BERIDO, SHEENA MARIE G.

BSREM 1YR SEM1

Enumerate and discuss the sources of Revenue of LGU's

Local Government Units (LGUs) in the Philippines have various sources of revenue to fund
their operations and deliver public services. In addition to real property tax, business tax, non-
tax revenues from fees and charges, receipts from government business operations, and
proceeds from the sale of assets, here are some other significant sources of revenue for LGUs:

1. Local Business Taxes: LGUs can impose various local business taxes on establishments
operating within their jurisdiction, such as local franchise taxes, amusement taxes, and other
business-related levies.

2. Local Service Taxes: These include taxes on professional services, business permits, and
other services provided within the locality.

3. Local Income or Revenue Taxes: Some LGUs may levy income or revenue taxes on
individuals or entities operating within their jurisdiction.

4. Share in National Taxes: LGUs receive a portion of the national taxes collected by the
national government, as mandated by the Local Government Code of the Philippines. This
includes the Internal Revenue Allotment (IRA).

5. Special Education Fund: LGUs collect a special education fund tax, which is primarily used
for the improvement of public schools within the locality.

6. Local Regulatory Fees: These include fees for permits, licenses, and clearances for various
activities and businesses.

7. Local Economic Enterprise Income: LGUs can generate revenue through the operation of
local government-owned and controlled corporations, utilities, and other businesses.

8. Grants and Donations: LGUs may receive grants and donations from both government
agencies and private entities to support specific projects or initiatives.

9. Local Development Fund: Some LGUs have established local development funds to finance
development projects and investments.

10. Environmental Fees: Fees related to environmental protection, such as fees for waste
disposal and environmental clearances.

11. Real Property Transfer Tax: LGUs collect fees on the transfer of real properties through
sale, donation, or other means.

12. Community Tax (Cedula): Local governments collect community tax or cedula from
residents as a requirement for various transactions and certifications.

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