue Allotment
ARTICLE 378. Allotment of Internal Revenue Taxes. The total annual internal revenue allotments (IRAs)
due the LGUs shall be determined on the basis of collections from national internal revenue taxes actually
realized as certified by the BIR during the third fiscal year preceding the current fiscal year as follows:
(a)
(b)
(c)

For
For
For

the

first
the

the

year

of

second
third

effectivity
year

year

of

the

(1993),

(1994),

and

Code

(1992),

thirty-five
thereafter,

thirty

percent
forty

percent
(35%);
percent

(30%);
and
(40%).

ARTICLE 379. Adjustment in the Internal Revenue Allotment Share. (a) In the event that an
unmanageable public sector deficit is incurred by the National Government, the Secretary of Finance, the
Secretary of the Interior and Local Government, and the Secretary of Budget and Management shall submit to
the President a joint recommendation that will institute necessary adjustments in the IRAs of LGUs.
(b) Upon receipt of the joint recommendation of the Secretary of Finance, the Secretary of the Interior and
Local Government, and the Secretary of Budget and Management and subject to consultation with the
presiding officers of both Houses of Congress and the presidents of the leagues of LGUs, the President shall
authorize the necessary adjustments of the total IRA to be distributed among LGUs for the given year,
provided that in no case shall the adjusted amount be less than thirty percent (30%) of the national internal
revenue tax collections of the third fiscal year preceding the fiscal year during which the reduction is to be
made.
(c) Adjustment to the IRA share of LGUs shall be made only after effecting a corresponding reduction of the
National Government expenditures including cash and non-cash budgetary aids to GOCCs, government
financial institutions (GFIs), the Oil Price Stabilization Fund (OPSF), and the Central Bank (CB).
ARTICLE 380. Scope. (a) The IRA of LGUs shall be an integration of all allotments received by them under
existing laws, such as the regular internal revenue allotments, the specific tax allotments (STA), and shares
from
the
Local
Government
Revenue
Stabilization
Fund
(LGRSF).
(b) Without prejudice to the provisions of RA 6743, the IRA of LGUs under the Autonomous Region in Muslim
Mindanao shall be governed by the Code and the related implementing guidelines, which in no case shall be
less than the amount as determined by the computational formula provided in Article 382 of this Rule.

(c) The share of COA in the collections of internal revenue taxes shall continue to be governed by Sec. 24 (3) of
PD
1445,
as
amended.
ARTICLE 381. Cost of Devolved Personal Services. For the first year of the effectivity of the Code, the
thirty percent (30%) IRAs due LGUs shall include the cost of devolved functions for essential public services.
The amount equivalent to the cost of devolved personal services shall be remitted to LGUs concerned in
addition
to
their
respective
IRA
for
the
year.
ARTICLE 382. Allocation of the Internal Revenue Allotment. (a) The total annual IRA shares due all LGUs
shall
be
allocated
as
follows:
Provinces
Cities
Municipalities
Barangays

Twenty-three
Twenty-three
Thirty-four
Twenty

percent

(23%)
percent

(23%)

percent
percent

(34%)
(20%)

(b) The share of every province, city, and municipality shall be determined on the basis of the following
distribution
formula:
Population
Land
Equal

Area
Sharing

Fifty
Twenty-five
Twenty-five

percent
percent
percent

(50%)
(25%)
(25%)

(c) Every barangay with a population of not less than one hundred (100) inhabitants shall be entitled to an IRA
share of not less than Eighty Thousand Pesos (P80,000.00) per annum chargeable against the 20% share of the
barangays
from
the
total
IRA;
(d) After deducting the aggregate sum of the individual barangay share of Eighty Thousand Pesos (P80,000.00)
each from the total twenty percent (20%) allocation for all barangays, the remaining balance of said twenty
percent (20%) allocation shall be further distributed to the barangays on the basis of the following formula:
(1)

For

Population
Equal

Sharing

(2)

For

Population
Equal
(3)
Population
Equal

Calendar

percent
Sixty

Calendar

Sharing
For

Forty

Year

Fifty

Sharing

Year
Sixty

(40%);
percent
Year

percent
Fifty

Calendar

1992

1994;
percent
Forty

and
(60%).
1993

(50%)
percent
and
(60%);
percent

and
(50%)
thereafter
and
(40%).

(e) Financial requirements for the initial year of existence of provinces, cities, and municipalities to be created
after the effectivity of the Code shall be specified in the law creating said LGUs.
(f) Financial requirements of barangays created by LGUs after the effectivity of the Code shall be the
responsibility
of
the
LGU
concerned.
ARTICLE 383. Automatic Release of IRA Shares of LGUs. (a) The individual shares in IRA of each LGU
shall be automatically released, without need of any further action, direct to the provincial, city, municipal, or
barangay treasurer, as the case may be, on a quarterly basis but not beyond five (5) days after the end of each
quarter.
(b) For the purpose of implementing this Article, the comprehensive Advice of Allotment for the IRA shares of
LGUs for the whole year shall be released by DBM within the first ten (10) days of January of every year.
The corresponding Notices of Cash Allocation and checks, however, may be released on a monthly basis but in
no case shall the total amount due any LGU for each quarter be released beyond five (5) days after the end of
the
corresponding
quarter.
(c) The IRA share of LGUs shall not be subject to any lien or holdback that may be imposed by the National
Government for whatever purpose unless otherwise provided in the Code or other applicable laws and loan
contract or project agreements arising from foreign loans and international commitments, such as premium
contributions of LGUs to the Government Service Insurance System and loans contracted by LGUs under
foreign-assisted
projects.
(d) No LGU shall receive an annual IRA share that will be less than the total amount it actually received in
1991.
ARTICLE 384. Allocation of Twenty Percent (20%) IRA Share of LGUs for Development Projects. It shall
be mandatory for each LGU to set aside in its annual budgets amounts no less than twenty percent (20%) of its
IRA for the year as appropriation for local development projects that are embodied or contained in the local
development plans. Copies of local development plans shall be furnished the DILG.
ARTICLE 385. Simplified Disbursement Scheme. The Secretary of Finance shall, in consultation with the
Secretary of Budget and Management, design and install a simplified disbursement scheme that will ensure the
prompt and regular release of the individual IRA shares of all LGUs.
PART II
Share of Local Government Units in the National Wealth
ARTICLE 386. Share in the Proceeds from the Development and Utilization of the National Wealth. (a)
LGUs shall have an equitable share in the proceeds derived from the utilization and development of the
national wealth within their respective areas, including sharing the same with the inhabitants by way of direct
benefits.
(b) The term national wealth shall mean all natural resources situated within the Philippine territorial
jurisdiction including lands of public domain, waters, minerals, coal, petroleum, mineral oils, potential energy

forces, gas and oil deposits, forest products, wildlife, flora and fauna, fishery and aquatic resources, and all
quarry
products.
ARTICLE 387. Amount of Share of Local Government Units. (a) LGUs shall, in addition to the IRA, have a
share of forty percent (40%) of the gross collection derived by the National Government from the preceding
fiscal
year
from
the
following:
(1) Mining taxes, royalties, forestry and fishery charges, and such other taxes, fees, or charges, including
related surcharges, interests, or fines, and from its share in any co-production, joint venture or production
sharing agreement in the utilization and development of the national wealth within their territorial
jurisdiction.
(2) Administrative charges enumerated herein accruing to the National Government whether collected by the
National
Government
collecting
agencies
or,
in
certain
cases,
by
LGUs.
(3) Proceeds from the development and utilization of national wealth where the LGU actually collects and
automatically retains its share of at least forty percent (40%) of such proceeds shall not form part of the
revenue
base
in
the
computation
of
the
forty
percent
(40%)
share.
ARTICLE 388. Share of the Local Government Units from Any Government-Owned or Controlled
Corporations. LGUs shall have a share based on the preceding fiscal year from the proceeds derived by any
NGA or GOCC engaged in the utilization and development of the national wealth based on the following
formula
whichever
will
produce
a
higher
share
for
the
LGU:
(a) One percent (1%) of the gross sales or receipts of the preceding calendar year; or
(b) Forty percent (40%) of the mining taxes, royalties, forestry and fishery charges and such other taxes, fees
or charges, including related surcharges, interests, or fines the NGA or GOCC would have paid if it were not
otherwise
exempt.
ARTICLE 389. Allocation of Shares. The share in the immediately preceding Article shall be distributed in
the
following
manner:
(a)

Where

Province
Component
Municipality
Barangay

the

natural

resources

are

Twenty
City
Forty-five
Thirty-five

located

in

percent

the

province:

(20%)
or

percent
percent

(45%);
(35%)

and

provided that where the natural resources are located in two (2) or more provinces, or in two (2) or more
component cities or municipalities or in two (2) or more barangays, their respective shares shall be computed
on
the
basis
of:
Population
Land

Area

Seventy

percent
Thirty

(70%);
percent

and
(30%).

(b) Where the natural resources are located in a highly-urbanized or independent component city:
City
Barangay

Sixty-five
percent
Thirty-five

(65%);
percent

and
(35%).

provided that where the natural resources are located in such two (2) or more cities, the allocation of shares
shall be based on the formula on population and land area as specified in paragraph (a) hereof.
ARTICLE 390. Computation and Remittance of the Shares of Local Government Units. The computation
and remittance of the shares of LGUs shall be in accordance with the following procedures:
(a) The computation of the forty percent (40%) share of each LGU in the proceeds from the development and
utilization of the national wealth from the preceding year, indicating the corresponding share of each province,
city, municipality, and barangay where the national wealth is being developed and/or utilized, shall be
submitted by the revenue collecting agencies to DBM not later than the fifteenth (15th) of March of each
ensuing
year.
(b) The allotment representing the share of each LGU shall be released without need of any further action,
directly to the provincial, city, municipal, or barangay treasurers, as the case may be, on a quarterly basis
within five (5) days after the end of each quarter, and which shall not be subject to any lien or holdback that
may
be
imposed
by
the
National
Government.
(c) Share of LGUs from the proceeds derived by any NGA or GOCC engaged in the utilization and
development of national wealth shall be directly remitted by such agency or corporation to the provincial, city,
municipal, or barangay treasurer concerned within five (5) days after the end of each quarter. Within three (3)
days from the date of remittance, the agency or corporation concerned shall furnish the Treasurer of the
Philippines
with
a
copy
of
the
remittance
advice.
ARTICLE 391. Development and Livelihood Projects. The proceeds from the share of LGUs referred to in
Article 386 of this Rule shall be appropriated by their respective sanggunian to finance local development and
livelihood projects provided that at least eighty percent (80%) of the proceeds derived from the development
and utilization of hydrothermal, geothermal, and other sources of energy shall be applied solely to lower the
cost
of
electricity
in
the
LGU
where
such
source
of
energy
is
located.
ARTICLE 392. Monitoring of Implementation. The DILG, in coordination with DOF and in actual
consultation with the leagues of LGUs, shall monitor the proper implementation of Part Two of this Rule.
RULE XXXIII
Local Government Credit Financing
ARTICLE 393. Scope. This Rule shall govern the power of LGUs to create indebtedness and to enter into
credit
and
other
financial
transactions.
ARTICLE 394. General Policy. (a) Any LGU may create indebtedness, and avail of credit facilities to
finance local infrastructure and other socio-economic development projects in accordance with the approved

local

development

plan

and

public

investment

program.

(b) An LGU may avail of credit lines from government or private banks and lending institutions for the
purpose
of
stabilizing
local
finances.
ARTICLE 395. Loans, Credits, and Other Forms of Indebtedness of Local Government Units. (a) An LGU
may contract loans, credits, and other forms of indebtedness with any government or domestic private bank
and other lending institutions to finance the construction, installation, improvement, expansion, operation, or
maintenance of public facilities, infrastructure facilities, housing projects, the acquisition of real property, and
the implementation of other capital investment projects, subject to such terms and conditions as may be agreed
upon by the LGU and the lender. The proceeds from such transactions shall accrue directly to the LGU
concerned.
(b) An LGU may secure from any government bank and lending institution short-, medium-, and long-term
loans and advances against security of real estate or other acceptable assets for the establishment,
development, or expansion of agricultural, industrial, commercial, housing financing, and livelihood projects,
and
other
economic
enterprises.
(c) Government financial and other lending institutions are authorized to grant LGUs such loans, credit lines,
advances, and other forms of indebtedness for projects and purposes referred in paragraph (b) hereof,
preferably at concessional interest rates lower than the prevailing rates as may be authorized by the governing
board
of
the
financial
or
lending
institution.
Prevailing rates shall mean the Central Bank standard reference rate for medium-and long-term loans.
(d) The authority of an LGU to incur loans, credits, or other forms of indebtedness shall be exercised through a
sanggunian resolution, which shall expressly authorize the governor, the city mayor, the municipal mayor, or
the punong barangay concerned to negotiate and enter into contract for purposes of securing the loan, credit,
or
indebtedness
applied
for.
ARTICLE 396. Deferred-Payment and Other Financial Schemes. Provinces, cities, and municipalities may
likewise acquire property, plant, machinery, equipment, and such necessary accessories under a supplier's
credit, deferred payment plan, or other financial schemes under the following conditions:
(a) That the acquisition of such equipment, machinery, and their accessories shall be governed by the pertinent
provisions of Rule XXXV of these Rules, whether such items are to be supplied or purchased from a local or
foreign
supplier;
and
(b) That the local chief executive, through a sanggunian resolution, is authorized to negotiate the contract
executed
under
the
deferred
payment
scheme.
ARTICLE 397. Bonds and Other Long-Term Securities. (a) Subject to the rules and regulations of the
Central Bank and the Securities and Exchange Commission, provinces, cities and municipalities are
authorized to issue bonds, debentures, securities, collaterals, notes, and other obligations to finance selfliquidating, income-producing development or livelihood projects pursuant to the priorities established in the
approved local development plan or public investment program. The sanggunian concerned shall, through an

ordinance approved by a majority of all its members, declare and state the terms and conditions of the bonds
and
the
purpose
for
which
the
proposed
indebtedness
is
to
be
incurred.
(b) In cases where the bond issue shall bear the guarantee of the National Government, the approval of the
Secretary
of
Finance
shall
be
required.
ARTICLE 398. Inter-Local Government Loans, Grants, and Subsidies. Provinces, cities, and municipalities
may, upon approval of a majority of all members of the sanggunian concerned and in amounts not exceeding
their surplus funds, extend loans, grants, or subsidies to other LGUs under such terms and conditions as may
be
agreed
upon
by
the
contracting
parties.
LGUs may, upon approval of their respective sanggunians, jointly or severally contract loans, credits, and
other
forms
of
indebtedness
for
purposes
mutually
beneficial
to
them.
ARTICLE 399. Loans from Funds Secured by the National Government from Foreign Sources. (a) The
President or his duly authorized representative may, through any government financial or other lending
institution or agency, relend to any province, city, municipality, or barangay, the proceeds of loans contracted
with foreign financial institutions or other international funding agencies for the purpose of financing the
construction, installation, improvement, expansion, operation, or maintenance of public and facilities,
infrastructure facilities, or housing projects, the acquisition of real property, and the implementation of other
capital investment projects, subject to such terms and conditions as may be agreed upon by the President and
the LGU concerned. The proceeds from such loans shall accrue directly to the said LGU.
(b) The President may likewise authorize the relending to LGUs of the proceeds of grants secured from foreign
sources, subject to the provisions of existing laws and applicable grant agreements.
(c) Repayment or amortization of loans, including accrued interest thereon, may be financed partly from the
income of the projects or services and from the regular income of the LGU, which must be provided for and
appropriated regularly in its annual budget until the loan and the interest thereon have been fully paid.
ARTICLE 400. Financing, Construction, Maintenance, Operation, and Management of Infrastructure
Projects by the Private Sector. (a) LGUs may enter into contracts with any duly prequalified individual
contractor, for the financing, construction, operation, and maintenance of any financially viable infrastructure
facilities, under the build-operate-and-transfer (B-O-T) agreement, subject to the applicable provisions of RA
6957 authorizing the financing, construction, operation, and maintenance of infrastructure projects by the
private sector and the rules and regulations issued thereunder and such terms and conditions provided in this
Article.
(b) LGUs shall include in their respective local development plans and public investment programs priority
projects that may be financed, constructed, operated and maintained by the private sector under this Article.
It shall be the duty of the LGU concerned to disclose to the public all projects eligible for financing, including
official notification of duly registered contractors and publication in newspapers of general or local circulation
and in conspicuous and accessible public places. Local projects under the B-O-T agreement shall be confirmed
by
the
LDC
concerned.
(c) Projects implemented under this Article shall be subject to the following terms and conditions:

(1) The provincial, city, or municipal engineer, as the case may be, upon formal request in writing by the local
chief executive, shall prepare the plans and specifications for the proposed project, which shall be submitted to
the
sanggunian
for
approval.
(2) Upon approval by the sanggunian of the project plans and specifications, the provincial, city, or municipal
engineer shall, as the case may be, cause to be published once every week for two (2) consecutive weeks in at
least one (1) local newspaper which is circulated in the region, province, city or municipality in which the
project is to be implemented, a notice inviting all duly qualified contractors to participate in a public bidding
for the projects so approved. The conduct of public bidding and award of contracts for local government
projects in this Article shall be in accordance with the Code and other applicable laws, rules and regulations.
In the case of a B-O-T agreement, the contract shall be awarded to the lowest complying bidder whose offer is
deemed most advantageous to the LGU and based on the present value of its proposed tolls, fees, rentals, and
charges over a fixed term for the facility to be constructed, operated, and maintained according to the
prescribed minimum design and performance standards, plans, and specifications. For this purpose, the
winning contractor shall be automatically granted by the LGU concerned the franchise to operate and
maintain the facility, including the collection of tolls, fees, rentals, and charges in accordance with paragraph
(c)(4)
hereof.
In the case of a B-O-T agreement, the contract shall be awarded to the lowest complying bidder based on the
present value of its proposed schedule of amortization payments for the facility to be constructed according to
the prescribed minimum design and performance standards, plans, and specifications.
(3) Any contractor who shall undertake the prosecution of any project in this Article shall post the required
bonds to protect the interest of the province, city, or municipality, in such amounts as may be fixed by the
sanggunian concerned and the provincial, city, or municipal engineer shall, as the case may be, not allow any
contractor to initiate the prosecution of projects in this Article unless such contractor presents proof or
evidence
that
he
has
posted
the
required
bond.
(4) The contractor shall be entitled to a reasonable return of his investment in accordance with his bid
proposal
as
accepted
by
the
LGU
concerned.
In the case of a B-O-T agreement, the repayment shall be made by authorizing the contractor to charge and
collect reasonable tolls, fees, rentals, and charges for the use of the project facility not exceeding those
proposed in the bid and incorporated in the contract provided that the LGU concerned shall, based on
reasonableness and equity, approve the tolls, fees, rentals, and charges provided, further, that the imposition
and collection of tolls, fees, rentals, and charges shall be for a fixed period as proposed in the bid and
incorporated in the contract which shall in no case exceed fifty (50) years and provided, finally, that during the
lifetime of the contract, the contractor shall undertake the necessary maintenance and repair of the facility in
accordance with standards prescribed in the bidding documents and in the contract.
In the case of a B-O-T agreement, the repayment shall be made through amortization payments in accordance
with
the
schedule
proposed
in
the
bid
and
incorporated
in
the
contract.
In case of land reclamation or construction of industrial estates, the repayment plan may consist of the grant of

portion

or

percentage

of

the

reclaimed

land

or

the

industrial

estate

constructed.

(5) Every infrastructure project undertaken in this Article shall be constructed, operated, and maintained by
the contractor under the technical supervision of the LGU and in accordance with the plans, specifications,
standards,
and
costs
approved
by
it.
(d) The provincial, city or municipal legal officer shall, as the case may be, review the contracts executed
pursuant to this Article to determine their legality, validity, enforceability, and correctness of form.
(e) The pertinent Rules and Regulations Implementing RA 6957 shall form part of this Rule (Annex D).
ARTICLE 401. Remedies and Sanctions. LGUs shall appropriate in their respective annual budgets such
amount as are sufficient to pay the loans and other indebtedness incurred or redeem or retire bonds,
debentures, securities, notes, and other obligations issued pursuant to this Rule provided that failure to
provide the appropriations herein required shall render their annual budgets inoperative.
Any LGU, through its local chief executive and upon authorization by the sanggunian concerned, may
authorize the National Government to deduct or withhold a portion of its IRA share for the payment of its
contractual obligation, subject to the limitations in Article 419(b) of Rule XXXIV of these Rules. For this
purpose, the resolution of the sanggunian shall clearly state the name of the creditor, the nature of the
indebtedness, the amount to be withheld, and a period of time that such withholding of IRA shares shall be
made.
ARTICLE 402. Prohibited Acts Related to the Awards of Contract. It shall be unlawful for any public
official or employee in the province, city or municipality, or their relatives within the fourth civil degree of
consanguinity or affinity, to enter into or have any pecuniary interest in any contract for the construction,
acquisition, operation, or maintenance of any project awarded pursuant to the provisions of this Rule, or for
the procurement of any supplies, materials, or equipment of any kind to be used in the said project. Any
person convicted for violation of the provisions of this Rule shall be removed from office and shall be punished
with imprisonment of not less than one (1) month but not more than two (2) years, at the discretion of the
court,
without
prejudice
to
prosecution
under
other
laws.
ARTICLE 403. Technical Assistance. The DOF may provide technical assistance to any LGU in the
availment of credit facilities, flotation of bonds, contracting of loans, and other indebtedness and shall issue
such guidelines as may be necessary for the purpose.
RULE XXXIV
Local Government Budgeting
ARTICLE 404. Scope. This Rule shall cover the budgeting operations of provinces, cities, municipalities,
and
barangays.
ARTICLE 405. Fundamental Principles. The following fundamental principles shall govern local
government
budgeting:
(a) National planning shall be based on local planning to ensure that the needs and aspirations of the people as
well as those of the LGUs shall be considered in the formulation of budgets of NGAs;

(b) Local budget plans and goals shall, as far as practicable, be harmonized with national development goals
and strategies in order to optimize the utilization of resources and to avoid duplication in the use of fiscal and
physical
resources;
(c) LGUs shall formulate sound financial plans, and local budgets shall be based on functions, activities, and
projects,
in
terms
of
expected
results;
(d) LGUs shall ensure that their respective budgets incorporate the requirements of their component LGUs
and
provide
for
equitable
allocation
of
resources
among
these
LGUs;
(e)

Local

government

budgets

shall

operationalize

approved

local

development

plans;

(f) No money shall be paid out of the local treasury except in pursuance of an appropriations ordinance or law;
(g)

LGUs

shall

endeavor

(h)

Local

government

to

have

funds

and

balanced

monies

budget

shall

be

in
spent

each

fiscal

solely

for

year of

operation;

public

purposes;

(i) Trust funds in the local treasury shall not be paid out except in fulfillment of the purpose for which the trust
was
created
or
the
funds
received;
(j) Fiscal responsibility shall be shared by all those exercising authority over financial affairs, transactions, and
operations
of
LGUs;
(k) Local revenue is generated only from sources expressly authorized by law or ordinance, and collection
thereof
shall
at
all
times
be
acknowledged
properly;
(l) All monies officially received by a local government officer in any capacity or on any occasion shall be
accounted
for
as
local
funds,
unless
otherwise
provided
by
law;
and
(m) Every officer of LGU whose duties permit or require the possession or custody of local funds shall be
properly bonded, and such officer shall be accountable and responsible for said funds and for the safekeeping
thereof
in
conformity
with
the
provisions
of
law.
ARTICLE 406. Definition of Terms. (a) Annual Budget refers to a financial plan embodying the estimates of
income
and
expenditures
for
one
(1)
fiscal
year;
(b) Appropriation refers to an authorization made by the ordinance directing the payment of goods and
services from local government funds under specified conditions or for specific purposes;
(c) Budget Document refers to the instruments used by the local chief executive to present a comprehensive
financial
plan
to
the
sanggunian
concerned;
(d) Capital Outlay refers to appropriation for the purchase of goods and services, the benefits of which extend

beyond the fiscal year and which add to the assets of the LGU concerned, including investments in public
utilities
such
as
public
markets
and
slaughterhouses;
(e) Continuing Appropriation refers to an appropriation available to support obligation for a specified purpose
or project, such as those for the construction of physical structures or for the acquisition of real property or
equipment,
even
when
these
obligations
are
incurred
beyond
the
budget
year;
(f) Current Operating Expenditures refer to appropriations for the purchase of goods and services for the
conduct of normal local government operations within the fiscal year, including goods and services that will be
used
or
consumed
during
the
budget
year;
(g) Expected Results refer to services, products, or benefits that will accrue to the public, estimated in terms of
performance,
measures,
or
physical
targets;
(h) Fund refers to a sum of money or other assets convertible to cash, set aside for the
purpose of carrying out specific activities or attaining certain objectives in accordance with special regulations,
restrictions, or limitations and constitutes an independent fiscal and accounting entity;
(i) Income refers to all revenues and receipts collected or received forming the gross accretions of funds of the
LGU;
(j) Obligations refer to an amount committed to be paid by the LGU for any lawful act made by an
accountable
officer
for
and
in
behalf
of
the
LGU
concerned;
(k) Personal Services refer to appropriations for the payment of salaries, wages, and other compensation of
temporary,
contractual,
and
casual
employees
of
the
LGU;
(l) Receipts refer to income realized from the operations and activities of the LGU or are received by the LGU
in the exercise of its corporate functions, consisting of charges for services rendered, conveniences furnished,
or the price of a commodity sold, as well as loans, contributions or aids from other entities, except provisional
advances
for
budgetary
purposes;
(m) Revenues refer to income derived from the regular system of taxation enforced under the authority of law
or
ordinance
and
as
such,
accrue
more
or
less
regularly
every
year.
ARTICLE 407. Composition. Local government budgets shall primarily consist of two (2) parts:
(a)

The

estimates

of

income;

and

(b) The total appropriations covering the current operating expenditures and capital outlays.
ARTICLE

408.

Form

and

Content.

The

budget

document

shall

contain:

(a) A budget message of the local chief executive setting forth in brief the significance of the executive budget,
particularly
in
relation
to
the
approved
local
development
plan;

(b) A brief summary of the functions, projects, and activities to be accomplished in pursuit of the goals and
objectives of the LGU for the ensuing fiscal year, specifically the delivery of basic services or facilities
enumerated
in
Rule
V
of
these
Rules.
(c)
(1)

Summary
The

actual

of
income

financial
and

expenditures

statements
during

the

setting
immediately

forth:
preceding

year;

(2) The actual income and expenditure of the first two (2) quarters and the estimates of income and
expenditure
for
the
last
two
(2)
quarters
of
the
current
fiscal
year;
(3) The estimates of income for the ensuing fiscal year from ordinances and laws existing at the time the
proposed
budget
is
transmitted,
together
with
other
revenue-raising
proposals;
(4) The estimated expenditures necessary to carry out the functions, projects, and activities of the LGU for the
ensuing
fiscal
year;
(5) All essential facts regarding the bonded and other long-term obligations and indebtedness of the LGU, if
any;
(6)

Summary

statement

of

all

statutory

and

contractual

obligations

due;

and

(7) Such other financial statements and data as are deemed necessary or desirable in order to disclose in all
practicable
detail
the
financial
condition
of
the
LGU.
ARTICLE 409. Internal Revenue Allotment and Shares in the Utilization of National Wealth. For purposes
of budget preparation, DBM and other appropriate NGAs and GOCCs concerned, shall provide LGUs, not
later than the fifteenth (15th) day of June of each year, information as to their allocation of, and shares from,
the utilization and development of national wealth, if any, for the budget year.
ARTICLE 410. Submission of Local Development Plan. LDCs shall submit to the local finance committee a
copy of the local development plan and annual investment program prepared and approved during the fiscal
year before the calendar for budget preparation in accordance with applicable laws, specifying therein projects
proposed for inclusion in the local government budget as well as in the budgets of NGAs or GOCCs concerned.
The local finance committee shall use the plan to ensure that projects proposed for local funding are included
in
the
budget.
NGAs and GOCCs shall provide LGUs all necessary information on projects already funded in their
respective budgets. Such information shall include specifically, among other things: name of project, location,
sources, and levels of funding for said projects. The same information must be made available to the local
finance committee concerned within the first quarter of the year to avoid duplications in funding project
proposals.
ARTICLE 411. Submission of Detailed Statements of Income and Expenditures. On or before the fifteenth

(15th) day of July of each year, local treasurers shall submit to their respective local chief executives a certified
statement, covering the income and expenditures of the preceding fiscal year, the actual income and
expenditures of the first two (2) quarters of the current year and the estimated income and expenditures for
the
last
two
(2)
quarters
of
the
current
year.
All statements of income and expenditures referred to in this Article, shall be jointly certified by the local
treasurer
and
the
local
accountant.
ARTICLE 412. Local Finance Committee. There shall be created in every province, city, or municipality a
local finance committee to be composed of the local planning and development coordinator, the local budget
officer,
and
the
local
treasurer.
The
committee
shall:
(a) Determine the income reasonably

projected

as

collectible

for the ensuing fiscal

year;

(b) Recommend appropriate tax and other revenue measures or borrowing which may be required to support
the
budget;
(c) Recommend to the local chief executive concerned the level of annual expenditures and ceilings of spending
for economic, social, and general services based on the approved local development plans;
(d) Recommend to the local chief executive concerned the proper allocation of expenditures for each
development
activity
between
current
operating
expenditures
and
capital
outlays;
(e) Recommend to the local chief executive concerned the amount to be allocated for capital outlay under each
development
activity
or
infrastructure
project;
(f) Assist the sangguniang panlalawigan in the review and evaluation of the budget of component cities and
municipalities in the case of the provincial finance committee, the barangay budgets in the case of the city or
the
municipal
finance
committee,
and
recommend
appropriate
action
thereon;
(g) Assist the sanggunian concerned in the analysis and review of annual regular and supplemental budgets of
the respective LGUs to determine compliance with statutory and administrative requirements; and
(h) Conduct semi-annual review and general examination of costs and accomplishments against performance
standards applied in undertaking development projects, and prepare a report thereon. A copy of the report
shall be furnished the local chief executive and the sanggunian concerned, and shall be posted in conspicuous
and publicly accessible places in the provinces, cities, municipalities, and barangays.
ARTICLE 413. Submission of Budget Proposals by Heads of Offices or Departments. (a) Each head of
office or department shall submit a budget proposal for his office or department to the local chief executive on
or
before
the
fifteenth
(15th)
day
of
July
of
each
year.
The budget proposal of each office or department shall be categorized under either economic, social, or general
services. Each service shall be covered by the budget of at least one (1) office or department of the LGU.
(b) The basic services and facilities shall be funded from the share of LGUs in the proceeds of national taxes

and other local revenues, and funding support from the National Government, its instrumentalities and
GOCCs which are tasked by law to establish and maintain such services or facilities. Any fund or resource
available for the use of LGUs shall first be allocated for the provision of basic services or facilities enumerated
in Rule V of these Rules before applying the same for other purposes, unless otherwise provided in these Rules.
(c) The budget proposal shall be prepared in accordance with such policy and program guidelines as the local
chief executive may issue in conformity with the local development plan, the budgetary ceilings prescribed by
the local finance committee, and the budgetary requirements and limitations prescribed under this Rule.
(d) The budget proposal of offices or departments shall be divided into two (2) parts:
(1)

Current

Operating

(2)
(e)

Expenditures;

Capital
The

budget

proposal

and

Outlays.
shall

contain

the

following

information:

(1) Objectives, functions, and projects showing the general character and relative importance of the work to be
accomplished
or
the
services
to
be
rendered,
and
the
costs
thereof;
(2) Organizational charts and staffing patterns indicating the list of plantilla positions with their
corresponding salaries, and proposals for reclassification of positions and salary changes, as well as the
creation of new positions with their proposed salary grade, duly supported by proper justification;
(3) Brief description of the functions, projects, and activities for the ensuing fiscal year, expected results for
each function, project, and activity, and the nature of work to be performed, including the objects of
expenditure
for
each
function,
project,
and
activity;
(4)

Relation

of

the

work

and

financial

proposals

to

approved

local

development

plans;

(5) Estimated current operating expenditures and capital outlays with comparative date for the last two (2)
preceding
fiscal
years,
and
current
and
ensuing
fiscal
years;
and
(6) Accomplishment reports

for the last two (2) preceding and the current fiscal years.

(f) The budget proposal of the sanggunian shall be submitted in the same manner and within the same period
as
those
of
the
other
offices
or
departments
in
the
LGU.
ARTICLE 414. Preparation of Executive Budget. Upon receipt of the statement of incomes and
expenditures from the local treasurer, the budget proposals of the heads of offices or departments, and the
estimates of income and budgetary ceilings from the local finance committee, the local chief executive shall
prepare
the
executive
budget
for
the
ensuing
fiscal
year.
The local chief executive shall submit the executive budget to the sanggunian concerned not later than the
sixteenth (16th) day of October of the current fiscal year. If the local chief executive fails to submit the budget

within the prescribed date, he shall be subject to such criminal and administrative penalties as provided under
these
Rules
and
other
applicable
laws.
ARTICLE 415. Budget Authorization. (a) Legislative Authorization of the Budget On or before the end
of the current fiscal year, the sanggunian concerned shall enact, through an ordinance, the annual budget of
the LGU for the ensuing fiscal year on the basis of the estimates of income and expenditures submitted by the
local
chief
executive.
In case the sanggunian concerned fails to pass the ordinance authorizing the annual appropriations at the
beginning of the ensuing fiscal year, the ordinance authorizing the appropriations of the preceding year shall
be deemed reenacted. The sanggunian shall continue to hold sessions without additional remuneration for its
members until the ordinance authorizing the annual appropriations is approved, and no other business may be
taken up during such sessions. If the sanggunian still fails to enact such ordinance after ninety (90) days from
the beginning of the fiscal year, the reenacted budget shall remain in force and effect until such time that the
ordinance authorizing the annual appropriations is approved by the sanggunian concerned. Only the annual
appropriations for salaries and wages of existing positions, statutory and contractual obligations, and essential
operating expenses authorized in the annual and supplemental budgets for the preceding year shall be deemed
reenacted
and
disbursement
of
funds
shall
be
in
accordance
therewith.
In the implementation of the reenacted budget, the local treasurer concerned shall exclude from estimates of
income for the preceding year those realized from non-recurring sources, like national aids, proceeds from
loans, sale of assets, prior year adjustments, and other analogous sources of income. National aids shall not
include the IRA of LGUs and their shares in the utilization and development of national wealth.
No ordinance authorizing supplemental appropriations shall be passed in place of annual appropriations.
In case the revised income estimates be less than the aggregate reenacted appropriations, the local treasurer
concerned shall accordingly advise the sanggunian concerned which shall, within ten (10) days from receipt of
such advice, make necessary adjustments or reductions. The revised appropriations authorized by the
sanggunian
concerned
shall
then
be
the
basis
for
disbursements.
The local sanggunian may not increase the proposed amount in the executive budget nor include new items
except to provide for statutory and contractual obligations but in no case shall it exceed the total
appropriations
in
the
executive
budget.
(b) Veto Power of the Local Chief Executive The local chief executive may veto any ordinance of the
sangguniang panlalawigan, sangguniang panlungsod, or sangguniang bayan on the ground that it is ultra vires
or prejudicial
to the public
welfare, stating his
reasons
therefore in
writing.
The local chief executive, except the punong barangay, shall exercise the power to veto any particular item or
items of an appropriations ordinance, or an ordinance or resolution adopting a local development plan and
public investment program, or an ordinance directing the payment of money or creating liability. In such
cases, the veto shall not affect the item or items which are not objected to. The vetoed item or items shall not
take effect unless the sanggunian overrides the veto in the manner provided in Rule XVII of these Rules;
otherwise, the item or items in the appropriations ordinance of the previous year corresponding to those
vetoed,
if
any,
shall
be
deemed
reenacted.

ARTICLE 416. Effectivity of Budgets. (a) The ordinance enacting the annual budget shall take effect at the
beginning
of
the
ensuing
calendar
year.
(b) Supplemental budget shall take effect upon its approval or on the date fixed in the ordinance.
The local chief executive shall be primarily responsible for the execution and accountability for the annual and
supplemental
budgets.
ARTICLE 417. Changes in the Annual Budget. Changes in the annual budget may be done through
supplemental
budgets.
No ordinance providing for a supplemental budget shall be enacted except for the following:
(a) When supported by funds actually available as certified by the local treasurer; or by new revenue sources;
Funds actually available refers to the amount of money actually collected as certified by the local treasurer
during a given fiscal year which is over and above the realized estimated income of that year. An appropriation
ordinance providing for the supplemental budget sourced out of funds actually available shall be enacted only
once
during
the
fiscal
year.
(b) In times of public calamity by way of budgetary realignment to set aside appropriations for the purchase of
supplies and materials or the payment of services which are exceptionally urgent or absolutely indispensable to
prevent imminent danger to, or loss of, life or property, in the jurisdiction of the LGU or in other areas
declared in a state of calamity by the President. Such ordinance shall clearly indicate the sources of funds
available for appropriations, as certified under oath jointly by the local treasurer and the local accountant and
attested by the local chief executive, and the various items of appropriations affected, and the reasons for the
change.
ARTICLE 418. Reversion of Unexpanded Balances of Appropriations; Continuing Appropriations. (a)
Unexpected balances of appropriations authorized in the appropriations ordinance shall revert to the balance
at the end of the fiscal year and shall not thereafter be available for expenditure except by subsequent
enactment. Appropriations for capital outlays shall continue and remain valid until fully spent or the project is
completed.
(b) Reversions of continuing appropriations shall not be allowed unless obligations therefore have been fully
paid or otherwise settled. Balances of continuing appropriations shall be reviewed as part of the annual budget
preparation. The sanggunian concerned may approve, upon recommendation of the local chief executive, the
reversion of funds no longer needed in connection with the activities funded by said continuing appropriations.
Continuing appropriations refer to appropriations available to support obligations for a specified purpose or
project,
even
when
these
obligations
are
beyond
the
budget
year.
ARTICLE 419. Budgetary Requirements. The budgets of LGUs for any fiscal year shall comply with the
following
requirements:

(a)

The

aggregate

amount

appropriated

shall

not

exceed

the

estimates

of

income;

(b) Full provision shall be made for all statutory and contractual obligations of the LGU concerned provided
that the amount of appropriations for debt servicing shall not exceed twenty percent (20%) of the regular
income
of
the
LGU
concerned.
Regular income refers to the estimates of regular income for the budget year as determined by the local
finance
committee.
(c) In the case of provinces, cities, and municipalities, aid to barangays shall be provided in amounts of not less
than
One
thousand
Pesos
(P1,000.00)
per
barangay;
and
(d) Five percent (5%) of the estimated revenue from regular sources shall be set aside as an annual lump sum
appropriation for unforeseen expenditures arising from the occurrence of calamities provided that such
appropriation shall be used only in the area or a portion thereof of the LGU, or other areas declared in a state
of
calamity
by
the
President.
ARTICLE 420. General Limitations. (a) The total appropriations, whether annual or supplemental, for
personal services of an LGU for one (1) fiscal year shall not exceed forty-five percent (45%) in the case of first
to third class provinces, cities, and municipalities, and fifty-five percent (55%) in the case of fourth or lower
class provinces, cities, and municipalities, of the total annual income from regular sources realized in the next
preceding fiscal year. The appropriations for salaries, wages, representation and transportation allowances of
officials and employees of public utilities and economic enterprises owned, operated, and maintained by the
LGU concerned shall not be included in the annual budget and in the computation of the maximum amount
for personal services. The appropriations for personal services of such economic enterprises shall be charged
to their respective budgets. The limitations prescribed herein shall apply only after the LGU shall have
complied with the implementation of RA 6758 or Salary Standardization Law for existing and mandatory
positions.
(b) No official or employee shall be entitled to a salary rate higher than the maximum fixed for his position or
other positions of equivalent rank by applicable laws, rules and regulations issued thereunder;
(c) No local fund shall be appropriated to increase or adjust salaries or wages of officials and employees of the
National
Government,
except
as
may
be
expressly
authorized
by
law;
(d) In cases of abolition of positions and creation of new ones resulting from the abolition of existing positions
in the career service, such abolition or creation shall be made in accordance with pertinent provisions of these
Rules
and
civil
service
law,
rules
and
regulations;
(e) Positions in the official plantilla for career positions which are occupied by incumbents holding permanent
appointments
shall
be
covered
by
adequate
appropriations;
(f) No changes in designation or nomenclature of positions resulting in a promotion or demotion in rank or
increase or decrease in compensation shall be allowed, except when the position is actually vacant, and the
filing of such positions shall be strictly made in accordance with civil service law, rules and regulations;

(g) The creation of new positions and salary increases or adjustments shall in no case be made retroactive; and
(h) The annual appropriations for discretionary purposes of the local chief executive shall not exceed two
percent (2%) of the actual receipts derived from basic real property tax in the next preceding calendar year.
Discretionary funds shall be disbursed only for public purposes to be supported by appropriate vouchers and
subject to such guidelines as may be prescribed by law. No amount shall be appropriated for the same purpose
except
as
authorized
in
this
Article.
ARTICLE 421. Review of Appropriations Ordinances of Provinces, Highly-Urbanized Cities and Independent
Component Cities, and Municipalities within the Metropolitan Manila Area. DBM shall review ordinances
authorizing the annual or supplemental appropriations of provinces, highly-urbanized cities, independent
component cities, and municipalities within MMA in accordance with the immediately succeeding Article.
ARTICLE 422. Review of Appropriations Ordinances of Component Cities and Municipalities. (a) The
Sangguniang Panlalawigan shall review the ordinances authorizing annual or supplemental appropriations of
component cities and municipalities in the same manner and within the same period prescribed for the review
of
other
ordinances.
(b) If within ninety (90) days from receipt of copies of appropriations ordinances of component cities and
municipalities, the sangguniang panlalawigan takes no action thereon, the same shall be deemed to have been
reviewed in accordance with law and shall continue to be in full force and effect. If within the same period, the
sangguniang panlalawigan shall have ascertained that the ordinance authorizing annual or supplemental
appropriations has not complied with the budgetary requirements and limitations provided in this Rule, the
sangguniang panlalawigan shall, within the ninety-day period herein prescribed, declare such ordinance
inoperative in its entirety or in part. Items of appropriation contrary to limitations prescribed in this Rule or
in excess of the amounts prescribed herein shall be disallowed or reduced accordingly.
The sangguniang panlalawigan shall, within the same period advise the sangguniang panlungsod or
Sangguniang bayan concerned through the local chief executive, of any action on the ordinance under review.
Upon receipt of such advice, the city or municipal treasurer concerned shall not make further disbursements of
funds from any of the items of appropriation declared inoperative, disallowed, or reduced.
(c) Appropriations for ordinary administrative purposes not duly obligated shall terminate with the fiscal year
and all unexpended balances thereof shall be automatically reverted on the thirty-first (31st) day of December
of
each
year
to
the
general
fund
of
LGU.
ARTICLE 423. Preparation of Barangay Budgets. (a) Unless otherwise provided in this Rule, all the income
of the barangay from whatever source shall accrue to its general fund and shall, at the option of the barangay
concerned, be kept as trust fund in the custody of the city or municipal treasurer or be deposited in a bank,
preferably government-owned, situated in or nearest to its area of jurisdiction. Such funds shall be disbursed
in
accordance
with
the
provisions
of
this
Rule.
Ten percent (10%) of the general fund of the barangay shall be set aside for the sangguniang kabataan. The
said ten percent (10%) share shall be appropriated and administered by the sangguniang kabataan and shall
be spent for the purposes provided in Rule XXVII of these Rules except for personal services.

(b) On or before the fifth (5th) day of September each year, the city or municipal treasurer, jointly with the city
or municipal accountant, shall issue a certified statement covering the actual income of the past year and
estimates of income of the current and ensuing fiscal years from local sources for the barangay concerned.
Based on such certified statements, the barangay treasurer shall submit, on or before the fifteenth (15th) day
of September of each year, to the punong barangay a statement covering the estimates of income and
expenditures
for
the
past,
current,
and
ensuing
fiscal
years.
(c) Upon receipt of the statement of income and expenditures from the barangay treasurer, the punong
barangay shall prepare the barangay budget for the ensuing fiscal year in the manner and within the period
prescribed in this Rule and submit the annual barangay budget to the sangguniang barangay for enactment.
(d) The total annual appropriations of a barangay for personal services, inclusive of benefits provided under
applicable laws for one (1) fiscal year, shall not exceed fifty-five percent (55%) of the total annual income
actually
realized
from
local
sources
during
the
next
preceding
fiscal
year.
(e) The barangay budget including changes therein shall be subject to the same budgetary requirements and
limitations
applicable
to
other
local
government
budgets.
(f) The barangay ordinance enacting the annual budget shall take effect at the beginning of the ensuing
calendar year. An ordinance enacting a supplemental budget shall take effect upon its approval or on the date
fixed
therein.
(g) The punong barangay shall be primarily responsible for the execution of and the accountability for the
annual
and
supplemental
budgets
of
the
barangay.
ARTICLE 424. Review of Barangay Budgets. (a) Within ten (10) days from its approval, copies of the
barangay ordinance authorizing the annual appropriations shall be furnished the sangguniang panlungsod or
the sangguniang bayan, through the city or municipal budget officer, as the case may be.
(b) The sanggunian concerned shall review the barangay ordinance to ensure compliance thereof with all the
budgetary
requirements
and
limitations
provided
in
this
Rule.
(c) If within sixty (60) days after receipt of the barangay ordinance the sanggunian concerned takes no action
thereon, said ordinance shall continue to be in full force and effect. If within the same period the sanggunian
concerned shall have ascertained that the subject ordinance contains appropriations in excess of the estimates
of income duly certified as collectible, or that the same has not complied with the established budgetary
requirement, said ordinance shall be declared inoperative in its entirety or in part. Items of appropriations
contrary to or in excess of any of the general limitations or the maximum amount prescribed in this Rule shall
be
disallowed
or
reduced
accordingly.
(d) Within the established reglementary period, the sangguniang panlungsod or sangguniang bayan concerned
shall return the barangay ordinance, through the city or municipal budget officer, to the punong barangay
with the advice of action thereon in the form of a resolution or letter of review, as may be prescribed by the
sanggunian concerned, for proper and appropriate adjustments and corrections; in which case, the barangay
shall operate on the ordinance authorizing annual appropriations of the preceding fiscal year until such time

that the new ordinance authorizing annual appropriations for the year in question shall have met the
objections
and
disallowances
raised
by
the
reviewing
sanggunian.
Upon receipt of the review action on the budget, the barangay treasurer or the city or municipal treasurer who
has custody of the barangay funds shall not make further disbursements from any items of appropriation
declared
inoperative,
disallowed,
or
reduced.
ARTICLE 425. Barangay Financial Procedures. (a) The barangay treasurer shall collect taxes, fees, and
other charges due and contributions accruing to the barangay. Official Receipts shall be issued for all such
collections.
(b) When deputized by the provincial or city or municipal treasurer, the barangay treasurer shall collect real
property taxes and all other taxes as may be imposed by the province, city, or municipality, as the case may be,
due
the
barangay.
(c) Within five (5) days after receipt of collections, the barangay treasurer shall deposit all collections with the
city, or municipal treasurer, or in the depository account maintained in the name of the barangay.
(d)

The

barangay

treasurer

may

be

authorized

by

the

sangguniang

barangay

to:

(1) Hold petty cash that shall not exceed twenty percent (20%) of the funds available and to the credit of the
barangay
treasury;
and
(2) Make direct purchases amounting to not more than One Thousand Pesos (P1,000.00) at any time for the
ordinary
and
essential
needs
of
the
barangay.
(e) The financial records of the barangay such as books of accounts, ledgers, statements of income and
expenditures, balance sheets, trial balances, and other documents shall be kept in the office of the city or
municipal accountant in a simplified manner as may be prescribed by COA. The representatives of COA shall
audit the accounts and financial records of the barangay annually, or as often as may be necessary, and shall
submit an audit report thereon to the sangguniang panlungsod or sangguniang bayan, as the case may be.
The COA shall prescribe simplified procedures for barangay finances within six (6) months after approval of
these
Rules.
ARTICLE 426. Responsibility of the Department of Budget and Management and the Commission of Audit.
(a) The DBM, jointly with COA shall, within one (1) year from the effectivity of these Rules, promulgate a
Budget Operations Manual for LGUs to improve and systematize methods, techniques, and procedures in local
government
budget
preparation,
authorization,
execution,
and
accountability.
(b) The DBM shall promulgate such administrative issuances as may be needed from time to time relative to
the
implementation
of
the
provisions
of
this
Rule.
(c) The DBM shall, upon request of LGUs, extend technical assistance on local government budgeting.
RULE XXXV

Local Government Supply and Property Management

ARTICLE 427. Scope. This Rule shall govern the procurement, care, utilization, custody, and disposal of
supplies
and
the
other
aspects
of
supply
management
in
an
LGU.
This Rule shall not cover direct purchase made by the barangay treasurer that may be authorized by the
sangguniang
barangay
pursuant
to
Article
101,
Rule
XVII
of
these
Rules.
ARTICLE 428. Definition of terms. (a) Lowest Complying and Responsible Bid refers to the proposal of one
who offers the lowest price and meets all the technical specifications and requirements of the supplies desired,
and as a dealer in the line of supplies involved, maintains a regular establishment, and has complied
consistently
with
previous
commitments;
(b) Suitable Substitute refers to that kind of article which would serve substantially the same purpose or
produce substantially the same results as the brand, type, or make of article originally designed or
requisitioned;
(c) Supplies include everything, except real property, which may be needed in the transaction of public
business or in the pursuit of any undertaking, project, or activity, whether in the nature of equipment,
furniture, stationary materials for construction or personal property of any sort, including non-personal or
contractual services such as the repair and maintenance of equipment and furniture, as well as trucking,
hauling,
janitorial,
security,
and
related
services;
and
(d) Terms and Conditions refer to other requirements not affecting the technical specifications and
requirements of the required supplies desired such as bonding, terms of delivery and payment, and related
preferences.
ARTICLE 429. General Rule in Procurement or Disposal. Except as otherwise provided in this Rule,
acquisition of supplies by LGUs shall be through competitive public bidding. Supplies which have become
unserviceable or are no longer needed shall be sold, whenever applicable, at public auction, subject to
applicable
rules
and
regulations.
The governor or city mayor, through the provincial or city general services officer, respectively, and the
municipal mayor or punong barangay, through the municipal or barangay treasurer, shall provide for the
efficient
and
effective
property
management
in
an
LGU.
ARTICLE 430. Procurement Organization. The office of the provincial or city general services officer shall
exercise the function of acquiring all necessary supplies for the province and the city, respectively. The
municipal treasurer and the barangay treasurer shall exercise the same function for the municipality and
barangay,
respectively.
ARTICLE 431. Annual Procurement Program. (a) On or before the fifteenth (15th) day of July each year,
the local chief executive shall prepare an annual procurement program for the ensuing fiscal year which shall
contain an itemized quantity of supplies needed for the entire fiscal year, complete descriptions thereof as to
kind, quantity and quality, estimated cost, and the balance on hand. The total estimated cost of the approved
annual procurement program shall not exceed the total appropriations authorized for the acquisition of

supplies.
LGUs may augment the supplies and equipment provided by the Supreme Court to the lower courts located in
their
respective
jurisdictions.
(b) Except in emergency cases or where urgent indispensable needs could not have been reasonably
anticipated, no purchase of supplies or property shall be made unless included in, or covered by, the approved
procurement
program.
(c) The conversion of excess cash into supplies or stock is prohibited except to the extent of the kind and
quantity
specified
in
the
approved
annual
procurement
plan.
(d) A violation of this Article shall be a ground for suspension or dismissal of any official or employee
responsible
therefore.
ARTICLE 432. Requisition Procedures. (a) Requirement of Requisition Any order for supplies shall be
filled by the provincial general services officer, the city general services officer, the municipal treasurer or
barangay treasurer, as the case may be, for any office or department of LGU concerned only upon written
requisition
as
hereinafter
provided.
(b) Preparation of Requisition Requisition shall be prepared by the head of office or department, or the
punong barangay for the barangay, needing the supplies, who shall certify as to their necessity for official use
and shall specify the project or activity where the supplies or property are to be used.
(c) Certification on Existence of Appropriations Every requisition must be accompanied by a request for
obligation and allotment showing the certification of the local budget officer, the local accountant, and the local
treasurer that an appropriation therefore exists; that the estimated amount of such expenditure has been
obligated;
and
that
funds
are
available
for
the
purpose,
respectively.
In case of the barangays, every requisition must be accompanied by a request for obligation and allotment
showing the certifications of: the chairman of the committee on appropriations or its equivalent of the
sangguniang barangay that an appropriation exists; the city or municipal accountant that the amount has been
obligated; and the barangay treasurer that funds are available for the purpose.
(d) Forms to be Used Requisitions shall be accomplished using the following forms:
(1)

Requisition

(2)

Purchase

and

Issue

Request

Voucher
(PR)

(RIV)
for

for
supplies

supplies
not

carried
carried

in

stock;
in

and

stock.

(c) Approval of Requisitions Approval of requisition by the head of the office or department concerned who
has administrative control of the appropriation against which the proposed expenditure is chargeable is
deemed sufficient, except in case of requisition for supplies to be carried in stock which shall be approved by
the local chief executive concerned provided that such supplies are listed or included in the annual
procurement plan and the maximum quantity thereof does not exceed the estimated consumption
corresponding to a programmed three-month period and provided further that nothing herein contained shall

be construed as authorizing the purchase of furniture and equipment for stock purposes.
The

punong

barangay

shall

approve

all

requisitions

of

the

barangay.

ARTICLE 433. Call for Bids. When procurement is to be made by LGUs, the provincial general services
officer or city general services officer, or the municipal treasurer, or barangay treasurer shall call bids for open
public competition. The call for bids shall show the complete specifications and technical descriptions of the
required supplies and shall embody all terms and conditions of participation and award, terms of delivery and
payment, and all other covenants affecting the transaction. In all calls for bids, the right to waive any defect in
the tender as well as the right to accept the bid most advantageous to the government shall be reserved. In no
case, however, shall failure to meet the specifications or technical requirements of the supplies desired be
waived.
ARTICLE 434. Publication of Call for Bids. (a) The call for bids shall be given the widest publicity possible,
sending by mail or otherwise, any known prospective participant in the locality, copies of the call and by
posting copies of the same in at least three (3) publicly accessible and conspicuous places in the provincial
capitol or city, municipal, or barangay hall, as the case may be. The provincial general services officer, or the
city general services officer, or municipal treasurer, or barangay treasurer, as the case may be, shall certify to
the
effect
that
these
requirements
have
been
complied
with.
(b) The notice of the bidding may likewise be published in a newspaper of general circulation in the territorial
jurisdiction of LGU concerned when the provincial general services officer, city general services officer, or the
municipal treasurer, or the barangay treasurer, as the case may be, deems it necessary in order to obtain the
lowest
responsible
and
complying
bid.
Unless otherwise directed by the committee on awards, publication shall be made at least ten (10) calendar
days
prior
to
the
opening
of
bids.
ARTICLE 435. Committee on Awards. (a) There shall be in every province, city, or municipality a
committee on awards which shall exercise exclusive jurisdiction in deciding the winning bids and questions of
awards on procurement and disposal of supplies or property except in cases of procurement through
emergency purchase, or when the amortization is specifically vested by law in another body.
(b) The committee on awards shall be composed of the local chief executive as chairman; the local treasurer,
the local accountant, the local budget officer, the provincial general services officer, the city general services
officer, and the head of office or department for whose use the supplies are being procured, as members. In
case a head of office or department would sit in a dual capacity, a member of the sanggunian elected from
among
its
members
shall
sit
as
a
member.
(c)

The

committee

on

awards

of

the

barangay

shall

be

the

sangguniang

barangay.

(d) In no case shall a National Government official sit as a member of the committee on awards.
ARTICLE 436. Procedures on Awards. (a) Roster of Bidders The provincial general services officer, the
city general services officer, the municipal treasurer, or the barangay treasurer, respectively, shall maintain a
list
of
bona
fide
bidders
in
their
respective
LGUs.

(b) Obligations of Bidders Every bidder shall be presumed to know all terms and conditions of the call for
bid
and
shall
assume
all
risks
attendant
thereto.
(c) Quotations Quotations must be certain and definite in amount. Unless otherwise called for in the call for
bids, all quotations must be in Philippine currency inclusive of all government taxes, fees, imposts, or duties, if
any,
and
all
incidental
expenses.
The bidders shall state the period during which offer is good, which in no case shall be less than sixty (60) days.
(d) Submission of Bids On or before the time and date of opening of bids, the bidders shall submit their bids
in sealed envelopes to the offices of the provincial general services officer and city general services officer or in
the offices of the municipal treasurer or barangay treasurer, as the case may be. Said offices shall stamp
thereon
the
time
and
date
of
receipt.
(e) Opening of Bids All bids submitted shall be opened at the time, date and place set in the call for bids by
the committee on awards. Opening of bids shall be made only in the presence of the provincial, city, or
municipal auditor or his duly authorized representative who shall initial and secure copies of the bids and
certify
the
abstract
of
the
bidding.
Bidders

or

their

representatives

may

witness

the

proceedings.

(f) Acceptance of Bids and Awards Award in the procurement of supplies shall be given to the lowest
complying and responsible bid which meets all the terms and conditions of the contract or undertaking.
The results of the bidding shall be made public by posting the same in the provincial capitol or city, municipal,
or
barangay
hall,
as
the
case
may
be.
(g) Protest Against an Award A losing bidder may file with the committee on awards a protest within ten
(10) days from the date the winner was announced. The protest shall be in writing based on justifiable
grounds, accompanied with a protest bond, either in cash, certified or cashier's check, or surety bond, in an
amount equivalent to ten percent (10%) of the total value involved. Within seven (7) days from receipt of the
protest,
the
committee
on
awards
shall
render
its
decision.
ARTICLE 437. Procurement Without Public Bidding. The procurement of supplies may be made without
the
benefit
of
public
bidding
under
any
of
the
following
modes:
(a) Procurement through Personal Canvass Upon approval by the committee on awards, procurement of
supplies may be effected after personal canvass of at least three (3) responsible merchants or suppliers in the
locality by a committee of three (3) composed of the provincial or city general services officer or the municipal
or barangay treasurer, as the case may be, the local accountant, and the head of office or department for whose
use the supplies are being procured. The award shall be decided by the committee on awards.
Purchases through personal canvass under this paragraph shall not exceed the amounts specified hereunder
for
all
items
in
any
one
(1)
month
for
each
LGU:

Provinces
First
Third
Fifth

and

Cities,

and

Municipalities

within

MMA:

and
Second
Class

One
Hundred
Fifty
Thousand
Pesos
(P150,000.00);
and
Fourth
Class

One
Hundred
Thousand
Pesos
(P100,000.00);
and
Sixth
Class

Fifty
Thousand
Pesos
(P50,000.00);

Municipalities
First
Second
Fourth

outside

Class
and
Class

Third
and

Sixty
Class

Below

MMA:
Thousand
Forty
Twenty

Barangays
in
Cities,
in
Municipalities
other
Metropolitan
Subdivisions
as
may
Thousand
Pesos
All
other
barangays

Five
(b)

Emergency

Pesos
Thousand
Thousand

(P60,000.00);
Pesos
(P40,000.00);
Pesos
(P20,000.00);

within
the
MMA,
and
be
created
by
law

(P10,000.00);
Thousand
Pesos
(P5,000.00).

Purchase

in
Ten

(1) In cases of emergency where the need for the supplies is exceptionally urgent or absolutely indispensable
and only to prevent imminent danger to, or loss of, life or property, LGUs may, though the local chief executive
concerned, make emergency purchases or place repair orders, regardless of amount, without public bidding.
Delivery of purchase orders or utilization of repair orders pursuant to this Article shall be made within ten
(10) days after placement thereof. Immediately after the emergency purchase or repair order is made, the head
of office or department making the emergency purchase or repair order shall draw a regular requisition to
cover
the
same
which
shall
contain
the
following:
(i)

Complete

(ii)
(iii)
(iv)

description
By

Date

of
Unit

of

the

supplies

whom
placing

the
price

order

acquired

or

work

furnished
and
and

date

done

or

or
and

total

time

of

to

be

performed;

executed;
delivery

contract

or

execution;
price;

(v) Brief and concise explanation of the circumstances why procurement was of such urgency that the same
could not be done through regular course without involving danger to, or loss of, life or property;
(vi) Certification of the provincial general services officer, city general services officer, municipal treasurer, or
barangay treasurer, as the case may be, to the effect that the price paid or contracted for was the lowest at the
time
of
procurement;
and
(vii) Certification of the local budget officer as to the existence of appropriations for the purpose, of the local
accountant as to the obligation of the amount involved, and of the local treasurer as to availability of funds.

(2) The goods or services procured in case of emergency must be utilized or availed of within fifteen (15) days
from
the
date
of
delivery
or
availability.
(3) Without prejudice to criminal prosecution under applicable laws, the local chief executive or the head of
office making the procurement shall be administratively liable for any violation of the provisions on emergency
purchase
and
shall
be
a
ground
for
suspension
or
dismissal
from
service.
(c)

Negotiated

Purchase

(1) In cases where public biddings have failed for two (2) consecutive times and no suppliers have qualified to
participate or win in the biddings, LGUs may, through the local chief executive, undertake the procurement of
supplies by negotiated purchase, regardless of amount, without public bidding provided that the contract
covering the negotiated purchase shall be approved by the sanggunian concerned. Delivery of purchase orders
or utilization of repair orders shall be made within seven (7) days after placement thereof. Immediately after
the negotiated purchase or repair order is made, the local chief executive concerned shall draw a regular
requisition
to
cover
the
same
which
shall
contain
the
following:
(i) Complete description of the supplies acquired or the work done or to be performed;
(ii)
(iii)
(iv)

By
Date

of
Unit

whom
placing

the
price

order

furnished
and
and

date

or
and

total

time

of

executed;
delivery

contract

or

execution;
price;

(v) Certification of the provincial general services officer, city general services officer, municipal treasurer, or
barangay treasurer, as the case may be, to the effect that the price or contracted for was the lowest at the time
of
procurement;
and
(vi) Certification of the local budget officer as to the existence of appropriations for the purpose; of the local
accountant as to the obligation of the amount involved; and of the local treasurer as to availability of funds.
(2) In case of repeat orders for regular supplies, procurement may be made by negotiated purchase provided
that the repeat order is made within three (3) months from the last procurement of the same item and provided
further, that the same terms and conditions of sale are obtained for the same repeat order.
(d) Procurement from Duly Licensed Manufacturers Procurement of supplies or property may be made
directly from duly licensed manufacturers in cases of supplies of Philippine manufacture or origin. The
manufacturer must be able to present proof showing that it is a duly licensed manufacturer of the desired
product.
In case there are two (2) or more known manufacturers of the required supplies or property, canvass of prices
of the known manufacturers shall be conducted to obtain the lowest price for the same quality of said supplies
or
property.
The award for the procurement of supplies or property from duly licensed manufacturers shall be made by the

committee
(e)

on

Procurement

from

Exclusive

awards.
Philippine

Agents

or

Distributors

(1) Procurement of supplies or property of foreign origin may preferably be made directly from the exclusive
or reputable Philippine agents or distributors under the following terms and conditions:
(i) That the Philippine agent or distributor has no subagents or subdealers selling at lower prices; and
(ii) That no suitable substitutes of substantially the same quality are available at lower prices.
(2) The award for the procurement of supplies from exclusive Philippine agents or distributors shall be made
by
the
committee
on
awards.
(f)

Procurement

from

Government

Entities

(1) Government entities that are possible sources of supplies or property may be requested to fill the needs of
LGUs.
Procurement
procedures
established
by
these
entities
shall
be
observed.
(2) Prior authority from the Office of the President shall be secured in cases of procurement from units or
agencies of foreign governments with which the Philippines maintains diplomatic relations.
ARTICLE 438. Archival System. Upon the effectivity of these Rules, every LGU shall provide for the
establishment of an archival system to ensure the safety and protection of all government property, public
documents or records such as records of births, marriages, property inventory report, land assessments, land
ownership, tax payments, tax accounts, business permits, and such other records or documents of public
interest in the various offices and departments in the province, city, or municipality, and the barangay
concerned.
ARTICLE 439. Primary and Secondary Accountability for Government Property. (a) The head of office or
department of a province, city, or municipality or the punong barangay, shall be primarily accountable for all
supplies and property assigned or issued to his office or department. The person or persons entrusted with the
possession or custody of supplies and property under the primary accountability of the head of an office or
department
shall
be
immediately
accountable
to
said
officer.
(b) The head of an office or department primarily accountable for government property may require the
person in possession or having custody and control thereof under him to keep such records and make reports
as
may
be
necessary
for
his
own
information
and
protection.
(c) It shall be the duty of every head of an office or department to keep a complete record of all supplies and
property under his charge and render his accounts thereof semi-annually to the provincial or city general
services officer or the municipal mayor or punong barangay, as the case may be. The municipal or barangay
treasurer, as the case may be, shall be furnished with a copy of said report.
(d) Buildings and other physical structures shall be under the accountability and responsibility of the
provincial or city general services officer, municipal mayor or punong barangay, as the case may be. He shall

keep a separate and updated record of these properties and shall submit an inventory report to the provincial,
city, or municipal auditor on or before the fifteenth (15th) day of January each year showing, among other
things,
the
condition
of
said
properties.
ARTICLE 440. Responsibility for Proper Use and Care of Government Property. The person in actual
physical possession of or entrusted with the custody or control of supplies or property shall be responsible for
the proper use and care of the same and shall exercise due diligence in the utilization and safekeeping thereof.
He shall likewise keep a complete and updated record of such supplies and property and shall render an
account
thereof
semi-annually
to
the
head
of
office
or
department
concerned.
ARTICLE 441. Measure of Liability of Persons Accountable for Government Property. (a) The person in
possession of or having custody or control of supplies or property shall be liable for its money value in case of
illegal, improper, or unauthorized use or misapplication thereof, by himself or any other person whose acts he
may be responsible for, and shall be liable for all loss, damage, or deterioration occasioned by negligence in the
keeping or use of such property, unless it is proven that he has exercised due diligence and care in the
utilization
and
safekeeping
thereof.
(b) Unless he registers his objection in writing, an accountable person shall not be relieved from liability by
reason of his having acted under the direction of a superior officer in using supplies or property for which he is
accountable. The officer directing any illegal, unauthorized, or improper use of property shall first be required
to
answer
therefore.
(c) In cases of loss, damage, or deterioration of government property arising from, or attributable to
negligence in security, the head of the local security unit shall be held liable therefore.
ARTICLE 442. Credit for Loss Occurring in Transit or Due to Casualty. (a) When loss of government
property occurs in transit or is caused by fire, theft, force majeure, or other casualty, it shall be the duty of the
officer accountable therefore or having custody thereof to immediately notify simultaneously within thirty (30)
days from such loss, the office or department head and the provincial, city, or municipal auditor concerned.
The office or department head shall immediately conduct an investigation of the loss and refer the matter to
the proper government investigating agency. The provincial, city, or municipal auditor shall conduct a
separate inquiry of the reported loss while the clues are still fresh to determine that the alleged loss or other
casualty had really occurred. An officer or employee who fails to comply with these requirements shall not be
relieved of liability or allowed credit for any of such loss in the settlement in his accounts.
(b) The request for relief shall be filed with the provincial, city, or municipal auditor by the accountable officer
within the statutory period of thirty (30) days or of such longer period as may be allowed by the auditor. The
request
shall
be
accompanied
by
the
following
documents:
(1) Affidavit of the accountable officer containing a statement of the facts and circumstances of loss;
(2) Affidavit of two (2) disinterested persons cognizant of the facts and circumstances of loss;
(3) Final investigation report of the office or department head and proper government investigating agency;
(4) A list and description including book value, date of acquisition, property number, account classification,

condition of the property, and other additional relevant information of the properties lost duly certified by the
provincial general services officer, city general services officer, municipal treasurer, or barangay treasurer, as
the
case
may
be.
For this purpose, the request for relief shall be coursed through the office or department head concerned and
the provincial general services officer, city general services officer, municipal treasurer, or barangay treasurer,
as
the
case
may
be.
(c) In case of bulk losses of property pertaining to more than one office or department, the request for relief
shall be made by the local general services officer or local treasurer concerned. The request shall also be
accompanied by the latest inventory report preceding the loss and the inventory report of properties
remaining after the loss, duly witnessed by the provincial, city, or municipal auditor concerned.
(d)

The

same

officials

shall

request

relief

for

losses

occurring

in

transit.

(e) In all cases, the request shall be endorsed by the local chief executive, together with his recommendations,
to
the
provincial,
city
or
municipal
auditor.
(f) Credit for losses shall be returned, through the local chief executive, to the local accountant who shall on
account thereof, drop the lost properties from the books of accounts through journal voucher attaching thereto
the credit granted, together with all supporting documents. The local accountant shall furnish the provincial
general services officer, city general services officer, municipal treasurer, or barangay treasurer, as the case
may be, and the accountable officer concerned a copy of the journal voucher.
(g) A provincial, city, or municipal auditor shall not allow credit for these losses unless so expressly authorized
by COA, to be exercised only if the loss is not in excess of Fifty Thousand Pesos (P=50,000.00). In the event that
the allowance of credit is not within the competence of the provincial, city, or municipal auditor, the
application and evidence, with the recommendation of the auditor concerned, shall be forwarded to the COA
Chairman
for
his
appropriate
action.
ARTICLE 443. Property Clearances. When an employee transfers to another government offices, retires,
resigns, is dismissed, or is separated from the service, he shall be required to secure supplies or property
clearance from the supply officer concerned, the provincial or city general services officer concerned, the
municipal mayor and the municipal treasurer, or the punong barangay and the barangay treasurer, as the case
may be. The local chief executive shall prescribe the property clearance form for this purpose.
ARTICLE 444. Modes of Disposition of Property. As a general rule, sale of property owned by the LGU
shall be made only through public auction. Other modes of disposal may be resorted to only when public
auction
has
failed.
(a) Public Auction When the property of an LGU has become unserviceable for any cause, or is no longer
needed, the officer immediately accountable therefore shall return the same to the head of the office or
department who shall cancel the corresponding Memorandum Receipt. If no longer needed in the office or
department, the head of the office or department shall return the same to the provincial or city general
services officer, municipal treasurer, or barangay treasurer, as the case may be, with the use of Property
Return Slip. The provincial or city general services officer, municipal or barangay treasurer, as the case may

be, shall, through the local chief executive, file an application for its disposal through an Inventory and
Inspection Report with the provincial, city, or municipal auditor for inspection and determination whether the
subject
property
is
with
or
without
value.
If a property of an LGU has become unserviceable for any cause or is no longer needed but is found to be still
valuable, the provincial, city or municipal auditor shall indicate his findings in the Inventory and Inspection
Report and forward the same to the committee on awards. The subject property shall then be sold at public
auction to the highest bidder under the supervision of the committee on awards and in the presence of the
provincial, city, or municipal auditor or his duly authorized representative. Notice of public auction shall be
posted in at least three (3) conspicuous and publicly accessible places. If the acquisition cost exceeds One
Hundred Thousand Pesos (P100,000.00) in the case of provinces and cities, and Fifty Thousand Pesos
(P50,000.00) in the case of municipalities, notices of auction shall be published at least two (2) times within a
reasonable
period
in
a
newspaper
of
general
circulation
in
the
locality.
The provincial or city general services officer or the municipal or barangay treasurer, as the case may be, shall
be
responsible
for
disposal
of
supplies
or
property
of
the
LGU.
The local chief executive shall be responsible for the disposal of real property, building and other physical
structures.
(b) Sale through Negotiation Supplies and property no longer needed may be disposed of through private
sale at such price as may be determined by the committee on awards, subject to the approval of COA or its
duly authorized representative when the acquisition or transfer cost of the property exceeds Fifty Thousand
Pesos
(P50,000.00)
in
the
case
of
municipalities
or
barangays.
In case of real property, disposal shall be subject to the approval of COA regardless of the value or cost
involved.
(c) Transfer without Cost to Other Offices or Departments or Other Government Agencies Property which
has become unserviceable or is no longer needed may be transferred without cost to another office, agency,
subdivision or instrumentality of the National Government or another LGU at an appraised valuation
determined by the committee on awards. Such transfer shall be subject to the approval of the sanggunian
concerned making the transfer and by the head of the office, agency, subdivision, instrumentality or LGU
receiving
the
property.
(d) By Destruction When property of an LGU has become unserviceable for any cause or is no longer
needed, it shall, upon application of the head of the office or department accountable therefore, be inspected
and appraised by the provincial, city, or municipal auditor, as the case may be, or his duly authorized
representative or that of the COA Chairman, and if found valueless or unusable, shall be destroyed either by
burning, pounding, throwing beyond recovery, and the like, in the presence of the auditor.
ARTICLE 445. Tax Exemption Privileges of Local Government Units. LGUs shall be exempt from payment
of duties and taxes for the importation of heavy equipment or machinery which shall be used for the
construction, improvement, repair, and maintenance of roads, bridges, and other infrastructure projects, as
well as garbage trucks, fire trucks, and other similar equipment provided that such equipment or machinery
shall not be disposed of, either by public auction or negotiated sale as provided in this Rule, within five (5)

years from the importation thereof. In case the equipment or machinery is sold within five-year period, the
purchasers or recipients shall be considered the importers thereof, and shall be liable for duties and taxes
computed
on
the
book
value
of
such
importation.
For the effective implementation of this Article, the DOF shall issue the necessary procedures in the availment
of tax exemption privileges on importation by LGUs of heavy equipment or machinery which shall be used for
the construction, improvement, repair, and maintenance of roads, bridges, and other infrastructure projects,
as
well
as
garbage
trucks,
fire
trucks,
and
other
similar
equipment.
ARTICLE 446. Implementing Rules and Regulations. The COA shall promulgate the rules and regulations
on supply and property management of LGUs to effectively implement the provisions of this Rule, including
requirements as to testing, inspection, and standardization of supplies and property.
RULE XXXVI
Other Fiscal Matters
ARTICLE 447. Scope. This Rule shall govern the conduct and management of financial affairs,
transactions, and operations of provinces, cities, municipalities, and barangay not treated in Rules XXX,
XXXI,
XXXII,
XXXIII,
XXXIV,
and
XXXV
of
these
Rules.
ARTICLE 448. Local Funds and Special Funds. (a) Local Funds Every LGU shall maintain a General
Fund which shall be used to account for such monies and resources as may be received by and disbursed from
the local treasury. The General Fund shall consist of monies and resources of the LGU which are available for
the payment of expenditures, obligations or purposes not specifically declared by law as accruing and
chargeable
to,
or
payable
from,
any
other
fund.
(b) Special Funds There shall be maintained in every provincial, city, or municipal treasury the following
special funds which shall be deemed automatically appropriated for purposes indicated therefore:
(1) Special Education Fund shall consist of the respective shares of provinces, cities, municipalities, and
barangays in the proceeds of the additional tax on real property to be appropriated to purposes prescribed in
Article
327,
Rule
XXXI
of
these
Rules;
and
(2) Trust Funds shall consist of private and public monies which have officially come into the possession of the
LGU or of a local government official as trustee, agent or administrator, or which have been received as a
guaranty for the fulfillment of some obligation. A trust fund shall only be used for the specific purpose for
which it was created or for which it came into the possession of the LGU.
ARTICLE 449. Remittance of Government Monies to the Local Treasury. Officers of LGU authorized to
receive and collect monies arising from taxes, revenues, or receipts of any kind shall remit the full amount
received and collected to the treasury of such LGU which shall be credited to the particular account or
accounts
to
which
the
monies
in
question
properly
belong.
ARTICLE 450. Separation of Books and Depository Accounts. Local accountants and local treasurers shall
maintain separate books and depository accounts, respectively, for each fund in their custody or
administration
under
such
rules
and
regulations
as
COA
may
prescribe.

ARTICLE 451. Depository Accounts. Local treasurers shall maintain depository accounts in the name of
their respective LGUs with banks, preferably government-owned, located in or nearest their respective areas
of jurisdiction. Earnings of each depository account shall accrue exclusively thereto.
ARTICLE 452. Separation of Personal Money from Public Funds. Local treasurers and other accountable
officers shall keep personal monies separate and distinct from local public funds in their custody and shall not
make profit out of public money or otherwise apply the same to any use not authorized by law or ordinance.
ARTICLE 453. Special Accounts to be Maintained in the General Fund. LGUs shall maintain special
accounts
in
the
general
fund
for
the
following:
(a)
(b)

Public
Loans,

utilities

interests,

bond

and
issues,

and

other
other

economic

contributions

for

enterprises;
specific

purposes;

and

(c) Development projects funded from the share of the LGU concerned in the IRA and such other special
accounts
which
may
be
created
by
law
or
ordinance.
Receipts, transfer, and expenditures involving the foregoing special accounts shall be properly taken up
thereunder.
Profits or income derived from the operation of public utilities and other economic enterprises, after deduction
for the cost of improvement, repair and other related expenses of the public utility or economic enterprise
concerned, shall first be applied for the return of the advances or loans made therefore. Any excess shall form
part
of
the
General
Fund
of
the
LGU
concerned.
ARTICLE 454. Expenditures, Disbursements, Accounting, and Accountability. (a) Prohibition Against
Expenditures for Religious or Private Purposes No public money shall be appropriated or applied for the
benefit of any religious sect or activity not any undertaking or purpose private in character.
(b) Use of Appropriated Funds and Savings Funds shall be available exclusively for the specific purpose for
which they have been appropriated. No ordinance shall be passed authorizing any transfer of appropriations
from one item to another. The local chief executive or the presiding officer of the sanggunian concerned, may,
by ordinance, be authorized to augment any item in the approved annual budget for their respective offices
from savings in other items within the same expense class of their respective appropriations.
For

purposes

of

this

Article,

savings

and

augmentation

shall

mean:

(1) Savings refer to portions or balances of any programmed appropriation free from any obligation or
encumbrance still available after the satisfactory completion or unavoidable discontinuance or abandonment
of the work, activity or purpose for which the appropriation is authorized, or arising from unpaid
compensation and related costs pertaining to vacant positions and leaves of absence without pay.
(2) Augmentation implies the existence in the budget of an item, project, activity or purpose with an
appropriation which upon implementation or subsequent evaluation of needed resources is determined to be

deficient.
(c) Restrictions upon Limit of Disbursements Disbursements in accordance with appropriations in the
approved annual budget may be made from any local fund in the custody of the local treasurer, but the total
disbursements from any local fund shall in no case exceed fifty percent (50%) of the uncollected estimated
revenue accruing to such local fund in addition to the actual collections provided, however, that no cash
overdraft in any local fund shall be incurred at the end of the fiscal year.
In case of emergency arising from typhoon, earthquake, or any other calamity, the sanggunian concerned may
authorize the local treasurer to continue making disbursements from any local fund in his possession in excess
of the limitations herein provided, but only for such purposes and amounts included in the approved annual
budgets. Any overdraft which may be incurred at the end of the year in any local fund by virtue of the
provisions hereof shall be covered with the first collections of the immediately succeeding fiscal year accruing
to
such
local
fund.
(d) Disbursements of Appropriations for Development Projects Art. 391 of Rule XXXII of these Rules
mandate each LGU to appropriate their share in the proceeds from the development and utilization of the
national wealth to finance local development and livelihood projects, respectively.
Disbursements from such special accounts under the General Fund shall proceed from itemized
appropriations in the budgets of LGU instead of by lumpsum. Such itemized appropriations shall be for
specific development projects/activities embodied in the local development plan and/or public investment
program formulated and prioritized by the Local Development Council and approved by the sanggunian
concerned. Provided also that copies of the development plan of LGU shall be furnished DILG and that at
least eighty (80) percent of the proceeds derived from the development and utilization of hydrothermal,
geothermal and other sources of energy shall be applied solely to lower the cost of electricity in the LGUs
where
such
a
source
of
energy
is
located.
Appropriation for development projects shall not include those for personal services including salaries
standardization except for contractual employees who may be, if necessary, contracted coterminous with and
compensation, against the project, subject to budget and COA rules and regulations.
Development projects, activities for this purpose, are those component project/activity incidental to the
efficient and effective provision of the basic services and facilities enumerated in Rule of these Rule and for
the preservation and enhancement of the indigenous resources of wealth of the LGU from which share is
derived,
as
the
case
may
be.
(e) Prohibitions Against Advance Payments No money shall be paid on account of any contract under which
no
services
have
been
rendered
or
goods
delivered.
(f) Cash Advances No cash advance shall be granted to any local official or employee, elective or appointive,
unless made in accordance with the rules and regulations as COA may prescribe.
(g) Persons Accountable for Local Government Funds Any officer of the LGU whose duty permits or
requires the possession or custody of local government funds shall be accountable and responsible for the
safekeeping thereof in conformity with the provisions of this Rule. Other local officers who, though not

accountable by the nature of their duties, may likewise be similarly held accountable and responsible for local
government funds through their participation in the use or application thereof.
(h) Prohibitions Against Pecuniary Interest Without prejudice to criminal prosecution under applicable
laws, any local treasurer, local accountant, local budget officer, or other accountable local officer having any
pecuniary interest, direct or indirect, in any contract, work or other business of the LGU of which he is an
accountable
officer
shall
be
administratively
liable
therefore.
(i) Liability for Acts Done Upon Direction of Superior Officer, or Upon Participation of Other Officer or
Department Heads or Officers of Equivalent Rank Unless he registers his objection in writing, the local
treasurer, local accountant, local budget officer, or other accountable local officer shall not be relieved of
liability for illegal or improper use or application or deposit of government funds or property by reason of his
having acted upon the direction of a superior officer, elective or appointive, or upon participation of other
office or department heads or officers of equivalent rank. The superior officer directing, or the office or
department head participating in such illegal or improper use or application or deposit of government funds or
property, shall be jointly and severally liable with the local treasurer, local accountant, local budget officer, or
other accountable local officer for the sum or property so illegally or improperly used, applied or deposited.
(j) Prohibition Against Expenses for Reception and Entertainment No money shall be appropriated, used,
or paid for entertainment or reception except to the extent of the representation allowances authorized by law
or for the reception of visiting dignitaries of foreign governments or foreign missions, or when expressly
authorized
by
the
President
in
specific
cases.
(k) Certification on, and Approval of, Vouchers No money shall be disbursed unless the local budget officer
certifies to the existence of appropriation that has been legally made for the purpose, the local accountant has
obligated said appropriation, and the local treasurer certifies to the availability of funds for the purpose.
Vouchers and payrolls shall be certified to and approved by the head of the office or department who has
administrative control of the fund concerned, as to validity, propriety, and legality of the claim involved.
Except in cases of disbursements involving regularly recurring administrative expenses such as payrolls for
regular or permanent employees, expenses for light, water, telephone and telegraph services, remittances to
government creditor agencies such as the GSIS, SSS, LBP, DBP, National Printing Office, Procurement Service
of the DBM and others, approval of the disbursement voucher by the local chief executive himself shall be
required
whenever
local
funds
are
disbursed.
In cases of special or trust funds, disbursements shall be approved by the administrator of the fund.
In case of temporary absence or incapacity of the office or department head, the officer next-in-rank shall
automatically
perform
his
function
and
he
shall
be
fully
responsible
therefore.
(l) Officials Authorized to Draw Checks in Settlement of Obligations Checks in settlement of obligations
shall be drawn by the local treasurer and countersigned by the local administrator.
In case of temporary absence or incapacity of the foregoing officials, these duties shall devolve upon their
immediate
assistants.
(m) Disbursements of Local Funds and Statements of Accounts Disbursements shall be made in accordance

with the ordinance authorizing the annual or supplemental appropriations without the prior approval of the
sanggunian concerned. Within thirty (30) days after the close of each month, the local accountant shall furnish
the sanggunian with such financial statements as may be prescribed by COA. In the case of the year-end
statement of accounts, the period shall be sixty (60) days after the thirty-first (31st) of December.
(n) Rendition of Accounts Local treasurers, local accountants and other accountable local officers shall
render their accounts within such time, in such form, style, and content and under such regulations as COA
may
prescribe.
Provincial, city, and municipal auditors shall certify the balances arising in the accounts settled by them to the
COA Chairman and to the local treasurer, local accountant, and other accountable local officers. Copies of the
certification shall be prepared and furnished other local officers who may be held jointly and severally liable
for any loss or illegal, improper or unauthorized use or misappropriation of local funds or property.
(o) Auditorial Visitation The books, accounts, papers, and cash of local treasurer, local accountant, local
budget officer, or other accountable local officers shall at all times be open for inspection of COA or its duly
authorized
representative.
In case an examination of the accounts of a local treasurer discloses a shortage in cash which should be on
hand, it shall be the duty of the examining officer to seize the office and its contents, notify COA, the local chief
executive concerned, and the local accountant. Thereupon, the examining officer shall immediately turn over
to the accountable officer next-in-rank in the local treasury service, unless the said officer is likewise under
investigation, the auditor shall take full possession of the office of the treasurer and its contents, and close and
render
his
accounts
on
the
date
of
turnover.
In case the accountable officer next in rank is under investigation, the auditor shall take full possession of the
office and its contents, close and render his accounts on the date of taking possession, and temporarily
continue the public business of such office until such time that the local treasurer is restored or a successor has
been duly designated. The local treasurer or accountable officer found with such shortage shall be
automatically
suspended
from
office.
(p) Accounting for Revenues Estimated revenues which remain unrealized at the close of the fiscal year
shall not be booked or credited to the unappropriated surplus or any other account.
(q) Accounting for Obligations All lawful expenditures and obligations incurred during a fiscal year shall be
taken
up
in
the
accounts
of
that
year.
(r) General Liability for Unlawful Expenditures Expenditures of funds or use of property in violation of the
applicable provisions of these Rule and other laws shall be a personal liability of the official or employee
responsible
therefore.
(s) Posting of the Summary of Income and Expenditures Local treasurers, local accountants, local budget
offices, and other accountable local officers shall, within thirty (30) days from the end of each fiscal year, post
in at least three (3) conspicuous and publicly accessible places in the LGU a summary of all revenues collected
and funds received including the appropriations and disbursement of such funds during the preceding fiscal
year.

ARTICLE 455. The Official Fiscal Year. The official fiscal year of LGUs shall be the period beginning with
the first (1st) day of January and ending with the thirty-first (31st) day of December of the same year.
ARTICLE 456. Administrative Issuances, Local Treasury Operations Manual. The DOF, jointly with the
Chairman of COA, shall within one (1) year from the effectivity of the Code, promulgate a Treasury
Operations Manual for LGUs.
RULE XXXVII
Debt Relief for Local Government Units
ARTICLE 457. Scope. This Rule shall govern the granting of debt relief for provinces, cities and
municipalities.
ARTICLE

458.

Coverage.

Debt

relief

for

LGUs

shall

cover

the

following:

(a) All debts owed by LGUs to the National Government arising from statutory contributions to the Integrated
National
Police
Fund,
the
Special
Education
Fund,
and
the
hospital
fund.
(b) National government shares in taxes, fees, and charges collected by LGUs that have been unremitted as of
December
31,
1991.
(c) Program loans, either secured to LGUs by NGAs and which were relent to private persons, natural or
juridical, or granted to LGUs by NGAs and which were utilized by LGUs for community development,
livelihood,
and
other
small-scale
projects.
(d) Debts due to GFIs, GOCCs and private utilities that are outstanding as of December 31, 1988.
ARTICLE

459.

Limitations.

Debt

relief

shall

not

apply

to

the

following:

(a) Statutory contribution of the cities and municipalities of MMA to the Metropolitan Manila Authority that
have
accrued
as
of
December
31,
1991.
Beginning calendar year 1992, cities and municipalities within MMA are no longer required to make such
contributions
to
the
Metropolitan
Manila
Authority.
(b) Foreign loans or indebtedness of LGUs arising from loan contracts or project agreements entered into with
foreign
countries
or
international
lending
institutions
and
agencies.
(c) National taxes collected by the local treasurer that accrue in full to the National Government.
(d) Debts incurred or contracted by LGUs from GFIs, GOCCs, and private utilities after December 31, 1988,
which shall be settled by the LGU concerned. For this purpose, repayments of outstanding obligations which
are covered by existing withholding agreement shall continue to be deducted from the IRA share of debtorLGU.

(e) Obligations to the Home Development Mutual Fund (Pag-IBIG), Medicare, and those pertaining to
premium contributions and amortization payment of salary and policy loans to the Government Service
Insurance
System.
ARTICLE 460. Manner of Settlement. (a) Subject to limitations provided under this Rule, all unremitted
national collections and statutory contributions and program loans shall be written off in full provided that
NGA tasked with the implementation of program loans secured by LGU which were relent to private persons,
natural or juridical, shall continue to collect from debtors belonging to the private sector concerned.
(b) The National Government shall assume all debts incurred or contracted by LGUs from GFIs, GOCCs, and
private utilities that are outstanding as of December 31, 1988, in accordance with the following schemes:
(1) The National Government may buy outstanding obligations incurred by LGUs from GFIs at a discounted
rate.
(2) The National Government may settle obligations due GOCCs at a discounted rate through offsetting, only
to the extent of the obligations of LGUs against the outstanding advances made by the National Treasury in
behalf
of
the
GOCC
concerned.
(3) The National Government may settle debts due private utilities at a discounted rate by offsetting against
the outstanding obligations of such private utilities to GOCCs. GOCCs may in turn offset these obligations
against the outstanding advances made by the National Treasury in their behalf.
In the case of obligations owed by LGUs to private utilities which are not indebted to any GOCC or NGA, the
National Government may instead buy the obligations of LGUs from the private utilities at a discounted rate,
upon
concurrence
by
the
private
utilities
concerned.
ARTICLE 461. Recovery Schemes for the National Government. (a) LGUs shall pay back the National
Government whatever amounts were advanced or offset by the National Government to settle their obligations
to GFIs, GOCCs, and private utilities. The National Government shall not charge interest or penalties on the
outstanding balance owed by LGUs. These outstanding obligations shall be restructured and an amortization
schedule
prepared,
based
on
the
capability
of
LGU
to
pay.
(b) The National Government shall be authorized to deduct from the quarterly share of each LGU in internal
revenue allotments an amount to be determined on the basis of the amortization schedule of LGU concerned
provided that such deduction shall not exceed five percent (5%) of the monthly internal revenue allotment of
LGU
concerned.
ai
(c) As incentive to debtor-LGUs to increase fiscal management efficiency, the National Government shall write
off outstanding debts of LGUs at the rate of five percent (5%) for every one percent (1%) increase in revenues
generated by LGU over the collections of the preceding year. For this purpose, the annual increase in local
revenue
collections
shall
be
computed
starting
from
the
year
1988.
ARTICLE 462. Appropriations. Such amount as may be necessary to implement the provisions of this Rule
shall
be
included
in
the
annual
General
Appropriations
Act.

ARTICLE 463. Implementation. The Development Budget Coordinating Committee through the Task
Force on debt relief created under DBCC Order No. 2 dated September 18, 1990, in consultation with the
presidents of the leagues of provinces, cities and municipalities, shall prepare and implement a debt relief
program for LGUs and issue such guidelines as may be necessary for the effective implementation of this Rule.
RULE XXXVIII
Monitoring System for the Implementation
of the Local Government Code of 1991
ARTICLE 464. Mandate. Pursuant to the Code, the Oversight Committee shall supervise the transfer of
such powers and functions mandated under the Code to the LGUs, together with the corresponding personnel,
properties, assets and liabilities of the offices or agencies concerned, with the least possible disruptions to
existing programs and projects. The Committee shall likewise recommend the corresponding appropriations
necessary
to
effect
the
said
transfer.
The Code likewise provides that the Congress shall conduct a mandatory review of the Code at least once
every five (5) years and as often as it may deem necessary, with the primary objective of providing a more
responsive
and
accountable
local
government
structure.
ARTICLE 465. Installation and Purpose of a Monitoring System. There shall be established a monitoring
system for the implementation of the code to hasten the decentralization process, support the oversight
committee in the supervision of the transfer of powers and functions from the national government agencies to
local government units and provide valuable information to promote local autonomy.
ARTICLE 466. Organization and Responsibility. There shall be established from the national to the local
levels an organization responsible for the operationalization of the monitoring system. For this purpose, the
DILG shall be the lead agency of the said organization composed of the following:
(a)

National

(1)
Department
of
the
Interior
and
Local
Government
(2)
Department
of
Finance
(3)
Department
of
Budget
and
Management
(4)
Senate
(5)
House
of
Representatives
(6)
League
of
Provinces
(7)
League
of
Cities
(8)
League
of
Municipalities
(9)
Liga
ng
mga
Barangay
(10)
Commission
on
Audit
(11)
Civil
Service
Commission
(12) National Government Agencies affected by Devolution
(b) Regional All national government agencies represented at the national organization of the monitoring
system.
(c) Province, City, and Municipality All provincial, city, and municipal field offices of the DILG and NGAs

affected
A

by

National

Secretariat

for

devolution.

the

monitoring

system

shall

be

created

in

the

DILG.

ARTICLE 467. Target Users and Their Information Requirements. The target users of the monitoring
system are the Oversight Committee, the NGAs concerned, the Congress, and the LGUs.
The

information

requirements

of

the

target

users

cover

the

following

areas:

(a) Transfer of personnel, assets, projects, funds, and records corresponding to the devolved functions;
(b) Deconcentration of requisite authority and power of national government agencies from their central
offices
to
appropriate
regional
and
field
offices;
(c)

Mandated

(d)

Reorganization

(e)

Formation

(f)

Compliance

(g)

LGU

NGO-LGU

(i)

Grants,

(j)

of
and

with

participation

(h)

fund

joint
aids,
Other

LGUs

the

ventures
and

of

standards,
planning
and

to

and

operation

established
in

allocations

and

affected
local

guidelines,

systems

programs

given

relevant

NGAs;

special

implementation

cooperative

subsidies

LGUs;

to

of

bodies;

and

procedures;

national
or

projects;

undertakings;

LGUs;

and

information.

ARTICLE 468. Funding. Funds for the implementation of the monitoring system shall be taken the
appropriations of the DILG. Other national government agencies may augment funds out of their savings.
Likewise, the LGUs may set aside funds for this purpose from any available local funds.
ARTICLE 469. Implementation. The monitoring system shall be implemented upon approval of these
Rules.
The national organization shall provide the monitoring network with module specifications, implementation
strategy, and timetable.
RULE XXXIX
Miscellaneous and Final Provisions
ARTICLE 470. Inventory of Infrastructure and Other Community Facilities. (a) Every LGU shall conduct
a periodic inventory of infrastructure and other community facilities and undertake the maintenance, repair,
improvement, or reconstruction of these facilities through a closer cooperation among the NGAs operating

within

the

province,

city,

municipality,

or

barangay

concerned.

(b) No infrastructure or community project within the territorial jurisdiction of an LGU shall be undertaken
without
informing
the
local
chief
executive
and
the
sanggunian
concerned.
ARTICLE 471. Liability for Damages. As provided in Article 2189 of RA 386, otherwise known as the Civil
Code of the Philippines, as amended, provinces, cities, and municipalities shall be liable for damages for the
death of, or injuries suffered by, any person by reason of the defective condition of roads, streets, bridges,
public buildings, and other public works under their control or supervision. The extent of liability for damages
shall
be
governed
by
the
provisions
of
the
Civil
Code
on
quasi-delicts.
ARTICLE 472. Failure to Post and Publish the Itemized Monthly Collections and Disbursements. Failure
by the local treasurer or the local accountant to post the itemized monthly collections and disbursements of the
LGU concerned, within ten (10) days following the end of every month and for at least two (2) consecutive
weeks at prominent places in the provincial capitol, or city, municipal or barangay hall, its plaza and main
street, and to publish said itemization in a newspaper of general circulation, where available, in the territorial
jurisdiction of the LGU concerned, shall be punished by imprisonment not exceeding one (1) month or a fine
not exceeding Five Hundred Pesos (P500.00), or both such imprisonment and fine, at the discretion of the
court.
ARTICLE 473. Separability Clause. If, for any reason or reasons, any part or provision of these
Implementing Rules and Regulations shall be held unconstitutional or invalid, other parts or provisions
thereof which are not affected thereby shall continue to be in full force and effect.
ARTICLE 474. Repealing Clause. (a) Except as otherwise provided in the Code, the following are repealed:
(1)

BP

337,

EO

112,

series

of

1987,

and

EO

319,

series

of

1988;

(2) PDs 684, 1191, 1508, and such other decrees, orders, instructions, memoranda, and issuances related to or
concerning
the
barangay;
(3) The provisions of Sections 2,3, and 4 of RA 1939 regarding hospital fund; Section 3, a(3) and b(2) of RA
5447 regarding the special education fund; PD 144, as amended by PDs 559 and 1741; PD 231, as amended;
PD 436, as amended by PD 558; and PDs 381, 436, 464, 477, 526, 632, 752, and 1136; and
(4)

PD

1594

insofar

as

it

governs

locally-funded

projects.

(b) Insofar as they are inconsistent with the provisions of the Code, the following are repealed, amended, or
modified
accordingly:
(1) Sections 2, 16, and 29 of PD 704; Section 12 of PD 87, as amended; Sections 52, 53, 66, 67, 68, 69, 70, 71, 72,
73, and 74 of PD 463, as amended; and Section 16 of PD 972, as amended; and
(2) All general and special laws, acts, city charters, decrees, executive orders, proclamations, and
administrative regulations or part or parts thereof which are inconsistent with any of the provisions of the
Code.

ARTICLE 475. Effectivity. These Rules shall take effect upon publication thereof in a newspaper of general
circulation.
The foregoing Implementing Rules and Regulations of the Local Government Code of 1991 consisting of 250
pages including this page are being issued in compliance with Section 533 of the Code.
Approved: February 21, 1992