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Local Revenue Code - LGA PDF
Local Revenue Code - LGA PDF
1. Planning
2. Drafting
3. Enactment of Ordinances
4. Implementation
5. Redistribution
OUTLINE OF REVENUE CODE
General Provisions
Taxes
Permit & Regulatory Fee
Service Fees
Charges
General Administrative and
Penal Provisions
Final Provisions
IMPORTANT PROVISIONS IN UPDATING
Section 186. Power To Levy Other Taxes, Fees or Charges. - Local government units may
exercise the power to levy taxes, fees or charges on any base or subject not
otherwise specifically enumerated herein or taxed under the provisions of the
National Internal Revenue Code, as amended, or other applicable laws: Provided,
That the taxes, fees, or charges shall not be unjust, excessive, oppressive,
confiscatory or contrary to declared national policy: Provided, further, That the
ordinance levying such taxes, fees or charges shall not be enacted without any prior
public hearing conducted for the purpose.
Section 191. Authority of Local Government Units to Adjust Rates of Tax Ordinances. -
Local government units shall have the authority to adjust the tax rates as prescribed
herein not oftener than once every five (5) years, but in no case shall such
adjustment exceed ten percent (10%) of the rates fixed under this Code.
Section 192. Authority to Grant Tax Exemption Privileges. - Local government units may,
through ordinances duly approved, grant tax exemptions, incentives or reliefs under
such terms and conditions as they may deem necessary.
Section 147. Fees and Charges. - The municipality may impose and collect such
reasonable fees and charges on business and occupation and, except as reserved to
the province in Section 139 of this Code, on the practice of any profession or calling,
commensurate with the cost of regulation, inspection and licensing before any
person may engage in such business or occupation, or practice such profession or
calling.
THE TAX FORMULA
Municipalities
Business Taxes Community Tax
Cities
All taxes which can be imposed by the Provinces and Municipalities
combined and the rates can be 50% higher
Note: 1) Tax Rates can be increased once every five (5) years at the rates not exceeding 10%.
2) Section 186 of the LGU allow LGUs to impose other taxes, fees and charges under certain
limitations
FEES AND CHARGES
Building Agricultural Mayors Burial Permit Fishing Market
Permit Machinery Permit Permit
Electrical Other Heavy Mining Reg. of Large Hawkers Hospital fees
permit Equipment Claims Cattle
Mechanical Carts and Parades Parking Mineral Health
Permit Sledge Lands Services
Plumbing Cockpits Pedicab Tax Video Tape Terminal
Permit Operations Clearance Rental Fees
MARKET SEGMENTATION
CLASSIFY THE MARKET ACCORDING TO
AFFORDABILITY
DIFFERENTIATED IN THE FEE RATES
PROVIDING INCENTIVES
OTHER SCHEMES
LGU OPTIONS FOR RELIEF/
INCENTIVES
DISCOUNTS
SURCHARGE AND/OR PENALTIES
DEFERRED/STAGGERED PAYMENT
TEMPORARY SUSPENSION OF PAYMENT
CONDONATION OF PENALTIES /INTERESTS
EXTENSION OF PAYMENT PERIOD WITHOUT
PENALTY
AMNESTY
COMPROMISE AGREEMENT
OPPORTUNITIES
ON PERMIT FEES
MAYORS PERMIT BASED ON BUSINESS SIZE
CLASSIFICATION
SIMPLIFYING REQUIREMENTS FOR BUSINESS
PERMIT APPLICATIONS
CLUSTERING OF BUSINESSES FOR MAYORS
PERMIT
REQUIRING RESTORATION DEPOSIT BEFORE
ISSUING EXCAVATION PERMIT
ADDITIONAL FEES ON SALE OF SIN PRODUCTS
AUTOMATIC ADJUSTMENT OF THE FEE RATES
CLUSTERING OF FEES ON OCCUPATION OR
CALLING
OPPORTUNITIES – SERVICE FEES