SOUTHERN LUZON STATE UNIVERSITY

COLLEGE OF ADMINISTRATION, BUSINESS, HOSPITALITY AND ACCOUNTANCY

Academic Year 2022-2023

LOCAL AND REGIONAL GOVERNANCE

Supplemental Outline
Atty. Mark Christian B. Apordo

I. CONSTITUTIONAL PROVISIONS DEALING WITH LOCAL AND

REGIONAL GOVERNANCE
a. Section 4, Article X of the 1987 Philippine Constitution
i. Presidential Power of Supervision
1. Section 25 (a), LGC
a. Presidential Power over LGUs: Supervision only
i. Control vs. Supervision
1. Taule vs. Secretary Santos, G.R. No.
90336, 12 August 1991 [G.R. No. 90336
August 12, 1991 - RUPERTO TAULE v.
LUIS T. SANTOS, ET AL. : August 1991 -
Philipppine Supreme Court Decisions
(chanrobles.com)]
2. Province of Negros vs. COA, G.R. No.
182574, 28 September 2010 [G.R. No.
182574 (lawphil.net)]
ii. Doctrine of Qualified Political Agency
1. Carpio vs. Executive Secretary, 206
SCRA 290 (1991)
2. Oliveros-Torre vs. Bayot, 58 SCRA 262
(1974)
3. Section 17, Article VII
b. Local Government Units not attached to DILG
i. Radia vs. Review Committee, 157 SCRA 749
(1988)
c. Finance Secretary has no power to review LGU Tax
Ordinance
i. Estanislao vs. Costales, 196 SCRA 853 (1991)
ii. Sections 187, 194-196, 226-230 of the LGC
d. Power to Review of the DOJ
i. Drilon vs. Lim, 235 SCRA 135 (1994) [G.R. No.
112497 (lawphil.net)]
2. Section 29-30, 32 LGC
a. Governor’s Supervisory Powers
b. Governor’s Coordinative Powers
c. Sanggunian’s Power to Review
d. Governor’s Power to Review over Mayor’s Executive
Orders
e. Mayor’s Power of Review over Punong Barangay’s
Executive Orders
f. Purpose of Review
g. When Executive Order deemed valid
h. Mayor’s Supervision over Barangays
3. Section 56-57, LGC
a. Power of Review
 b. Ordinances and Resolutions, when submitted for
review
i. Ordinance vs. Resolution
1. Articles 107 and 108 of the IRR of LGC
c. Period for Review of Ordinances and Resolutions
d. Grounds to Invalidate Ordinance and Resolution
i. Moday vs. Court of Appeals, 268 SCRA 586
(1997)
e. Need to inform Sanggunian concerned on action
taken
i. Section 327, LGC
ii. Section 333, LGC
f. Review of Barangay Ordinances
g. Approval of Ordinances
h. Disapproval of Ordinances
ii. Section 447, LGC
iii. Section 268, LGC
iv. Meaning of General Supervision
1. Power to Discipline
a. Joson vs. Executive Secretary, 290 SCRA 279 (1998)
2. Power to Investigate
a. Planas vs. Gil, 67 Phil 62
b. Ganzon vs. Court of Appeals, G.R. No. 93252, 5
August 1991 [G.R. No. 93252 (lawphil.net)]

b. Section 5, Article X of the 1987 Philippine Constitution

i. LGU Power to create sources of revenue
1. Section 129, LGC
a. Tax Power sanctioned by Constitution
b. Tax Power subject to Congressional Limitations
i. Estanislao Case
ii. Villacorta vs. Bernardo, 143 SCRA 480 (1986)
1. Section 447 (a)(2) (x), LGC
iii. Basco vs. PAGCOR, 197 SCRA 52 (1991) [G.R.
No. 91649 (lawphil.net)]
1. Is it still applicable now?
iv. Yamane vs. BA Lepanto Condominium, G.R.
No. 154993. 25 October 2005 [G.R. No. 154993
(lawphil.net)]
v. Philippine Petroleum Corp. vs. Municipality of
Pililla, 198 SCRA 82 (1991) [G.R. No. 90776
(lawphil.net)]
vi. John Hay Peoples Alternative Coalition vs.
Lim, G.R. No. 119775, 24 October 2003 [G.R.
No. 119775 (lawphil.net)]
vii. Batangas Power vs. Batangas City, G.R. No.
152675, 28 April 2004 [Batangas Power Corp v.
Batangas City : 152675 : April 28, 2004 : J.
Puno : Second Division : Decision : April 2004
- Philipppine Supreme Court Decisions
(chanrobles.com)]
 viii. Manila Electric vs. Province of Laguna, G.R.
No. 131359, 5 May 1999 [G.R. No. 131359
(lawphil.net)]
ix. Petron vs. Mayor, G.R. No. 158881, 16 April
2008 [G.R. No. 158881 (lawphil.net)]
x. Smart Communications vs. City of Davao, G.R.
No. 155491, 21 July 2009 [G.R. No. 155491
(lawphil.net)]
xi. Smart Communications vs. City of Davao, G.R.
No. 155491, 16 September 2008 [G.R. No.
155491, September 16, 2008 - SMART
COMMUNICATIONS, INC., Petitioner, v. THE
CITY OF DAVAO, REPRESENTED HEREIN
BY ITS MAYOR HON. RODRIGO R.
DUTERTE, AND THE SANGGUNIANG
PANLUNGSOD OF DAVAO CITY,
Respondents. : September 2008 - Philipppine
Supreme Court Decisions (chanrobles.com)]
c. Tax Power Limited to Territory
i. Iloilo Bottlers Inc. vs. City of Iloilo, 164 SCRA
607 (1988)
d. Local Revenues for local use
e. Interpretation
i. Petron vs. Mayor Tiangco, G.R. No. 158881, 16
April 2008 [G.R. No. 158881 (lawphil.net)]
2. Section 130, LGC
a. General Principles governing Local Taxation
b. Uniform Taxation
i. Churchill vs. Concepcion, 34 Phil 969
c. Equitable/Progressive Taxation
i. Reyes vs. Almanzor, 196 SCRA 322 (1991)
d. Purely Local Taxes for LGU benefit
e. Progressive Taxation encouraged
3. Section 132, LGC
a. Taxing Authority: Sanggunian
b. Taxpayer
i. Commissioner of Internal Revenue vs. Procter
and Gamble, 204 SCRA 377 (1991)
1. Natural vs. Juridical Person
ii. Direct/Indirect Taxes
1. Commissioner of Internal Revenue vs.
Gomatco, 148 SCRA 36 (1987)
4. Section 133, LGC
a. Power to Tax Limited
i. Income Taxation
ii. Documentary Stamp Taxes
iii. Taxes on Estate, Inheritance, Gift, Legacy and
Other Acquisition by reason of death (Mortis
Causa)
iv. Customs Duties, Registration Fee of Vessels,
Tonnage Dues and Wharfage of Wharves
 v. Taxes, Fees and Charges on Goods brought into
or out of Territorial jurisdiction of Local
Governments
1. Section 143, LGC
2. Section 155, LGC
vi. Taxes, Fees or Charges on Agricultural or
Aquacultural Products sold by Marginal
Farmers and Fishermen
vii. Enterprise registered with Board of Investment
1. Limited Period
viii. Article subject to Excise Taxes under the NIRC
and Taxes, Fees or Charges on Petroleoum
Products
1. Province of Bulacan vs. Court of
Appeals, 299 SCRA 442 (1998)
ix. Percentage or VAT on Goods or Services except
as provided under the code
x. Transportation Contractor of Passenger and
Cargo
1. Section 143 (e), LGC
xi. Premiums Paid by Reinsurance or Retrocession
xii. Registration of motor vehicle except for
tricycles
xiii. Export Products
1. 143 (c), LGC
xiv. Countryside and Barangay Enterprise
1. RA 6810
xv. Cooperative
1. RA 6938, as amended RA 9520
xvi. Taxes, Fees or Charges of any kind on the
National Government, its agencies and
instrumentalities and the Local Government
Units
5. Section 200, LGC
a. Real Property Tax