INCOME POPULATION LAND AREA APPROVING BODIES

250,000 Congress
PROVINCE PHP 20,000,000.00 2,000 sq. km
PHP 100,000,000.00 (20 M
CITY based on 2000 constant 150,000 100 sq. km Congress
prizes)
HIGHLY URBANIZED CITY PHP 50,000,000.00 200,000   Congress
MUNICIPALITY PHP 2,500,000.00 25,000 50 sq. km Congress/ ARMM
BARANGAY   2,000   Congress/ ARMM
-Metropolitan   5,000   Congress/ ARMM

Evaluation of the qualification of the recommendees for Local Treasurers

1. Performance Rating
2. Work Experience
3. Education
4. Eligibility
5. Relevant training
6. Rank

Duties and Responsibilities of the Local Treasurer

1. Collection of Local Revenues
2. Collection of RPT
3. Custody and requisition of accountable forms
4. General functions provided for under the LGC 1991
5. Specific functions
 Certify as to the availability of funds
 Implement tax collection and enforcement program
 Prepare and submit reports
 Certify RPT delinquencies remaining uncollected
 Examine the books of accounts and pertinent records of businessmen
 Submit certified statement covering income and expenditures
 Issue a certified statement covering actual income
 Keep full sets of secondary standards for use in the testing of weights and measure
 Register in a book all branded and counter branded animals.
 See to it that payment of a business is not avoided through simulation of the retirement thereof and
recommend to the mayor for the disapproval of the application for the termination or retirement of
the business
 Attend sessions of the sanggunian
 Exercise such other powers and functions and perform such other duties and responsibilities

Specific roles of the local treasurer in the enactment/ amendment of Revenue Ordinance of LGUs
1. Update on the Tax information system
2. Advise on the adequacy of taxes, fees and charges
3. Advice on continued relevance of certain impositions
4. Update on the adjustment of fees and charges
5. Dissemination of tax ordinances and revenues measures

Role of the Local Treasurer in the collection of delinquent Local taxes, Fees, charges and related surcharges
1. Posting of notice of delinquency in the payment of Real Property Tax
2. Issuance of a duly authenticated certificate for the distraint of Personal Property for the collection of
delinquent local taxes, fees or charges and related surcharges and interest
3. Advertisement and sale of delinquent property
4. Issuance of a certified statement of delinquency to the courts

*************************************************************************************************

Income classification of LGU shall be updated within 6 months

Designation od OIC/ICO shall be for a period of 6 months with a maximum of 2 years extension unless sooner revoked.
Designation and extensions shall be processed by the Regional Office within 15 Days before the expected temporary/
permanent vacancy, except if caused by sudden illness, death or absconding of the incumbent.
Confirmation of designation shall be acted upon by the Executive Director, BLGF within 15 days from receipt, otherwise,
designation id deemed approved.
OFFICER-IN- CHARGE (OIC)- designated in a temporary capacity to discharge fully the powers and responsibilities of the head
of the Local Treasury Office, with the same rights and prerogatives of the latter, except the right to receive the salary.
IN-CHARGE OF OFFICE (ICO)- designated to discharge the duties and functions of the head of the Local Treasury Office in a
caretaker capacity and with certain limitations of the powers, authority and prerogatives normally exercised by the head of
the office.
Assistant Treasurer who automatically assumes as ICO shall notify the BLGF regional Director within 24 hours thru the
Provincial Treasurer of the absence, sickness, death or other incapacity of the regular incumbent. Within 48 hours, Regional
Director shall issue the Order of Designation of the Assistant Treasurer as the OIC/ICO.
Barangay Treasurer shall be appointed by the Punong Barangay with the concurrence of the majority of sangguniang
barangay members. Appointment shall be subject to attestation by the CSC.
Performance Rating shall be based on the 2 Performance Ratings of the recommendees which should at least be VERY
SATISFACTORY.
Work Experience shall be either in the local treasury or accounting services for at least 5 years for Provincial and assistant
Treasurer and 3 years for municipal and assistant Treasurer.
Education- Commerce, Public Administration or Law.
Eligibility- First grade civil service eligibility or its equivalent.
Relevant Training- successful completion of training courses, scholarships, training grants and other relevant to the duties and
functions of the position.
Rank- hierarchy of the vacant position in the organization/ office/ unit.
DETAIL- the movement of an employee from one department/agency to another which is temporary in nature. Does not
include reduction of rank, status or salary. Does not require the issuance of another appointment. Detailed Employee receives
his salary ONLY from his mother agency/unit.
No Detail or assignment shall be made within 3 months before any elections.
A local treasurer who is reinstated after having been illegally dismissed shall be given comparable compensation in an amount
not exceeding 5 years salary. In case of death of a respondent treasurer, his heir is entitled to all benefits due to him,
together with his unpaid salaries from date of suspension to date of death.
Absence of a treasurer/ AT is considered service in regular course if:
o Witness in a criminal case- if Treasurer/ AT is required by lawful authority to render service as a witness, he shall be
entitled to his salary. In case of Trial or hearing outside LGU, he shall automatically be on Official Travel and shall be
entitled to actual per diem of travel expenses.
o Witness in his own behalf in a criminal/ administrative case- if case is a direct result of an act performed by him in
connection with his official duties, ABSENCE IS CHARGED TO HIS LEAVE. Otherwise, HE IS NOT ENTITLED TO HIS
SALARY.
o Witness in a civil case between two private parties, and in which the Government has no interest - If the civil case
between 2 private companies do not affect the interest of the government, IT IS NOT CONSIDERERD SERVICE. If
witness testifies on a case from facts acquired in his official capacity and the distance between his place and the place
of train is less than 50 kilometers, his appearance shall be CONSIDERED SERVICE IN DUE COURSE, but the place where
it pertains shall collect witness’ fees for his appearance under the conditions prescribed by the Rules of Court.
All applications for leave of absence, and VL of assistant treasurers for a period exceeding 15 days shall be approved by the
BLGF Regional Director, copy furnished BLGF central office. Leaves for a period of 15 days and below, shall be approved by the
Local treasurer, copy furnished BLGF Regional Director. If intended to leave the country, leave application shall be approved
by the Department of Finance, regardless of the duration.
Local treasurer/ AT who has accumulated at least 15 days VL credits shall be allowed to monetize a minimum of 10 days,
provided that the 5 days is retained after monetization and a maximum of 30 days may be monetized in a given year.
Some cases where there is a valid and justifiable reason, the local treasurer/ AT may be allowed to monetize 50% or more of
his accumulated VL/SL credits. It shall be upon the recommendation of the LCE.
All taxes shall be collected by Local Treasurers. Provincial, C/M treasurer may designate barangay treasurer as his deputy to
do so. In case a bond is required for the purpose, the P and C/M treasurer shall pay for the premiums thereon.
Collection of RPT with interest thereon and related expenses and enforcement of remedies in applicable laws shall be a
responsibility of the C/M treasurer concerned. C/M treasurer may deputize barangay treasurer to collect taxes on RPT
located in the barangay.
Treasurer shall be the custodian of all accountable forms requisitioned by the LGU. He shall maintain a complete record of the
receipt, issue and transfer of which.
 Collectors/ Tellers shall file requisition and accountable forms for their use with the treasurer through a REQUISITION and
ISSUE SLIP. No transfer of accountable forms between collectors.
The treasurer shall accomplish and submit quarterly report of Statement of Income and Expense (SIE) and prepare and submit
daily report of collections with supporting documents.
The C/M treasurer of his deputy shall prepare a certified list of all RPT delinquencies w/c remained uncollected or unpaid for
at least 1 year.
The records of the Revenue District Office of the Bureau of Internal Revenue shall be made available to the local treasurers,
his deputy. Duly authorized representative.
The local treasurer shall submit to the LCE, on or before July 15 of each year a Certified Statement covering Income and
Expenditures of the preceding fiscal year, the Actual Income and Expenditures of the first 2 quarters of the current year and
Estimated Income and Expenditures for the last 2 quarters of the current year.
All Statement of Income and Expenditures shall be jointly certified by the Local Treasurer and Local Accountant.
On or before September 5 of each year, C/M treasurer and 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.
Barangay treasurer shall submit to PB a Statement covering Estimates of Income and Expenditures for the past, current and
ensuring fiscal year every on or before September 15. PB will then prepare the budget then submit it to the Sangguniang
Barangay for enactment.
On cattle registration, original registry entry and certificate of ownership shall be signed by the owner and the Municipal
Treasurer, and attested to by the Municipal Secretary (sec. 517, Revised Admin Code ). There should always be an issued
certificate of transfer in every transfer of large cattle. This must show the name and residence of the owner, name and
residence of the buyer, purchase price, identification marks of the animal and the reference to the original certificate of
ownership by number and the name of municipality w/c issued the certificate.
The Local Treasurer, when required and upon prior approval of the LCE, shall attend the session of the sanggunian.
A local treasurer shall exercise other powers and functions and perform other duties and responsibilities such as Withholding
agent of BIR, GSIS, Pag-ibig, Philhealth and MMDA. Deputies of the NGA to collect fire fee and alien registration fees. Member
of local committees and boards such as: LFC (sec 316, LGC), BAC (RA 9184/ sec. 364, LGC), Local prequalification, BAC (Local
PBAC) (sec 37, LGC), Local School Boards (sec 98, LGC), Appraisal Committee, duties and functions under the Omnibus Election
Code.
LGC 1991 allows the rate of taxes to be adjusted only once every 5 year, however, there is no prohibition for such adjustment
insofar as fees and charges are concerned. Rate of fees and charges need to be adjusted regularly to offset the inflation.
The Local Treasurer’s duty is to update and/or advise the LCE and the sanggunian on the matters concerning LGU funds- its
sources and disbursements.
In the case of levy on Real property as an administrative remedy resulting from delinquency, the local treasurer shall prepare
a duly authenticated certificate with the name of the taxpayer and the amount of the tax, fee/charges and penalty due to him.
Said certificate shall operate with the force of a legal execution throughout the Philippines. a written notice of the levy shall be
mailed to or served upon the Assessor and Registrar of deeds of the province/city where the property is located and to the
delinquent taxpayer.
Within 30 days after levy, the property or a usable option thereof shall be publicly advertise for sale or auction. Such
advertisement shall cover a period of at least 30 days. If the taxpayer fails to pay penalties, the sale shall proceed. After 30
days after the sale, local treasurer shall make a report of the sale to the sanggunian concerned, he shall make and deliver to
the purchaser a certificate of sale (proceedings of the sale, describe the property sold, stating the name of the purchaser and
setting out the exact amount of all taxes etc... Any excess in the proceeds of sale shall be turned over to the owner of the
property.
In the case of collection of RPT. Any other tax through the courts, Local treasurer shall furnish the Provincial attorney or city/
municipal legal officer a certified statement of delinquency. Within 15 days after receipt, the legal officer shall file the civil
action in the name of the province, city/municipality in the proper court of competent jurisdiction.
If Delinquent tax is Proper Court
 ₱10, 000 Municipal/ City Trial Court
 More than ₱10,000 Regional Trial Court (Art 357 IRR, LGC)
Local Finance Committee (LFC) shall be composed of the Local Planning and Development officer, Local Budget Officer and the
Local Treasurer.

Local School Boards Composition

Provincial School Board
Governor, division superintendent of schools as co- chairmen, chairman of the education
committee of the sanguniang panlalawigan, provincial treasurer, representative of pederasyon ng
mga sanguniang kabataan and the sanguniang panlalawigan, duly elected president of provincial
federation of PTA, duly elected representative of the Teacher’s organizations in the province and
the duly elected representatives of the non-acad personnel of the public schools in the province.

City School Board
Municipal School Board
City mayor, city superintendent of schools as co-chairmen, chairman of the education committee
of the sanguniang panglungsod, city treasurer, representative of pederasyon ng mga sanguniang
kabataan and the sanguniang panglungsod, duly elected president of city federation of PTA, duly
elected representative of the Teacher’s organizations in the city and the duly elected
representatives of the non-acad personnel of the public schools in the city as members.
Municipal Mayor, district supervisor of schools as co-chairmen, chairman of the education
committee of the sanguniang bayan, municipal treasurer, rep. from the pederasyon ng mga
sanguniang kabataan in the sanguniang panglungsod, duly elected president of municipal
federation of PTA, duly elected representative of the Teacher’s organizations in the municipality
and the duly elected representatives of the non-acad personnel of the public schools in the
municipality, as members.

Performance of the duties and responsibilities of the officials in their respective local school boards shall not be delegated.
There shall be in every province, city/ municipality a Committee on Awards to decide the winning bids and questions of awards
on procurements and disposal of property.
COMPOSITION OF THE COMMITTEE ON AWARDS
 Local Chief Executive- Chairman
 Local treasurer- member
 Local Accountant- member
 Local Budget Officer- member
 General Services Officer- member
 Head of office/department for whose use the supplies are being procured- member
 If the head of office/department would sit in a dual capacity, a member of the sanggunian elected from
among its member shall sit as a member. COMMITTEE on AWARDS at the barangay level shall be the
sangguniang barangay.
 NO NATIONAL OFFICIAL SHALL SIT IN AS MEMBER OF THE COMMITTEE ON AWARDS
COMPOSITION OF BAC (Bids and Awards Committee)
1. Representatives from each of the regular of offices under the office of the LCE such as but not limited to:
 Offices of the Administrator
 Budget Officer
 Legal Officer
 Engineering Office
 General Services Office
 End user office shall always be represented in the BAC. BAC members shall be at least 5 but not more than 7 and who
shall be personnel occupying plantilla positions of the LGU. LCE shall designate the members of BAC who shall elect
among themselves the Chairman and Vice- Chairman. THE LCE AND/OR APPOINTING AUTHORITY SHOULD NEVER BE
THE CHAIRMAN OR MEMBER OF THE BAC.
 BAC shall prepare the procurement monitoring report in the Annual Procurement Plan (APP), ongoing or completed,
costing ₱50 M and above for Goods and Infrastructure projects and ₱5 M and above for consulting services. The
report shall be approved by the head of the procuring entity and submitted to the Government Procurement Policy
Board (GPPB) in printed and electronic format within 10 working days after the end of each semester.
 GPPB is an inter-agency board created under the Government Procurement Reform Act or RA 9184, chaired by Sec.
of the DBM to formulate and amend the IRR
There shall always be Prequalification, Bids and Awards Committee (PBAC) in every province, city/ municipality responsible for
the conduct of prequalification of contractors, bidding, evaluation of bids, and the recommendation of awards concerning local
infra projects.
 Governor or Mayor – Chairman
 Chairman of the appropriation committee of the sanggunian concern
 Representative of the minority party in the sanggunian concerned, if any, or 1 chosen by said sanggunian
from among its members
 Local treasurer
 2 representatives of non-governmental Organizations represented in the local development council
concerned chosen by the organizations themselves
 Any practicing CPA from the private sector designated by the local chapter of the PICPA (sec 37, LGC)
City and municipal treasurers shall act as Vice-Chairman in City/Municipal Board of Canvassers w/c shall canvass election
returns coming from the polling places within its jurisdiction (sec 2 (d), Omnibus Election Code)
Local Treasurers are mandated in the Omnibus Election Code to participate in the election in the ff capacities:
1. Custodianship of ballot boxes and election paraphernalia
2. Preparation of Emergency Ballots
 3. Record of quality and serial numbers of Official ballots and Election Returns
4. Verification and distribution of official ballots and election returns
5. Certification of serial number of election returns
6. Delivery to and preservation of key to ballot box by the provincial treasurer- after the counting of the
votes, the used ballots, unused ballots, tally board/sheet, copy of the election returns and the minutes of proceedings of
the Board of Election Inspectors shall be placed in the ballot box. It should be locked with 3 padlocks and the keys shall be
placed in separate envelopes, sealed and signed by all members of the board. Said envelopes shall be delivered by a
COMELEC representative to the ff: Provincial Treasurer, Provincial Fiscal and Provincial Election Supervisor who are to
keep it for 3 mos. following the election. After which, the Provincial Election Supervisor and Fiscal shall deliver to the
Provincial Treasurer the envelopes under their custody.
7. Delivery, preservation and disposition of ballot boxes- all ballot boxes, supplies of the BEI and pertinent papers and
documents shall immediately be delivered by the BEI and the watchers to the city/municipal treasurer. The day after
election, whoever fails to send these objects will be required to deliver the same immediately to the local treasurer who
shall acknowledge the receipt thereof in detail. The local treasurer shall keep the ballot boxes under their responsibility
for 3 months and stored unopened in a secured place. After which, the COMELEC may authorize the LT in the presence of
its representative to open the boxes and burn their contents, except the copy of minutes of the voting and the election
returns deposited therein w/c they shall keep.
8. Membership in the municipal board of canvassers
COMPOSITION:
 Election Registrar or COMELEC representative- Chairman

MEMBERS:

 Municipal Treasurer
 District supervisor/ any public-school principal
 One representative from each of the ruling party and the dominant opposition political
party entitled to be represented
9. Delivery and transmittal of election returns
10. Safekeeping of transmitted election returns- board of canvassers shall keep the ballot boxes containing the
election returns in a safe and secured room before and after canvass. The door must be padlocked by 3 locks
with the keys kept as follows:
 Chairman
 Representative of the ruling party
 Representative of the dominant opposition party
11. Canvass by the Board of Canvassers- BOCs shall meet not later than 6 o’clock in the afternoon of election day
at the place designated by the COMELEC to receive 7the election returns and immediately canvass those
received. Subject to reasonable exceptions, the BOCs must complete their canvass within:
 Municipalities- 36 hours
 Cities- 48 hours
 Provinces- 72 hours
 Violation hereof shall be an election offense punishable with imprisonment of not less than 1 year but not
more than 6 years, subject to probation. The guilty party shall suffer disqualification to hold public office and
deprivation of the right of suffrage.
Fidelity Bond- Bureau of Treasury Order No. 01-95
Due care should be exercised in accomplishing the REQUEST FOR BONDING (Gen Form No. 57 (a)) and the application for Bond
(Gen Form No 58 (a))

PROCEDURE OF BONDING
 Notice to the Bureau of the Treasury- notification from LGU to fiscal examiner IV of BOT
 General form No. 57 (a) – should be accomplished in 3 copies. Request for bonding.
 General form No. 58 (a)- should be accomplished in 4 copies with 3”x 4” ID
 Endorsement to the Bureau of Treasury- General form No. 58 (a) shall be endorsed by the head of office to
the Fiscal Examiner IV of BOT together with Gen. Form No. 57 (a) for approval.
o Attachments:
 Sworn statement of assets and liabilities as of date of application
 Latest approved appointment to bondable position
 Office order/ designation if the position of applicant id not bondable
 Proof of payment of bond premium deposited with an authorized government depository bank
 Bonding for the Barangay treasurer- bondable in the amount of not exceeding ₱10, 000. Premiums shall be
paid by the barangay. Shall be bonded with the fidelity bond immediately upon assumption of office.
The amount of bond for cash accountability of 2,000-9,000 is equivalent to 75% of maximum cash accountability and bond
premium shall not be less than ₱100.
For Cash tickets, Cattle Registration Certificates and Marriage Certificates, 10% of their total value rounded off to the nearest
hundredth.
An official/employee who has both money and property accountability, shall be bonded only once to cover both
accountabilities. The amount of bond shall be in accordance with the schedule, provided however, that the amount of bond
does not exceed 5 Million Pesos.
A bond is personal and therefore not transferable.
If an accountable officer/employee who is no longer accountable by any reason shall submit immediately a request for
cancellation of bond using Gen. Form No. 57 (a) (items 14-18 only) to the Fiscal Examiner IV of the BOT in the province/region
where the officer is.
When a bonded official is adjudged unsafe and considered conservative risk by the Fiscal examiner IV of the BOT, he shall be
reported to the head of LGU concerned who shall cause the removal or relief of the official from duties requiring bond. The
decision may be appealed to the Treasurer of the Philippines through the Regional Director of the BOT whose decision is final.
No bonded official/employee shall be given clearance by the LGU from money and property accountability w/out proof of
bond cancellation.
All bond premia collected by the BOT shall constitute the Fidelity Fund.
Fidelity Fund shall answer for deflations, shortages and unrelieved accountability after all possible means of recovery of the
amount from the accountable official/employee have been exhausted or his insolvency is declared by a competent court. It
shall be available for the payment of court fees incident to civil proceedings to recover the sum lost.
Fidelity Fund shall not be used for/to:
o Replace fines imposed on bonded officials/employees as a result criminal conviction for violation of the Revised Penal
Code/ penal Law
o Answer the liability of a bonded official/employee convicted of estafa through falsification of public documents in his
capacity as private individual.
o Refund the accountability of a bonded official/employee found short in accountability but not removed/relieved of
the duties.
Any/all claims against the Fidelity fund together with all the evidences relating thereto shall be filed with the Regional Director
of the BOT who shall recommend appropriate action to the Treasurer of the Philippines. Approval of a claim shall constitute a
legal claim against the Fidelity Fund.
ONLY APPROVAL CLAIMS SHALL BE PAID FROM THE LFIDELITY FUND.

BOOK TWO

INCOME- all revenues and receipts collected/received forming the gross accretions of funds of all LGUs.
Each LGUs shall exercise its power to create its own sources of revenue and to levy taxes, fees and charges subject to the
provisions of LGC 1991. LGUs do not have the inherent power to tax, except such power as may be delegated to them by law
(1987 constitution through RA 7160)
The power to impose a tax, fee or charge or to generate revenue under the LGC 1991 shall be exercised by the sanggunian of
the LGU concerned through an appropriate ordinance.
FUNDAMENTAL PRICIPLES governing the exercise of the taxing and other revenue-raising powers of LGUs
Taxation shall be uniform in each LGU ( sec 130 (a), LGC)- Equality and uniformity in local taxation means that all taxable
articles/kinds of property of the same class shall be taxed at the same rate within the territorial jurisdiction of the
taxing authority/ LGU.
UNIFORMITY- required only within the geographical limitation of the taxing authority (within the territorial
jurisdiction of a province, city, municipality or barangay).
TAX- considered uniform when it operates with the same force and effect in every place where the subject
may be found.
 Where the statute/ordinance applies equally to all persons, firms and corporations placed in similar
situations, there is no infringement (breach) of the rule to EQUALITY. INEQUALITIES resulting from singling out
of one particular class for taxation and exemption infringe NO CONSTITUTIONAL limitation.
 Uniformity is not equivalent to equality in taxation. Uniformity is essential to the valid exercise of the power
of taxation and does not require identity or equality under all circumstances, or negate the authority to
classify the object of taxation.
Taxes, Fees, Charges and other impositions shall be:
 1. Equitable and based as far as possible on the taxpayer’s ability to pay
EQUITABILITY is characterized by equity. Being fair to all concerned and without prejudice, favor/vigor
entailing undue hardship. FAIRNESS best describes equitable.
 If the tax is excessive, when the tax discriminates aside from violating the rule of uniformity and if
the tax is in restraint of trade, IT IS NOT FAIR!
 Taxpayer’s ability to pay must be considered. it must be the basis of taxation, as far as predictable. It
cannot be absolute or cannot be based on a hard and fast rule.
 PROGRESSIVE SYSTEM OF TAXATION- the more you earn, the more tax you pay/ tax rate increases
as the tax base increases. Shall evolve in each LGU.
2. Levied and collected only for public purposes
3. Not be unjust, excessive, oppressive or confiscatory. TAX should be reasonable.
4. Not be contrary to law, public policy, national economic policy, or in restraint of trade.
Collection of local taxes and other impositions shall in no case be let to any private person.
“Entrusting the collection of the fees to a private person does not destroy the public purpose of the
ordinance, so long as the purpose is public, it does not matter whether the agency through which the money
is dispensed is public or private." -Supreme Court-
Revenue collected pursuant to the provisions of the LGC shall inure (toughen) solely to the benefit of, and subject to
disposition by the LGU levying the tax and other impositions. In no case can the National Government share in local
taxes even if provided by law. Constitutions provides that local taxes, fees and charges shall accrue exclusively to the
LGUs.
PROCEDURAL REQUIREMENTS FOR A VALID REVENUE ORDINANCE- conduct of public hearing shall be governed by:
1. Pre- Publication or Posting- within 10 days from the filing of the proposed tax ordinance or revenue measure, the
same shall first be published for 3 consecutive days in a newspaper of local circulation or shall be posted
simultaneously in at least 4 conspicuous places (municipal halls, plazas, brgy. halls, public markets, churches and other
public places where constituents converge) within the territorial jurisdiction of the LGU concerned.
2. Written Notice to Interested or Affected Parties- sanggunian concerned shall cause the sending of which.
Information must reach those that shall be directly affected by the imposition. The Notice/s shall specify the date/s
and venue of the public hearing/s.
3. Public Hearing
a) Initial public hearing shall be held not earlier then 10 days from the sending out of notice/s or last day of
publication, or date of posting whichever is later.
b) Shall not be conducted prior to the enactment of the tax ordinance or revenue measure.
c) All affected/interested parties shall be accorded an opportunity to appear and present or express their views,
comments and recommendations and such public hearing/s shall continue until all issues have been presented
and fully deliberated upon and/or consensus is obtained.
d) Deliberation of hearing/s shall serve as inputs to the members of the sanggunian after consideration, they may
modify, pass or suspend judgement on the issue.
e) No tax ordinance/ revenue measure shall be enacted/approved in the absence of a public hearing duly conducted
in the manner herein prescribed.
4. Preparation of minutes- prepared by the secretary of the sanggunian concerned attaching the position papers,
memoranda and the like submitted by the participants. Proceedings must be properly documented.
5. Approval- every ordinance presented by the sanggunian shall be presented to the LCE as the case may be. If
approved, the LCE shall affix his signature on every page thereof.
-LCE may veto any ordinance of the sanggunian on the ground that it is ultra vires (prejudicial to the public
welfare) stating the reason and return the same to the sanggunian.
-VETO shall be communicated by the LCE concerned to the sanggunian within 15 days in the case of a province
and 10 days for city/municipality, otherwise ordinance shall be deemed approved.
-LCE may VETO an ordinance/resolution only once.
-Sanggunian concerned may override the veto of the LCE by 2/3 vote of all its members.

6. Publication of Tax Ordinances and Revenue Measures- 10 days after approval, certified true copies of tax
ordinances/revenue measures shall be published in full 3 consecutive days in a newspaper of local circulation or be
posted in at least 2 conspicuous and publicly accessible places. If ordinance/measure contains penal provisions, the
gist of such shall be posted/published in the same places mentioned above.
SUBSTANTIVE REQUIREMENTS FOR A VALID REVENUE ORDINANCE
 Must not contravene the constitution of any statute
 Must not be unfair or oppressive
 Must not be partial or discriminatory
  Must not prohibit but may regulate trade
 Must be generally consistent with public policy
 Must not be unreasonable
STEPS IN THE REVIEW OF TAX ORDINANCES OR REVENUE MEASURES
 Revenue Measure of component cities/municipalities- reviewed by sangguniang panlalawigan
 Ordinances of barangays- reviewed by the sangguniang panlungsod/bayan
a. Review of component city/municipality ordinances or Resolutions by the sangguniang panlalawigan
i. 3 days after the approval, SPLD/SBN shall forward it to sangguniang panlalawigan for review
Legend:
ii. Within 30 days, SPLN shall examine documents and transit them to the provincial
SPLD- sangguniang attorney/prosecutor who shall inform the SPLN in writing of his comments/recommendations within
panglungsod 10 days.
SPLN- sangguniang iii. If SPLN finds that ordinance/resolution is beyond the power conferred upon the SPLD /SBN, he shall
panlalawigan declare such as invalid in whole or in part and shall enter his actions in the minutes and advise the
SBN- Sanguniang corresponding city/municipality authorities of the action.
bayan iv. The review of the SPLN is limited to determining the legality thereof or if the same exceed the
SBY- sangguniang
powers conferred by law. Exceeding such power id ULTRA VIRES and amounts to usurpation of the
barangay legislative functions of the city/municipal councils
v. Review by the SPLN is legislative check in nature and a measure which provincial government
exercises its power of general supervision over component units
vi. If no action taken by the SPLN within 30 days after submission of the ordinance/resolution it shall be
presumed valid.
vii. Declaration of invalidity of the ordinance is equivalent to disapproval
viii. Signature by the governor is required in relation to the resolution adopted by the SPLN, approving
and disapproving the ordinance/resolution by the SBN/ SPLD.
b. Review of barangay ordinances by the sangguniang panlungsod/bayan
i. 10 days after enactment, SBY shall furnish copies of all barangay ordinances to SPLD /SBN for review
ii. If SP/SB fails to take action on within 30 day from receipt, it shall be deemed approved
iii. If ordinances are found inconsistent with law or city/municipal ordinances, the sanggunian
concerned shall return the same with its comments and recommendations to the SBY within 30
days.
Appeal on the Legality and Constitutionality of an ordinance may be made to the Secretary of Justice or to the regular courts.

APPEAL TO THE SECRETARY OF JUSTICE- any question on the constitutionality/legality of tax ordinances or revenue measures
may be raised on appeal within 30 days from effectivity to the Secretary of Justice who shall render a decision within 60 days
from the date of receipt of the appeal (shall not have the effect of suspending the effectivity of the ordinance and the accrual and payment of the
tax, fee, or charges levied therein)

-Extends only to the determination if the ordinance is constitutional/legal. The secretary shall neither substitute his own
judgement nor replace the same with another version. This appeal is one of supervision and not of control.

-The decision of the secretary can be further appealed to the president.

APPEAL THROUGH THE COURTS- within 30 days after receipt of the decision or the lapse of the 60-day period w/out Secretary
of Justice acting upon the appeal, the aggrieved party may file appropriate proceedings with a court of competent jurisdiction.

In violation of tax ordinances, LGU is authorized to prescribe fines which cannot be less than ₱1,000 or more than ₱5,000;
imprisonment cannot be less than 1 month or more than 6 months. Fines and penalties shall be imposed at the discretion of
the court. SBY may prescribe a fine not less than ₱100 and not more than ₱1,000.
Enforcement of any tax ordinance/revenue measure after due notice of the disapproval/suspension shall be sufficient ground
for ADMINISTRATIVE DISCIPLINARY ACTION against Local officials/employees responsible thereof.
LGUs do not have the inherent power to tax, it belongs to the STATE. STATE may delegate this power through legislation
through RA 7160. The power to impose tax, charges and to generate revenue shall be exercised by the sanggunian of the LGU.
Municipalities within the Metropolitan Manila Areas may levy taxes at rates which shall not exceed 50% the maximum rates
prescribed for tax on business. In case of the basic RPT, Municipalities in these areas may fix a uniform rate not exceeding 2%
of the assessed value of real property.