Bureau of Local Government Finance Opinion

January 18, 2000 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 2nd Indorsement Respectfully returned to the Regional Director for Local Government Finance, Region VII, 3rd Floor, BF Building, N. Escario Street, Cebu City, the herein preceding indorsement relative to the letter dated June 15, 1999 of the In-charge of Office, City Treasurer's Office, Dumaguete City inquiring whether or not a barangay is entitled to full exemption of taxes in a fund raising activity done outside of its jurisdiction. It is represented that the Sangguniang Barangay of Barangay I Tinago, said city, held a special cockfighting last April 30 and May 1, 1999, as one of the highlighted activities in celebration of their annual barangay fiesta. The conduct of said activity was done at the Dumaguete Cockpit and Recreation Center at Barangay Calindangan, of which the corresponding amusement tax has already been paid to the Office of the City Treasurer. However, the barangay officials of Bgy. Tinago is requesting for the refund of their amusement tax payment in view of the power bestowed upon a barangay government as provided for in Section 391 of RA 7160, otherwise known as the Local Government Code of 1991 (LGC) which states, that: "Section 391. Powers, Duties and Functions. (a) The sangguniang barangay, as the legislative body of the barangay, shall: "(1) . . . "(11) Hold fund-raising activities for barangay projects without the need of securing permits from any national or local office or agency. The proceeds from such activities shall be tax-exempt and shall accrue to the general fund of the barangay : Provided, That in the appropriation thereof, the specific purpose for which such fund-raising activity has been held shall be first satisfied: Provided, further, That no fund-raising activities shall be held within a period of sixty (60) days immediately preceding and after a national or local election, recall, referendum, or plebiscite: Provided, finally, That said fund-raising activities shall comply with national policy standards and regulations on morals, health, and safety of the persons participating therein. The sangguniang barangay, through the punong barangay, shall render a public accounting of the funds raised at the completion of the project for which the fund-raising activity has undertaken. TDCAIS "xxx xxx xxx." The abovequoted Section should be read in relation with Section 133 (o) of the same Code which provides: Sec. 133. Common Limitations on the Taxing Powers of Local Government Units. Unless otherwise provided herein, the exercise of the taxing powers of provinces, cities, municipalities, and barangays shall not extend to the levy of the following: "(a) . . . "(o) Taxes, fees or charges of any kind on the National Government, its agencies and instrumentalities, and local government units." Accordingly, the gross receipts derived from the subject cockfighting shall be exempt from local amusement tax. It bears emphasis, however, that all the provisos embodied under Section 391 of the LGC quoted above are strictly complied with. Be guided accordingly. (SGD.) ANGELINA M. MAGSINO Deputy Executive Director Officer-in-Charge <http://www.blgf.gov.ph/downloads/opinion/localtax/2000/a1999-0718.pdf> last visited on October 2, 2013.