REPUBLIC ACT NO.

7160 – LOCAL GOVERNMENT CODE OF THE PHILIPPINES

Book I – General Provisions

Title I – Basic Principles

Chapter 1 – The Code: Policy and Application

Section 1 – Title
Section 2 – Declaration of Policy
Section 3 – Operative Principles of Decentralization
Section 4 – Scope of Application
Section 5 – Rules of Interpretation

Chapter 2 – General Powers and Attributes of Local Government Units

Section 6 – Authority to Create Local Government Units

Section 7 – Creation and Conversion
Section 8 – Division and Merger
Section 9 – Abolition of Local Government Units
Section 10 – Plebiscite
Section 11 – Selection and Transfer of Local Government Site, Offices, and
Facilities
Section 12 – Government Centers
Section 13 – Naming of Local Government Units and Public Places, Streets
and Structures
Section 14 – Beginning of Corporate Existence
Section 15 – Political and Corporate Nature of Local Government Units
Section 16 – General Welfare
Section 17 – Basic Services and Facilities
Section 18 – Power to Generate and Apply Resources
Section 19 – Eminent Domain
Section 20 – Reclassification of Lands
Section 21 – Closure and Opening of Roads
Section 22 – Corporate Powers
Section 23 – Authority to Negotiate and Secure Grants
Section 24 – Liability for Damages

Chapter 3 – Intergovernmental Relations

Article One – National Government and Local Government Units

Section 25 – National Supervision over Local Government Units

Section 26 – Duty of National Government Agencies in the Maintenance of

Ecological Balance
Section 27 - Prior Consultations Required
Article Two – Relations with the Philippine National Police
 Section 28 – Powers of Local Chief Executives over the Units of the
Philippine National Police

Article Three – Inter-Local Government Relations

Section 29 - Provincial Relations with Component Cities and Municipalities

Section 30 – Review of Executive Orders
Section 31 – Submission of Municipal Questions to the Provincial Legal
Officer or Prosecutor
Section 32 – City and Municipal Supervision over Their Respective
Barangays
Section 33 – Cooperative Undertakings Among Local Government Units

Chapter 4 – Relations with People’s and Nongovernmental Organizations

Section 34 – Role of People’s and Nongovernmental Organizations

Section 35 – Linkages with People’s and Non-Governmental Organizations
Section 36 – Assistance to People’s and Nongovernmental Organizations

Chapter 5 – Local Prequalification, Bids and Awards Committee

Section 37 – Local Prequalification, Bids and Awards Committee (Local

PBAC)
Section 38 – Local Technical Committee

Title II – Elective Officials

Chapter 1 – Qualifications and Election

Section 39 – Qualifications
Section 40 – Disqualifications
Section 41 – Manner of Election
Section 42 – Date of Election
Section 43 – Term of Office

Chapter 2 – Vacancies and Succession

Section 44 – Permanent Vacancies in the Offices of the Governor, Vice-

Governor, Mayor and Vice-Mayor
Section 45 – Permanent Vacancies in the Sanggunian
Section 46 – Temporary Vacancy in the Office of the Local Chief Executive
Section 47 – Approval of Leaves of Absence
 Chapter 3 – Local Legislation

Section 48 – Local Legislative Power

Section 49 – Presiding Officer
Section 50 – Internal Rules of Procedure
Section 51 – Full Disclosure of Financial and Business Interests of
Sanggunian Members
Section 52 – Sessions
Section 53 – Quorum
Section 54 – Approval of Ordinances
Section 55 – Veto Power of the Local Chief Executive
Section 56 – Review of Component City and Municipal Ordinances or
Resolutions by the Sangguniang Panlalawigan
Section 57 – Review of Barangay Ordinances by the Sangguniang
Panlungsod or Sangguniang Bayan
Section 58 – Enforcement of Disapproved ordinances or Resolutions
Section 59 – Effectivity of Ordinances or Resolutions

Chapter 4 – Disciplinary Actions

Section 60 – Grounds for Disciplinary Actions

Section 61 – Form and Filing of Administrative Complaints
Section 62 – Notice of Hearing
Section 63 – Preventive Suspension
Section 64 – Salary Respondent Pending Suspension
Section 65 – Rights of Respondent
Section 66 – Form and Notice of Decision
Section 67 – Administrative Appeals
Section 68 – Execution Pending Appeal

Chapter 5 – Recall

Section 69 – By Whom Exercised

Section 70 – Initiation of the Recall Process
Section 71 – Election on Recall
Section 72 – Effectivity of Recall
Section 73 – Prohibition from Resignation
Section 74 – Limitations on Recall
Section 75 – Expenses Incident to Recall Elections

Title III – Human Resources and Development

Section 76 – Organizational Structure and Staffing Pattern

Section 77 – Responsibility for Human Resources and Development
 Section 78 – Civil Service Law, Rules and Regulations, and Other Related
Issuances
Section 79 – Limitation on Appointments
Section 80 – Public Notice of Vacancy; Personnel Selection Board
Section 81 – Compensation of Local Officials and Employees
Section 82 – Resignation of Elective Local Officials
Section 83 – Grievance Procedure
Section 84 – Administrative Discipline
Section 85 – Preventive Suspension of Appointive Local Officials and
Employees
Section 86 – Administrative Investigation
Section 87 – Disciplinary Jurisdiction
Section 88 – Execution Pending Appeal
Section 89 – Prohibited Business and Pecuniary Interest
Section 90 – Practice of Profession
Section 91 – Statement of Assets and Liabilities
Section 92 – Oath of Office
Section 93 – Partisan Political Activity
Section 94 – Appointment of Elective and Appointive Local Officials;
Candidates Who Lost in an Election
Section 95 – Additional or Double Compensation
Section 96 – Permission to Leave Station
Section 97 – Annual Report

Title IV – Local School Boards

Section 98 – Creation, Composition and Compensation

Section 99 – Functions of Local School Boards
Section 100 – Meetings and Quorum; Budget
Section 101 – Compensation and Remuneration

Title V – Local Health Boards

Section 102 – Creation and Composition

Section 103 – Meetings and Quorum
Section 104 – Compensation and Remuneration
Section 105 – Direct National Supervision and Control by the Secretary of Health

Title VI – Local Development Councils

Section 106 – Local Development Councils

Section 107 – Composition of Local Development Councils
Section 108 – Representation of Non-Governmental Organizations
Section 109 – Functions of Local Development Councils
 Section 110 –
Meetings and Quorum
Section 111 –
Executive Committee
Section 112 –
Sectoral or Functional Committees
Section 113 –
Secretariat
Section 114 –
Relation of Local Development Councils to the Sanggunian and the
Regional Development Council
Section 115 – Budget Information

Title VII – Local Peace and Order Council

Section 116 – Organization

Title VIII – Autonomous Special Economic Zone

Section 117 – Establishment of Autonomous Special Economic Zones

Title IX – Other Provisions Applicable to Local Government Units

Chapter 1- Settlement of Boundary Disputes

Section 118 – Jurisdictional Responsibility for Settlement of Boundary Dispute

Section 119 – Appeal

Chapter 2 – Local Initiative and Referendum

Section 120 – Local Initiative Defined

Section 121 – Who May Exercise
Section 122 – Procedure in Local Initiative
Section 123 – Effectivity of Local Propositions
Section 124 – Limitations on Local Initiatives
Section 125 – Limitations upon Sanggunians
Section 126 – Local Referendum Defined
Section 127 – Authority of Courts
Book II – Local Taxation and Fiscal Matters

Title One – Local Government Taxation

Chapter 1 – General Provisions

Section 128 – Scope

Section 129 – Power to Create Source of Revenue
Section 130 – Fundamental Principles
Section 131 – Definition of Terms
Section 132 – Local Taxing Authority
Section 133 – Common Limitations on the Taxing Powers of Local Government
Units

Chapter 2 – Specific Provisions on the Taxing and Other Revenue

Raising Powers of Local Government Units

Article One - Provinces

Section 134 – Scope of Taxing Powers

Section 135 – Tax on Transfer of Real Property Ownership
Section 136 – Tax on Business of Printing and Publication
Section 137 – Franchise Tax
Section 138 – Tax on Sand, Gravel and Other Quarry Resources
Section 139 – Professional Tax
Section 140 – Amusement Tax
Section 141 – Annual Fixed Tax For Every Delivery Truck or Van of
Manufacturers or Producers, Wholesalers of, Dealers, or Retailers
in, Certain Products

Article Two – Municipalities

Section 142 - Scope of Taxing Powers

Section 143 – Tax and Business
Section 144 – Rates of Tax within the Metropolitan Manila Area
Section 145 – Retirement of Business
Section 146 – Payment of Business Taxes
Section 147 – Fees and Charges
Section 148 – Fees for Sealing and Licensing of Weights and Measures
Section 149 – Fishery Rentals, Fees and Charges
Section 150 – Situs of the Tax

Article Three – Cities

Section 151 – Scope of Taxing Powers

Article Four – Barangays

Section 152 – Scope of Taxing Powers

Article Five – Common Revenue-Raising Powers

Section 153 – Services Fees and Charges

Section 154 – Public Utility Charges

Article Six – Community Tax

Section 156 – Community Tax

Section 157 – Individuals Liable to Community Tax
Section 158 – Juridical Persons Liable to Community Tax
Section 159 – Exemption
Section 160 – Place of Payment
Section 161 – Time for Payment; Penalties for Deliquency
Section 162 – Community Tax Certificate
Section 163 – Presentation of Community Tax Certificate on Certain Occasions
Section 164 – Printing of Community of Tax Certificates and Distribution of
Proceeds

Chapter 3 – Collection of Taxes

Section 165 - Tax Period and Manner of Payment

Section 166 – Accrual of Tax
Section 167 – Time of Payment
Section 168 – Surcharges and Penalties on unpaid taxes, fees, or charges
Section 169 – Interests on Other Unpaid Revenues
Section 170 – Collection of Local Revenues by Treasurer
Section 171 – Examination of Books of Accounts and Pertinent Records of
Businessmen by Local Treasurer

Chapter 4 – Civil Remedies for Collection of Revenues

Section 172 –
Application of Chapter
Section 173 –
Local Government’s Lien
Section 174 –
Civil Remedies
Section 175 –
Distraint of Personal Property
Section 176 –
Levy on Real Property
Section 177 –
Penalty for Failure to Issue and Execute Warrant
Section 178 –
Advertisement and Sale
Section 179 –
Redemption of Property Sold
Section 180 –
Final Deed to Purchaser
Section 181 –
Purchase of Property By the Local Government Units for Want of
Bidder
Section 182 – Resale of Real Estate Taken for Taxes, Fees, or Charges
Section 183 – Collection of Delinquent Taxes, Fees, Charges or other Revenues
through Judicial Action
 Section 184 – Further Distraint of Levy
Section 185 – Personal Property Exempt from Distraint or Levy

Chapter 5 – Miscellaneous Provisions

Section 186 – Power to Levy Other Taxes, Fees or Charges

Section 187 – Procedure for Approval and Effectivity of Tax Ordinances and
Revenue Measures; Mandatory Public Hearings
Section 188 – Publication of Tax Ordinances and Revenue Measures
Section 189 – Furnishing of Copies of Tax Ordinances and Revenue Measures
Section 190 – Attempt to Enforce Void or Suspended Tax Ordinances and
Revenue Measures
Section 191 – Authority of Local Government Units to Adjust Rates of Tax
Ordinances
Section 192 – Authority to Grant Tax Exemption Privileges
Section 193 – Withdrawal of Tax Exemption Privileges

Chapter 6 – Taxpayer’s Remedies

Section 194 – Periods of Assessment and Collection

Section 195 – Protest of Assessment
Section 196 – Claim for Refund of Tax Credit

Title II – Real Property Taxation

Chapter 1 – General Provisions

Section 197 – Scope

Section 198 – Fundamental Principles
Section 199 – Definitions
Section 200 – Administration of the Real Property Tax

Chapter 2 – Appraisal and Assessment of Real Property

Section 201 – Appraisal of Real Property

Section 202 – Declaration of Real Property by the Owner or Administrator
Section 203 – Duty of Person Acquiring Real Property or Making Improvement
Thereon
Section 204 – Declaration of Real Property by the Assessor
Section 205 – Listing of Real Property in the Assessment Rolls
Section 206 – Proof of Exemption of Real Property from Taxation
Section 207 – Real Property Identification System
Section 208 – Notification of Transfer of Real Property Ownership
Section 209 – Duty of Registrar of Deeds to Apprise Assessor of Real Property
Listed in Registry
Section 210 – Duty of Official Issuing Building Permit or Certificate of
Registration of Machinery to Transmit Copy to Assessor
Section 211 – Duty of Geodetic Engineers to Furnish Copy of Plans to Assessor
Section 212 – Preparation of Schedule of Fair Market Values
Section 213 – Authority of Assessor to Take Evidence
Section 214 – Amendment of Schedule of Fair Market Values
Section 215 – Classes of Real Property for Assessment Purposes
Section 216 – Special Classes of Real Property
Section 217 – Actual Use of Real Property as Basis for Assessment
Section 218 – Assessment Levels
Section 219 – General Revision of Assessments and Property Classification
Section 220 – Valuation of Real Property
Section 221 – Date of Effectivity of Assessment or Reassessment
Section 222 – Assessment of Property Subject to Back Taxes
Section 223 – Notification of New or Revised Assessment
Section 224 – Appraisal and Assessment of Machinery
Section 225 – Depreciation Allowance for Machinery

Chapter 3 – Assessment Appeals

Section 226 – Local Board of Assessment Appeals

Section 227 – Organization, Powers, Duties and Functions of the Local Board of
Assessment Appeals
Section 228 – Meetings and Expenses of the Local Board of Assessment Appeals
Section 229 – Action by the Local Board of Assessment Appeals
Section 230 – Central Board of Assessment Appeals
Section 231 – Effect of Appeal on the Payment of Real Property Tax

Chapter 4 – Imposition of Real Property Tax

Section 232 – Power to Levy Real Property Tax

Section 233 – Rates of Levy
Section 234 – Exemptions from Real Property Tax

Chapter 5 – Special Levies on Real Property

Section 235 – Additional Levy on Real Property for the Special Education Fund
Section 236 – Additional Ad Valorem Tax on Idle Lands
Section 237 – Idle Lands, Coverage
Section 238 – Idle Lands Exempt from Tax
Section 239 – Listing of Idle Lands by the Assessor
Section 240 – Special Levy by Local Government Units
Section 241 – Ordinance Imposing a Special Levy
Section 242 – Publication of Proposed Ordinance Imposing a Special Levy
Section 243 – Fixing the Amount of Special Levy
Section 244 – Taxpayer’s Remedies Against Special Levy
Section 245 – Accrual of Special Levy

Chapter 6 – Collection of Real Property Tax

Section 246 – Date of Accrual of Tax

Section 247 – Collection of Tax
Section 248 – Assessor to Furnish Local Treasurer with Assessment Roll
Section 249 – Notice of Time for Collection of Tax
Section 250 – Payment of Real Property Taxes in Installments
Section 251 – Tax Discount for Advanced Prompt Payment
Section 252 – Payment Under Protest
Section 253 – Repayment of Excessive Collections
Section 254 – Notice of Delinquency in the Payment of the Real Property
Section 255 – Interests on Unpaid Real Property Tax
Section 256 – Remedies for the Collection of Real Property Tax
Section 257 – Local Government Lien
Section 258 – Levy on Real Property
Section 259 – Penalty for Failure to Issue and Execute Warrant
Section 260 – Advertisement and Sale
Section 261 – Redemption of Property Sold
Section 262 – Final Deed to Purchaser
Section 263 – Purchase of Property By the Local Government Units for Want
of Bidder
Section 264 – Resale of Real Estate Taken for Taxes, Fees, or Charges
Section 265 – Further Distraint or Levy
Section 266 – Collection of Real Property Tax Through the Courts
Section 267 – Action Assailing Validity of Tax Sale
Section 268 – Payment of Delinquent Taxes on Property Subject of Controversy
Section 269 – Treasurer to Certify Delinquencies Remaining Uncollected
Section 270 – Periods Within Which to Collect Real Property Taxes

Chapter 7 – Disposition of Proceeds

Section 271 – Distribution of Proceeds

Section 272 – Application of Proceeds of the Additional One Percent SEF Tax
Section 273 – Proceeds of the Tax on Idle Lands
Section 274 – Proceeds of the Special Levy

Chapter 8 – Special Provisions

Section 275 – General Assessment Revision; Expenses Incident Thereto

Section 276 – Condonation or Reduction of Real Property Tax and Interest
 Section 277 – Condonation or Reduction of Tax by the President of the
Philippines
Section 278 – Duty of Registrar of Deeds and Notaries Public to Assist the
Provincial, City or Municipal Assessor
Section 279 – Insurance Companies to Furnish Information
Section 280 – Fees in Court Actions
Section 281 – Fees in Registration of Papers or Documents on Sale of Delinquent
Real Property to Province, City or Municipality
Section 282 – Real Property Assessment Notices or Owner’s Copies of Tax
Declarations to be Exempt from Postal Charges or Fees
Section 283 – Sale and Forfeiture Before Effectivity of Code

Title III – Shares of Local Government Units in the Proceeds of National Taxes

Chapter 1 – Allotment of Internal Revenue

Section 284 – Allotment of Internal Revenue Taxes

Section 285 – Allocation to Local Government Units
Section 286 – Automatic Release of Shares
Section 287 – Local Development Projects
Section 288 – Rules and Regulations

Chapter 2 – Share of Local Government Units in the National Wealth

Section 289 – Share in the Proceeds from the Development and Utilization of the
National Wealth
Section 290 – Amount of Share of Local Government Units
Section 291 – Share of the Local Governments from any Government Agency or
Owned-and-Controlled Corporation
Section 292 – Allocation of Shares
Section 293 – Remittance of the Share of Local Government Units
Section 294 – Development and Livelihood Projects

Title IV – Credit Financing

Section 295 – Scope

Section 296 – General Policy
Section 297 – Loans, Credits, and Other Forms of Indebtedness of Local
Government Units
Section 298 – Deferred-Payment and other Financial Schemes
Section 299 – Bonds and Other Long-Term Securities
Section 300 – Inter-Local Government Loans, Grants, and Subsidies
Section 301 – Loans from Funds Secured by the National Government from
Foreign Sources
 Section 302 – Financing, Construction, Maintenance, Operation, and
Management of Infrastructure Projects by the Private Sector
Section 303 – Remedies and Sanctions

Title V – Local Fiscal Administration

Chapter 1 – General Provisions

Section 304 – Scope

Section 305 – Fundamental Principles
Section 306 – Definitions

Chapter 2 – Local and Other Special Funds

Article One – Receipts, Safekeeping and Disposition of Local Funds

Section 307 – Remittance of Government Monies to the Local Treasury

Section 308 – Local Funds
Section 309 – Special Funds
Section 310 – Separation of Books and Depository Accounts
Section 311 – Depository Accounts
Section 312 – Separation of Personal Money from Public Funds

Article Two – Special Accounts

Section 313 – Special Accounts to be Maintained in the General Fund

Chapter 3 – Budgeting

Article One – Local Government Budgets

Section 314 – Form and Content

Section 315 – Submission of Detailed Statements of Income and Expenditures
Section 316 – Local Finance Committee
Section 317 – Submission of Budget Proposals by Heads of Departments
Section 318 – Preparation of the Budget by the Local Chief Executive
Section 319 – Legislative Authorization of the Budget
Section 320 – Effectivity of Budgets
Section 321 – Changes in the Annual Budget
Section 322 – Reversion of Unexpended Balances of Appropriations, Continuing
Appropriations
Section 323 – Failure to Enact the Annual Appropriations
Section 324 – Budgetary Requirements
Section 325 – General Limitations
Section 326 – Review of Appropriation Ordinances of Provinces, Highly-Urbanized
 Cities, Independent Component Cities, and Municipalities within
the Metropolitan Manila Area
Section 327 – Review of Appropriation Ordinances of Component Cities and
Municipalities
Section 328 – Duration of Appropriation

Article Two – Barangay Budgets

Section 329 – Barangay Funds

Section 330 -