Republic of the Philippines

Bicol University
College of Law
Legazpi City

COURSE SYLLABUS

FOR
LOCAL GOVERNMENT FINANCE
(Elective Course)
2nd Semester, 4th Year Level

I. Course Description : This course seeks to instruct students in the specialized field of local
government finance, covering the power of taxation and other traditional
and non-traditional sources of revenues of local government units, and
the organizational structure governing fiscal administration. The course
will cover relevant constitutional provisions, the Local Government Code
and other related laws, rules and regulations.

II. Credit Units :2

III.Time Duration : 36 Hours

IV.Key Strategies

1. Socialized lectures
2. Graded Recitations
3. Case analysis

V. Course Requirements
1. Active participation in class discussions/recitations either in synchronous or
asynchronous modality
2. On time submission of projects ( case digest and case analysis)
3. Taking and passing the major examinations, short and long quizzes.

VI. System of computing grades

A. Quizzes - 30%
B. Recitation - 30%
C. Midterm/Final Exams - 40%
TOTAL 100%

VII. General objectives :

1. to provide a review on the law on public corporations;
2. to provide a review on the powers and attributes of Local Government Units, with a more focused
discussion on local autonomy;
3. To provide an in-depth discussion on the different sources of income of LGUs and the manner by
which they are utilized and accounted for;
4. To provide the students with an overview of the LGUs’ organizational structure in charge of fiscal
administration.

VIII. COURSE CONTENTS

A. GENERAL PRINCIPLES
1. Definition of public corporations
2. Difference of public corporations from private corporations and government-owned
and controlled corporations
3. Dual Characteristics of public corporations
4. Classes of public corporations
5. Cases:
- Liban vs. Gordon, G.R. No. 175352, January 18, 2011
- BSP vs. COA, G.R. No. 177131, June 7, 2011
- The Province of North Cotabato vs. Government of the Phil. G.R. No. 183591, October 14,
2008

B. MUNICIPAL CORPORATIONS
1. Elements
2. Dual Nature and Functions of Municipal Corporations
3. Municipal Corporations in the Philippines

C. CREATION AND DISSOLUTION OF MUNICIPAL CORPORATIONS

1. Authority to create
2. Requisites/limitations on the creation or conversion of municipal corporations
3. Beginning of corporate existence
4. Division and merger, abolition of local government units
5. De facto municipal corporations
6. Attack against the invalidity of incorporation
7. Cases:
- Serna vs. COMELEC, G.R. No. 177597, July 16, 2008
- Tan vs. COMELEC, 142 SCRA 727
- Padilla vs. COMELEC, 214 SCRA 735
- Grino vs. COMELEC, 213 SCRA 672
- Lopez vs. COMELEC, 136 SCRA 633
- Alvarez vs. Guingona, 252 SCRA 695
- Mariano vs. COMELEC, 242 SCRA 211
- Malabang vs. Benito, 27 SCRA 533
- Pelaez vs. Auditor General, 15 SCRA 569
- Municipality of San Narciso vs. Mendez, 239 SCRA 11
- Municipality of Candihay, Bohol vs. Court of Appeals, 251 SCRA 530
- Municipality of Jimenez, Misamis Occidental vs. Borja, 265 SCRA 182

D. LOCAL AUTONOMY OF MUNICIPAL CORPORATIONS

1. Local Autonomy: Its Concept, Extent and Limitations
2. Devolution, Decentralization and Deconcentration
3. Cases:
- Pimentel, Jr., vs. Aguirre, G.R. No. 132988, July 19, 2000
- City of General Santos vs. COA, G.R. No. 199439, April 22, 2014
- Limbona vs. Mangelin, G.R. No. 80391, February 28, 1989
- Imbong vs. Ochoa, G.R. No. 204819, April 8, 2014

E. GENERAL POWERS AND ATTRIBUTES OF MUNICIPAL CORPORATIONS (LOCAL

GOVERNMENT UNITS)
1. Powers in general: its sources, classification and execution
2. Governmental powers
- General welfare clause and its limitations(Sec. 16, R.A. No. 7160)
- Tano vs. Socrates, G.R. No. 119249, August 21, 1997
- Laguna Lake Development Authority vs. Court of Appeals, 251 SCRA 42
- Binay vs. Domingo, 201 SCRA 508
- Villacorta vs. Bernardo, 143 SCRA 480
- Matalin Coconut vs. Municipal Council of Malabang, Lanao del Sur, 143 SCRA 404
- Physical Therapy Organization of the Philippines vs. Municipal Board of Manila
 - Philippine Game Fowl Commission vs. IAC, 146 SCRA 294
- Dela Cruz vs. Paras, 123 SCRA 569
- Quezon City vs. Ericta. 122 SCRA 759
- Velasco vs. Villegas, 120 SCRA 568
- Ortigas vs. Feati Bank, 94 SCRA 533

3. Power of Eminent Domain (Sec. 19, RA 7160)

- Moday vs. Court of Appeals, 243 SCRA 152
- Municipality of Paranaque vs. V.M. Realty Corporation, 292 SCRA 676

4. Power to Generate and Apply Resources (Sec. 18, RA 7160)

F. SOURCES OF INCOME OF LGUs

1. National Tax Allotment

- Mandanas vs. Ochoa, G.R. No. 199802, July 3, 2018

2. Local Taxes
a. Real Property Taxes
b. Special Levies on Real Properties
- Special education fund tax
- Idle lands tax
- Special levy
c. Transfer Tax
d. Community Tax
e. Franchise Tax
f. Sand, gravel and other quarry resources tax
g. Business of printing and publication tax
h. Annual fixed tax for delivery trucks and vans
i. Professional tax
j. amusement tax
k. Barangay tax

3. Other fees and charges under the Local Government Code

4. Proceeds from sale and lease of property

G. ASSESSMENT, COLLECTION and UTILIZATION OF LOCAL INCOME

1. Collection of Taxes
a. Tax period and manner of payment
b. Accrual of tax
c. Time of payment
d. Surcharges and penalties
e. Interests on other unpaid revenues

2. Remedies of the Government

a. Local Government’s lien
b. Civil remedies
c. Distraint
d. Levy of real property
e. Advertisement and sale
f. Redemption of property sold
g. Judicial Action

3. Taxpayer’s Remedies
- Drilon vs. Lim, G.R No. 111249, August 4, 1994
- CocaCola Bottlers vs. City of Manila, G.R No. 156252, June 27, 2006
 - San Juan vs. Castro, G.R No. 174617, December 27, 2007
- PLDT vs. City of Balanga, CTA EB Case No. 413, June 2009

H. LOCAL GOVERNMENT FINANCE

1. Bureau of Local Government Finance

2. Local Finance Committee

IX. Reference

1. R.A. No. 7160

2. Related Supreme Court Decisions.

Prepared by:

ATTY. MARIETTA BELGICA-CLEDERA