Share of the Municipality from Rentals Paid to the Province

February 24, 1993 DILG LEGAL OPINION NO. 103-93 LEGAL SERVICE Mayor Oscar de los Reyes Mariveles, Bataan Dear Sir : This has reference to your letter dated 16 February 1993, requesting for opinion on the queries stated therein, regarding the share of the Municipality of Mariveles from the rentals paid to the Province of Bataan for the lease of the properties of BASECO which were placed on sale at public auction for failure to pay its realty tax and penalties. In reply thereto, after a close examination of the pertinent provisions of the Local Government Code of 1991 (Rep. Act No. 7160), we believe and so hold that a municipality is entitled to a share in the proceeds of the real property tax levied and collected by the province and the proceeds from said property. Insofar as pertinent, Section 271, paragraph (a) of the said Code states: "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 provisions of this Title by the province or city or municipality within Metro-Manila shall be distributed as follows: (a) In the case of Provinces: (1) Province Thirty-five percent (35%) shall accrue to the general funds; (2) Municipality Forty percent (40%) to the general fund of the municipality where the property is located; and (3) Barangay Twenty-five percent (25%) shall accrue to the barangay where the property is located. ..." Accordingly, the Province of Bataan cannot exclude the Municipality of Mariveles from sharing from the real property tax and the proceeds from the lease of subject property. Hoping we have clarified you on the matter. Very truly yours, DIR. JACOB F. MONTESA Department Legal Counsel Department of Interior and Local Government