PUBLIC CORPO FINALS NOTES
calendar year, or any fraction thereof, as provided herein.
Executive Order
- Law
- Projects
- Ordinance
Power to tax is only an ordinance
Section 134. Scope of Taxing Powers. - Except as
otherwise provided in this Code, the province may levy
only the taxes, fees, and charges as provided in this
Article.
Section 135. Tax on Transfer of Real Property
Ownership.
(a) The province may impose a tax on the sale ,
donation, barter, or on any other mode of
transferring ownership or title of real property at
the rate of not more than fifty percent (50%) of
the one percent (1%) of the total consideration
involved in the acquisition of the property or of
the fair market value in case the monetary
consideration involved in the transfer is not
substantial, whichever is higher. The sale,
transfer or other disposition of real property
pursuant to R.A. No. 6657 shall be exempt from
this tax.
(b) For this purpose, the Register of Deeds of
the province concerned shall, before registering
any deed, require the presentation of the
evidence of payment of this tax. The provincial
assessor shall likewise make the same
requirement before cancelling an old tax
declaration and issuing a new one in place
thereof, Notaries public shall furnish the
provincial treasurer with a copy of any deed
transferring ownership or title to any real
property within thirty (30) days from the date of
notarization.
It shall be the duty of the seller, donor, transferor,
executor or administrator to pay the tax herein imposed
within sixty (60) days from the date of the execution of the
deed or from the date of the decedent's death.
Section 136. Tax on Business of Printing and
Publication. - The province may impose a tax on the
business of persons engaged in the printing and/or
publication of books, cards, posters, leaflets, handbills,
certificates, receipts, pamphlets, and others of similar
nature, at a rate not exceeding fifty percent (50%) of one
percent (1%) of the gross annual receipts for the
preceding calendar year.
In the case of a newly started business, the tax shall not
exceed one-twentieth (1/20) of one percent (1%) of the
capital investment. In the succeeding calendar year,
regardless of when the business started to operate, the
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Stephen Michael Ben
tax shall be based on the gross receipts for the preceding
The receipts from the printing and/or publishing of books
or other reading materials prescribed by the Department
of Education, Culture and Sports as school texts or
references shall be exempt from the tax herein imposed.
Section 137. Franchise Tax. - Notwithstanding any
exemption granted by any law or other special law, the
province may impose a tax on businesses enjoying a
franchise, at the rate not exceeding fifty percent (50%) of
one percent (1%) of the gross annual receipts for the
preceding calendar year based on the incoming receipt,
or realized, within its territorial jurisdiction.
In the case of a newly started business, the tax shall not
exceed one-twentieth (1/20) of one percent (1%) of the
capital investment. In the succeeding calendar year,
regardless of when the business started to operate, the
tax shall be based on the gross receipts for the preceding
calendar year, or any fraction thereon, as provided
herein.
Section 138. Tax on Sand, Gravel and Other Quarry
Resources. - The province may levy and collect not more
than ten percent (10%) of fair market value in the locality
per cubic meter of ordinary stones, sand, gravel, earth,
and other quarry resources, as defined under the
National Internal Revenue Code, as amended, extracted
from public lands or from the beds of seas, lakes, rivers,
streams, creeks, and other public waters within its
territorial jurisdiction.
The permit to extract sand, gravel and other quarry
resources shall be issued exclusively by the provincial
governor, pursuant to the ordinance of the sangguniang
panlalawigan.
The proceeds of the tax on sand, gravel and other quarry
resources shall be distributed as follows:
(1) Province - Thirty percent (30%);
(2) Component City or Municipality where the
sand, gravel, and other quarry resources are
extracted - Thirty percent (30%); and
(3) Barangay where the sand, gravel, and other
quarry resources are extracted - Forty percent
(40%).
Section 139. Professional Tax. -
(a) The province may levy an annual
professional tax on each person engaged in the
exercise or practice of his profession requiring
government examination at such amount and
reasonable classification as the sangguniang
panlalawigan may determine but shall in no
case exceed Three hundred pesos (P300.00).
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 (b) Every person legally authorized to practice fraud or failure to pay the tax, the sangguniang
his profession shall pay the professional tax to panlalawigan may impose such surcharges,
the province where he practices his profession interest and penalties as it may deem
or where he maintains his principal office in appropriate.
case he practices his profession in several
places: Provided, however, That such person
(e) The proceeds from the amusement tax shall
who has paid the corresponding professional
be shared equally by the province and the
tax shall be entitled to practice his profession in
municipality where such amusement places are
any part of the Philippines without being
located.
subjected to any other national or local tax,
license, or fee for the practice of such
profession. Section 141. Annual Fixed Tax For Every Delivery Truck
or Van of Manufacturers or Producers, Wholesalers of,
Dealers, or Retailers in, Certain Products. -
(c) Any individual or corporation employing a
person subject to professional tax shall require
payment by that person of the tax on his (a) The province may levy an annual fixed tax
profession before employment and annually for every truck, van or any vehicle used by
thereafter. manufacturers, producers, wholesalers, dealers
or retailers in the delivery or distribution of
distilled spirits, fermented liquors, soft drinks,
(d) The professional tax shall be payable
cigars and cigarettes, and other products as
annually, on or before the thirty-first (31st) day
may be determined by the sangguniang
of January. Any person first beginning to
panlalawigan, to sales outlets, or consumers,
practice a profession after the month of
whether directly or indirectly, within the
January must, however, pay the full tax before
province in an amount not exceeding Five
engaging therein. A line of profession does not
hundred pesos (P500.00).
become exempt even if conducted with some
other profession for which the tax has been
paid. Professionals exclusively employed in the (b) The manufacturers, producers, wholesalers,
government shall be exempt from the payment dealers and retailers referred to in the
of this tax. immediately foregoing paragraph shall be
exempt from the tax on peddlers prescribed
elsewhere in this Code
(e) Any person subject to the professional tax
shall write in deeds, receipts, prescriptions,
reports, books of account, plans and designs,
surveys and maps, as the case may be, the EXPROPRIATION
number of the official receipt issued to him.
Section 19. Eminent Domain. - A local government unit
Section 140. Amusement Tax. - may, through its chief executive and acting pursuant to an
ordinance, exercise the power of eminent domain for
public use, or purpose or welfare for the benefit of the
(a) The province may levy an amusement tax to
poor and the landless, upon payment of just
be collected from the proprietors, lessees, or
compensation, pursuant to the provisions of the
operators of theaters, cinemas, concert halls,
Constitution and pertinent laws: Provided, however, That
circuses, boxing stadia, and other places of
the power of eminent domain may not be exercised
amusement at a rate of not more than thirty
unless a valid and definite offer has been previously
percent (30%) of the gross receipts from
made to the owner, and such offer was not accepted:
admission fees.
Provided, further, That the local government unit may
immediately take possession of the property upon the
(b) In the case of theaters or cinemas, the tax filing of the expropriation proceedings and upon making a
shall first be deducted and withheld by their deposit with the proper court of at least fifteen percent
proprietors, lessees, or operators and paid to (15%) of the fair market value of the property based on
the provincial treasurer before the gross the current tax declaration of the property to be
receipts are divided between said proprietors, expropriated: Provided, finally, That, the amount to be
lessees, or operators and the distributors of the paid for the expropriated property shall be determined by
cinematographic films. the proper court, based on the fair market value at the
time of the taking of the property.
(c) The holding of operas, concerts, dramas,
recitals, painting and art exhibitions, flower
shows, musical programs, literary and Taking
oratorical presentations, except pop, rock, or
similar concerts shall be exempt from the
payment of the tax hereon imposed. Owner is deprived of the beneficial use of the
property.
(d) The sangguniang panlalawigan may
prescribe the time, manner, terms and
conditions for the payment of tax. In case of

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Note: You can the question the ordinance
granting the expropriation by asking the
necessity of the expropriation.
AUTHORITY TO ENTER CONTRACTS
panlungsod, except those whose manner of appointment
is specifically provided in this Code;
(3) Assume the office of the city mayor for the unexpired
term of the latter in the event of permanent vacancy as
provided for in Section 44, Book I of this Code;

Chief Executive will represent the LGU but must (4) Exercise the powers and perform the duties and
functions of the city mayor in cases of temporary vacancy
be authorized by the Sanggunian. as provided for in Section 46, Book I of this Code; and

Sec. 465
(5) Exercise such other powers and perform such other
duties and functions as may be prescribed by law or
(vi) Represent the province in all its business transactions ordinance.
and sign in its behalf all bonds, contracts, and obligations,
and such other documents upon authority of the
sangguniang panlalawigan or pursuant to law or
ordinance;

GR: They cannot enter

Note: Mayor entered into a contract with no
law, no ordinance, and no authorization is
unenforceable but can be cured by ratification
(express or implied).
-Mayor can be charged personally liable
because of self enrichment
ENTERED WITHOUT AUTHORITY
Quisumbing vs Garcia
The question of whether a sanggunian authorization separate
from the appropriation ordinance is required should be
resolved depending on the particular circumstances of the
case. Resort to the appropriation ordinance is necessary in
order to determine if there is a provision therein which
specifically covers the expense to be incurred or the contract
to be entered into. Should the appropriation ordinance, for
instance, already contain in sufficient detail the project and
cost of a capital outlay such that all that the local chief
executive needs to do after undergoing the requisite public
bidding is to execute the contract, no further authorization is
required, the appropriation ordinance already being sufficient.
EX: Vice Mayor can enter into a contract if
authorized by law or ordinance.
Vicencio vs Villar
There is no inherent authority on the part of the city vice-
mayor to enter into contracts on behalf of the local
government unit, unlike that provided for the city
mayor. Thus, the authority of the vice-mayor to enter into
contracts on behalf of the city was strictly circumscribed
by the ordinance granting it. Ordinance No. 15-2003
specifically authorized Vice-Mayor Yambao to enter into
contracts for consultancy services. As this is not a power
or duty given under the law to the Office of the Vice-
Mayor, Ordinance No. 15-2003 cannot be construed as a
"continuing authority" for any person who enters the
Office of the Vice-Mayor to enter into subsequent, albeit
similar, contracts.
Scribble: National Calamity Fund – President can
use if declared
Local Calamity Fund – Chief Executive can use if
declared

VICE MAYOR AND CONTRACTS

SECTION 456. Powers, Duties and Compensation. – (a)
The city vice-mayor shall:

(1) Be the presiding officer of the sangguniang

panlungsod and sign all warrants drawn on the city
treasury for all expenditures appropriated for the
operation of the sangguniang panlungsod;

(2) Subject to civil service law, rules and regulations,

appoint all officials and employees of the sangguniang

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VACANCIES event of the inability of the regular presiding officer to preside
at the sanggunian session, the members present and
constituting a quorum shall elect from among themselves a
G/M temporary presiding officer.
V BOTH DEAD
1
2 G/M
3 V
4 1
5 2
6 3
7 4
8 5 – He died
9 6
10 7
8
9 - Did not win in the election
1 and 2 will succeed

What if 1 waives his right to succeed? WILL THERE BE AUTOMATIC SUCCESSION

He cannot waive his right to succeed because
succession is a duty and not a right. If he
refused his position will be vacant then 2 can
assume G/M.
Note: DILG cannot adjudicate but can only
render opinions.
Scribbles: In Menzon vs Petilla, regarding the
silence of Sec. 46, The vacuum should not be let
unresolved. Sec. 44 shall be observed.
SINCE 5 DIED?
No. Automatic succession does not apply.
Appointment will happen. So 6 will go up and so
on. 8, the vacant spot, will then be appointed.
CAN 9 SUCCEED AND TAKE THE VACANT SPOT?
No. He lost in the election so he has no rank
thus no succession.
Note: Ex- Officio has no rank thus no succession/

Can the Vice acting as Governor can still Note: If the cause of the vacancy belonged to a
perform his legislative powers? party, the nomination should also be part of the
party.
Aguirre vs Gamboa
IF 5 BELONGED TO XY WHEN HE GOT ELECTED
Being the Acting Governor, the Vice-Governor cannot continue
to simultaneously exercise the duties of the latter office, since
BUT DURING HIS OCCUPATION OF THE
the nature of the duties of the provincial Governor call for a POSITION HE LEFT XY PARTY AND JOINED ZZ
full-time occupant to discharge them. Such is not only
consistent with but also appears to be the clear rationale of
PARTY, WHICH PARTY WILL NOMINATE?
the new Code wherein the policy of performing dual functions
in both offices has already been abandoned. To repeat, the XY PARTY. If 5 was elected as member of XY
creation of a temporary vacancy in the office of the Governor party but died as ZZ party, the rule must be the
creates a corresponding temporary vacancy in the office of the
Vice-Governor whenever the latter acts as Governor by virtue party he was elected thus XY party.
of such temporary vacancy. This event constitutes an inability
on the part of the regular presiding officer (Vice Governor) to Note: I n F a r i n a s v . Ba r b a , 2 5 6 S C R A 3 9 6 ,
preside during the SP sessions, which thus calls for the
operation of the remedy set in Article 49(b) of the Local
where vacancy to be filled was that of a
Government Code concerning the election of a temporary member of the Sangguniang Bayan who did not
presiding officer.The continuity of the Acting Governors (Vice- belong to any political party, the SC held that
Governor) powers as presiding officer of the SP is suspended
so long as he is in such capacity. Under Section 49(b), (i)n the
neither the p e t i t i o n e r n o r t h e r e s p o n d e n t
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w a s v a l i d l y appointed. Not the petitioner,
because although he was appointed by the
Governor, he was not r e c o m m e n d e d b y t h e
S a n g g u n i a n B a y a n . Neither the respondent,
because although he was recommended by the
Sanggunian Bayan, he was not appointed by the
Governor.
(c) The term of office of barangay officials and members of the
sangguniang kabataan shall be for three (3) years, which shall
begin after the regular election of barangay officials on the
second Monday of May 1994.
Note: The Barangay officials are also under the 3
consecutive rule.

Note: Barangay is a non-political party election so no Scribbles: Two kinds of suspension (1) Preventive and
political parties thus in the event of vacancy, (2) Penalty.
recommendation by the sanggunian and not the Note: Suspension is not interruption.
party.

M - Resigned
VM
1 (XY party)
2 (ZZ party) Actual
Domicile
3 (ZZ) Residence
4 (ZZ)
5 (ZZ) Mayor
6 (ZZ)
7 (ZZ) Municipal 1 Municipal 2
8 (ZZ)

MAYOR RESIGNED, WHO CAUSED THE VACANCY?

Not the Mayor because he is not a member of the

sangginian. It is 1 who caused the vacancy because
he assumed the position of VM. Because if 8 caused
the vacancy (see pg. 4 table 2 for reference) then the
1. OM 3rd term Mayor slowly moves back to
will of the people is not followed because everyone
his Domicile.
in the sanggunian will be a member of the ZZ party.
2. Went home to Domicile.
There must be 1 from XY party. Political Proportion
3. Can he run on Municipal 2? Yes, because
must be maintained.
not the same territory and different
ELECTION AND TERM electorate.

Section 43. Term of Office. - Note: Removal of Office for cause is a ground of
disqualification.
(a) The term of office of all local elective officials elected after
the effectivity of this Code shall be three (3) years, starting A. Must be based on final judgment
from noon of June 30, 1992 or such date as may be provided
B. If on appeal he can still run.
for by law, except that of elective barangay officials: Provided,
That all local officials first elected during the local elections
immediately following the ratification of the 1987 Constitution SCENARIO:
shall serve until noon of June 30, 1992.
A IS VICE MAYOR AND B LOST TO THE ELECTION AS
(b) No local elective official shall serve for more than three (3) MAYOR. VACANCY IN THE POSITION OF MAYOR
consecutive terms in the same position. Voluntary
renunciation of the office for any length of time shall not be 1. If votes casts are valid then A as VM will
considered as an interruption in the continuity of service for succeed as mayor/
the full term for which the elective official concerned was
elected.

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 2. If votes were invalid then B will occupy. (4) Ordinance must not contravene law.
There must be 5 days in the election
protest.

ORDINANCE
Section 16. General Welfare. - Every local government
unit shall exercise the powers expressly granted, those
necessarily implied therefrom, as well as powers
necessary, appropriate, or incidental for its efficient and
effective governance, and those which are essential to
the promotion of the general welfare. Within their
respective territorial jurisdictions, local government units
shall ensure and support, among other things, the
preservation and enrichment of culture, promote health
and safety, enhance the right of the people to a balanced
ecology, encourage and support the development of
appropriate and self-reliant scientific and technological
capabilities, improve public morals, enhance economic
prosperity and social justice, promote full employment
among their residents, maintain peace and order, and
preserve the comfort and convenience of their
inhabitants.

Congress has the power to Subpoena

a. Congress can compel appearance

b. Contempt? I don’t know lol

Note: Power to cite contempt is not implied

CONGRESS CAN PASS A LAW REPEALING AN

ORIDNANCE

Higher ordinance cannot repeal lower ordinance

because the LGUs are all exercising delegated
legislative power.

Note: Review and Repeal are different. The former is

to check the consistency of the law or higher
ordinance

3 READING IN 3 SEPARATE DAYS APPLICABLE IN

SANGGUNIAN?

No. It is only meant for congress and not the

sanggunian.

ORDINANCE

(1) Ordinance cannot prohibit what is allowed

by law but ordinance can regulate it.
(2) Prohibition with a period is still regulation
(Socrates case) but period must be
reasonable.
(3) The subject matter of the ordinance must
be within the scope of the sanggunian.

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