Bill tasks cities to share property taxes with provinces

MANILA, Philippines - The House committee on local government has created a technical working group to fast-track the passage of a measure granting provinces a share in the proceeds of real property taxes imposed by component cities.

Negros Oriental Rep. George Arnaiz, chairman of the panel, said the technical committee will conduct a thorough study on the proposed measure, House Bill 2000, authored by Cebu Rep. Pablo John Garcia.

During the recent public hearing of the House committee on the bill, Arnaiz suggested that all local government units should unite their efforts to get a higher share of internal revenue allotments.

Batangas Rep. Hermilando Mandanas, who was present during the committee hearing, proposed changing the distribution of shares in taxes of local government units or changing the classification of cities.

Mandanas is chairman of the House committee on ways and means.

Garcia said there is a need to study the measure to determine actual impact on component cities, which under the Local Government Code are not required to share in the proceeds of real property taxes within the province.

He said component cities are not required to share in the burden of the national government by way of taxation although they have the right to vote for elective provincial positions.

He said the present situation should be corrected by making component cities share the proceeds of real property taxes with the province since a component city’s conversion does not relieve the province of the obligation to maintain infrastructure such as roads and bridges within that component city and its mandatory assistance to its barangays.

“Under the Local Government Code a province is required to protect and uphold the general welfare of all inhabitants including those residing in component cities,” Garcia said.

“The present set-up is also onerous for municipalities who are more often smaller and less financially capable than component cities but are required to share in the government’s burden within the province,” he said.

Under the bill, 30 percent shall accrue to the province, 40 percent to the general fund of the city, while 30 percent shall be distributed among component barangays of cities where the property is located.