(Section 152, Local Government Code) SEC. 152. Scope of Taxing Powers.- The
barangays may levy taxes, fees, and charges,
as provided in this Article, which shall exclusively accrue to them: (a) Taxes On stores or retailers with fixed
business establishments with gross sales or
receipts of the preceding calendar year of Fifty Thousand Pesos (P50,000.00) or less in the case of cities and Thirty Thousand Pesos (P30,000.00) or less, in the case of municipalities, at a rate not exceeding one
(b) Service Fees or Charges- Barangays may
collect reasonable fees or charges for services
rendered in connection with the regulation or the use of barangay-owned properties or service facilities such as palay, copra or tobacco dryers. (c) Barangay Clearance- No city or municipality may issue any license or permit for any business or activity unless a clearance is first obtained from the barangay where such business or activity is located or conducted. For such clearance, the sangguniang barangay may impose a reasonable fee. The application for clearance shall be acted upon within seven (7) working days from the filing thereof. In the event that the clearance is not issued within the said period, the city or municipality may issue
(d) Other Fees and Charges
The barangay may levy
reasonable fees and charges: (1) On commercial breeding of fighting cocks, cockfights and cockpits; (2) On places of recreation which charge admission fees; and (3) On billboards, signboards,
Meaning of "commercial breeding"
of fighting cocks. For purposes of imposing barangay fees and charges on the commercial breeding of fighting cocks, commercial breeding shall mean an annual sale of more than five (5) fighting cocks of a duly registered breeder. (Art. 240-d, IRR)
Meaning of "places of recreation"
For purposes of Sec. 152 of the Code,
the term places of recreation shall
include places of amusement where one seeks admission to entertain himself by seeing or viewing the show or performance or those where one amuses himself by direct participation. (Art. 240 IRR)
Approval and review of barangay
tax ordinances. (procedure should be in accordance with the
Local Government Code and a public hearing
conducted for the purpose prior to the enactment thereof) A tax ordinance enacted by the sangguniang
barangay shall, upon approval by the majority
of all its members, be signed by the punong barangay. Within 10 days after its enactment, the sangguniang barangay shall furnish copies of all barangay ordinances to the sangguniang panglungsod or sangguniang bayan concerned
If
the sangguniang panglungsod or sangguniang
bayan, as the case may be, fails to take action on barangay ordinances within thirty (30) days from receipt thereof, the same shall be deemed approved.
Should the sangguniang panglungsod or sangguniang
bayan, as the case may be, finds the barangay
ordinances inconsistent with law or city or municipal ordinances, the sanggunian concerned shall, within thirty (30) days from receipt thereof, return the same with its comments and recommendations to the sangguniang barangay concerned for adjustment, amendment, or modification; in which case, the effectivity of the barangay ordinance is suspended until such time as the revision called for is effected.
Publication of barangay tax ordinances;
the language of its text; and the furnishing of copies thereof. Within 5 days after the approval of a barangay tax
ordinance, the secretary of the sangguniang
barangay shall cause the posting thereof in the bulletin board at the entrance of the barangay hall, and in at least two other conspicuous places in the barangay. The text of the ordinance shall be disseminated and posted in Filipino or English and in the language or dialect understood by the majority of the people in the barangay. Copies of all barangay tax ordinances shall be furnished the barangay treasurer for dissemination.
Barangay clearance as a prerequisite for
engaging in any business or activity; action on application therefor. No city or municipality may issue any license
or permit for any business or activity unless a
clearance is first obtained from the barangay where such business or activity is located or conducted. The application for barangay clearance shall
be acted upon within seven (7) working days
from the filing thereof, and if not issued within said period, the city or municipality may proceed to issue the license and permit therefor.
A barangay is entitled to a share
from the following revenues: Real property tax (RPT) collections of the
province and city;
Community tax collections when collected by the barangay: Internal revenue collections; The development and utilization of national wealth; The proceeds of tax on sand, gravel, and other quarry sources;
How much is the share of a barangay out
of the proceeds from real property tax? In case of provinces, twenty-five percent (25%)
of the proceeds from RPT collections of the
province shall accrue to the barangay where the property is located. In the case of cities and municipalities within the Metropolitan Manila Area, thirty percent (30%) of the proceeds shall be distributed among the component barangays, within the city/municipality where the property is located, as follows: 50% to the barangay where the property is located; and 50% to be distributed equally among all component
Allocation of shares of natural resources
Section 292. Allocation of Shares. The share (natural resources)
in the preceding Section shall be distributed in the following
manner: (a) Where the natural resources are located in the province: (1) Province Twenty percent (20%); (2) Component City/Municipality Forty-five percent (45%); and (3) Barangay Thirty-five percent (35%) Provided, however, That where the natural resources are located in two (2) or more provinces, or in two (2) or more component cities or municipalities or in two (2) or more barangays, their respective shares shall be computed on the basis of: (1) Population Seventy percent (70%); and (2) Land area Thirty percent (30%) (b) Where the natural resources are located in a highly urbanized or independent component city: (1) City Sixty-five percent (65%); and (2) Barangay Thirty-five percent (35%) Provided, however, That where the natural resources are located in such two (2) or more cities, the allocation of shares shall be based on the formula on population and land area as specified in
What is IRA? The Internal Revenue Allotment (IRA) is the
annual share of local governments out of the
proceeds from national internal revenue taxes. It is estimated at forty percent (40%) of the actual collections of national internal revenue taxes during the third fiscal year preceding the current year, as certified by the Bureau of Internal Revenue (BIR).