DOJ Opinion No. 154, s. 1983

DOJ OPINION NO. 154 , s. 1983 5th Indorsement October 12, 1983 Respectfully returned to the Commission on Audit (Attn. The General Counsel), Quezon City, the within request for "advisory opinion on whether or not local funds may be appropriated to underwrite prizes for a raffle to bolster collection of real property taxes". llcd The accompanying papers disclose that the Sangguniang Panlalawigan of South Cotabato has enacted Resolution No. 57 dated February 24, 1983 authorizing the holding of a raffle among those who have fully paid their real property taxes for the year 1983 not later than June 30, among whom three winners will be picked and entitled to cash awards of P1,500 each. The cash awards will be taken from the funds allocated to the Real Property Tax Administration Project of the province. The purpose of the project is to intensify collection of realty taxes, since to qualify for the raffle a taxpayer has to pay his tax in full before June 30, instead of paying them in quarterly installments, and settle all of his previous year's delinquencies if any. The provincial treasurer has her doubts about the legal propriety of the project, by reason of which the matter was elevated for advisement by that Office which in turned referred the same to this Office for opinion. LexLib Section 34 of the Local Government Code (B.P. Blg. 337) lays down certain principles "relative to the financial affairs, transactions and operations of every local government," the pertinent rules of which are as follows: "(1) As a general rule, local governments shall be allowed as much authority and flexibility over the financial aspects of their operations which are consistent with such standards and guidelines as may be prescribed by competent authorities. (2) No money shall be paid our of the treasury except in pursuance of a lawful appropriation other specific statutory authority. No funds shall be disbursed, and no checks shall be issued without the approval or signature of the local chief executive. (3) Public funds and monies shall be spent solely for public purposes." We are not aware of any law or any standard or regulation issued by competent authorities pursuant to the afore-quoted subsection (1) which would be violated by the appropriation of local funds for the raffle prizes as above-mentioned. Local governments are expressly allowed broad authority and flexibility in their financial operations and are specifically empowered "to appropriate money for purposes not specified by law, having in view the general welfare of the province and its inhabitants". (Sec. 3 [a], The Local Autonomy Act) The legal basis for the appropriation of the amounts to underwrite the raffle prizes is provided by the abovesaid resolution of the Sangguniang Panlalawigan of South Cotabato. Upon approval by the provincial governor of the aforesaid resolution it shall become law (sec. 209, B.P. No. 337), and the requirements of subsection (2) would be been satisfied. LexLib As regards the requirement of public purpose in subsection (3), this is satisfied by the fact that the object of the raffle is to bolster real estate tax collection, which is clearly beneficial to the inhabitants, directly connected with the local government and contributing to the general good (See Green vs. Frazier 176 N.W. 11; Spahn vs. Stewart, 103 S.W. 2d 651; Briggs vs. City of Raleigh, 141 S.E. 597; City of Tombstone vs. Macia, 245 P. 677) It is noted that the raffle is open to any taxpayer who is eligible under the rules promulgated by the organizing committee and does not discriminate against taxpayers who are otherwise qualified to participate under such rules, Moreover, its primary objective is to promote tax collection, the success of which will undoubtedly redound to the benefit of the community. Please be advised accordingly. (SGD.) RICARDO C. PUNO Minister of Justice