Bureau of Local Government Finance Opinion

May 30, 2014 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Mr. Rodelio H. Mamac Punong Barangay Barangay Balibago Angeles City Sir : This refers to your letter dated April 11, 2014 requesting opinion on the legality/propriety of a Barangay measure entitled "AN ORDINANCE ENACTING THE IMPOSITION OF BARANGAY FEES IN PLACES OF RECREATION AND AMUSEMENT WITHIN BARANGAY BALIBAGO", posing the query whether a Barangay under Section 152 (d) of R.A. 7160, also known as the Local Government Code (LGC) of 1991 is vested with the power to imposed reasonable fees and charges on places of recreation which charge admission fees within its jurisdiction. In this connection, it may be stated that the LGC provides the specific for taxing powers conferred upon the different levels of local governments such as provinces, cities, municipalities and barangays . However, when it comes to the taxing and police powers of a barangay , Section 152 (d) thereof provides as follows: "Section 152. Scope of Taxing Powers . The barangay may levy taxes, fees and charges , as provided in this Article, which shall exclusively accrue to them: "(a) . . .; "(d) Other Fees and Charges The barangay may levy reasonable fees and charges: (1) . . .; (2) On places of recreation which charge admission fees; and (3) . . . ." (Underlining supplied) In view of the abovequoted Section 152 (d) of the LGC, it is clear that Barangay Balibago may levy reasonable fees and charges on places of recreation which charge admission fees within its jurisdiction provided, however, that such tax measure or tax ordinance was enacted pursuant and in accordance with Sections 187 and 188 of the LGC. Further, in enacting and/or implementing such fees and charges, Barangay Balibago may be guided by the provision of Articles 233 and 244 of the Implementing Rules and Regulations implementing Sections 147 and 153, respectively, providing similarly worded provisions, which reads: "no such fees or charges shall be based on capital investments or gross sales or receipts of the person or business liable therefor" . Very truly yours, (SGD.) SALVADOR M. DEL CASTILLO OIC-Executive Director