Bureau of Local Government Finance Opinion

December 14, 1998 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION The Sangguniang Barangay of Turno Dipolog City Gentlemen : This refers to Resolution No. 98-49 of that Sangguniang Barangay, requesting for the implementation of Article 362 of the Rules and Regulations implementing Section 271 of the Local Government Code of 1991 (RA 7160). It will be noted that the city government of Dipolog allegedly could not as yet implement the mandate of Article 362 for the reason that the City has not enacted a new tax ordinance pursuant to RA 7160. Hence, collection of the real property tax and distribution of the proceeds thereof, to the concerned barangays is on the percentage of 10% per barangay based on the old ordinance of the city. Meantime, a request to the Sangguniang Panlungsod for the enactment of a new city tax ordinance remains unheeded. In this connection, Section 529 under the Transitory Provisions of the Code provides: "SEC. 529. Tax Ordinances or Revenue Measures . All existing tax ordinances or revenue measures of local government units shall continue to be in force and effect after the effectivity of this Code unless amended by the sanggunian concerned, or inconsistent with, or in violation of, the provisions of this code." On the basis of the foregoing provisions of the Code, the City of Dipolog may only distribute the proceeds from the collection of real property taxes to the different barangays, particularly barangay Turno in accordance with the approved rates provided for under the old ordinance which is 10%. There is a need, therefore, to enact a new tax ordinance for the granting of the 70% and 30% sharing scheme for the city and barangays respectively before the barangay shares could be increased to thirty percent (30%). It is hoped that this clarifies matters. EHACcT Very truly yours, (SGD.) ANGELINA M. MAGSINO Deputy Executive Director Officer-in-Charge