Bureau of Local Government Finance Opinion

May 30, 2012 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully referred to the Municipal Treasurer of Siocon, Zamboanga del Norte thru the ICO-Regional Director, Bureau of Local Government Finance, Department of Finance, Region IX, F.S. Pajares Avenue, Oval Complex, Pagadian City, the herein letter dated April 25, 2012, of the Provincial Treasurer of same province, relative to the alleged inaction of the said Municipal Treasurer to remit the shares due the province from the real property tax collections of the municipality in CYs 2009 to 2011. It is alleged that all efforts exerted in claiming said tax shares were to no avail, and despite the letter dated January 18, 2012, of the Municipal Treasurer, promising to remit the real property tax shares of the province for the period December 2009 to December 2010, amounting to P1,012,532.06, on or before February 13, 2012; shares for the months of January to June, 2011, on or before March 13, 2012; and shares for the months of July to December 2011, on or before April 13, 2012. Relative thereto, attention is invited to Sections 271 and 272 of R.A. No. 7160, otherwise known as the Local Government Code of 1991, which provide: "SEC. 271. Distribution of Proceeds. The proceeds of the basic real property tax, including interest thereon, and proceeds from the use, lease or disposition, sale or redemption of property acquired at a public auction in accordance with the provision of this Title by the province or city or a municipality within the Metropolitan Manila Area shall be distributed as follows: DCHaTc "(a) In case of provinces: (1) Province Thirty-five percent (35%) shall accrue to the general fund; (2) Municipality Forty percent (40%) to the general fund of the municipality where the property is located; and xxx xxx xxx." "SEC. 272. Application of Proceeds of the Additional One Percent (1%) SEF Tax. The proceeds from the additional one percent (1%) tax on real property accruing to the SEF shall be automatically released to the local school boards: Provided, That in case of provinces, the proceeds shall be divided equally between the provincial and municipal school boards: Provided however, That the proceeds shall be allocated for the operation and maintenance of public schools, construction and repair of school buildings, facilities and equipment, educational research, purchase of books and periodicals, and sports development as determined and approved by the Local School Board." Furthermore, the remittance of the shares from the real property tax proceeds due the province shall be in accordance with the procedural requirements set forth under Section 36 of Commission on Audit (COA) Circular No. 92-382, dated July 3, 1992, as follows: "Sec. 36. Remittance of Collections to Other Government Units. Collections made by provincial, city, or municipal treasurers for other government units, shall be promptly remitted to the government units concerned. At least once a week, the accountant concerned shall prepare the disbursement vouchers covering such remittance and the supporting statements containing the complete descriptions of the collections being remitted. The disbursement vouchers and their supporting statements, duly certified by the accountant, shall be transmitted to the treasurer for certification as to availability of funds and forwarded to the local chief executive or the duly authorized official for approval. The disbursement vouchers and statements shall then be returned to the treasurer for the preparation of the checks to cover the remittances. The checks, duly approved or signed, each accompanied by a copy of the corresponding statements, shall be transmitted to the government units concerned. The remittances shall be acknowledged by the recipient government units by the issuance of official receipts." (emphasis supplied) Clearly, the remittance of the shares of the province from the real property taxes Basic and SEF collected by the component municipality is a statutory obligation of the latter, through the Municipal Treasurer. In view thereof, the Municipal Treasurer of Siocon is hereby directed to comply accordingly with the provisions of Sections 271 and 272 of the Local Government Code of 1991, observing COA Circular No. 92-382, as aforequoted. Finally, that level is likewise directed to inform the Municipal Treasurer concerned hereon, and report to this Bureau on the action taken within five (5) days from receipt hereof. ACDTcE (SGD.) SALVADOR M. DEL CASTILLO OIC-Executive Director