Taxing Authority Empowered to Levy and Collect the Tax on Sand, Gravel and Other Quarry Resources

February 9, 1993 DILG LEGAL OPINION NO. 047-93 LEGAL SERVICE Mayor Cesar A. Ventura City Hall, Laoag City Dear Mayor Ventura : This has reference to your letter dated September 2, 1992 addressed to the Regional Director, Bureau of Local Government Finance, San Fernando, La Union, which was referred to this Department for the taking of appropriate action, requesting for an opinion as to which taxing authority is empowered to levy and collect the tax on sand, gravel and other quarry resources. In reply thereto, the Local Government Code of 1991 (Rep. Act No. 7160), particularly Section 138 thereof, explicitly provides that the "province has the power to levy and collect tax on sand, gravel and other quarry resources". However, the same law also states that: "The proceeds of the tax on sand, gravel and other quarry resources shall be distributed as follows: 1. Province Thirty percent (30%); 2. Component City or Municipality where the sand, gravel and other quarry resources are extracted Thirty percent (30%); and 3. Barangay where the sand, gravel and other quarry resources are extracted Forty percent (40%)." (Emphasis supplied) Stated otherwise, the power to levy and collect the said tax exclusively belongs to the province where the sand, gravel and other quarry resources are situated. However, a component city or municipality of a province where the same are located, is entitled to the proceeds of such tax at the rate of thirty percent (30%) pursuant to the aforequoted provisions of the Code. Premises considered, we so hold the view that Laoag City, being a component city of Ilocos Norte, has the right to a share of the proceeds of the said tax imposition. Hoping we have enlightened you on the matter. Very truly yours, DIR. JACOB F. MONTESA Department Legal Counsel Department of Interior and Local Government copy furnished: Mr. Oscar H. Micla Regional Director Bureau of Local Government Finance Department of Finance Region I, San Fernando La Union