Local Government Taxation in the Philippines

Local Government Taxation in the Philippines is based on Republic Act 7160, otherwise known as Local Government Code of 1991 which was signed into law on 10 October 1991 and took effect on 1 January 1992.

Power to Create Sources of Revenue (Sec. 129)

Each local government unit (LGU) has the power to create its own sources of revenue and to levy taxes, fees, and charges The grant of power to create sources of revenue is consistent with the basic policy of local autonomy The taxes, fees and charges shall accrue exclusively to the LGUs

Sec. 133 - Common Limitations on the Taxing Powers of Local Government Units
a. Income tax, except when levied on banks and other financial institutions; b. Documentary stamp tax; c. Taxes on estates, inheritance, gifts, legacies and other acquisitions mortis causa, except as otherwise provided herein; d. Customs duties, registration fees of vessel and wharfage on wharves, tonnage dues , and all other kinds of customs fees, charges and dues except wharfage on wharves constructed and maintained by the local government unit concerned;

e. Taxes, fees and charges and other impositions upon goods carried into or out of, or passing through, the territorial jurisdictions of local government units in the guise of charges for wharfage, tools for bridges or otherwise, or other taxes, fees and charges in any form whatsoever upon such goods or merchandise; f. Taxes, fees and charges on agricultural and aquatic products when sold by marginal farmers or fisherman.

g. Taxes on business enterprises certified to by the Board of Investments as pioneer or nonpioneer for a period of six (6) and four (4) years, respectively from the date of registration. h. Excise taxes on articles enumerated under the National Internal Revenue Code, as amended, and taxes, fees or charges on petroleum product i. Percentage or value-added tax (VAT) on sales, barters or exchanges or similar transactions on goods or services except as otherwise provided herein;

j. Taxes on the gross receipts of transportation of passengers of freight by hire and common carriers by air, land or water, except as provided in this code. k. Taxes on premiums paid by way of reinsurance or retrocession l. Taxes , fees and charges for the registration of motor vehicles and for the issuance of all kinds of licenses or permits for the driving thereof, except tricycles; m. Taxes, fees and other charges on Philippine products actually exported, except as otherwise provided herein;

n. Taxes, fees and charges, on Countryside and Barangay Business Enterprises and cooperative duly registered under R.A. No. 6810 and Republic Act Numbered Sixty-nine hundred thirty eight (R.A. No. 6938) otherwise known as the cooperative code of the Philippines respectively; and o. Taxes, fees or charges of any kinds on the National Government, its agencies and instrumentalities, and Local Government Units.

1.) GENERAL FUND USED TO ACCOUNT FOR SUCH MONIES AND RESOURCES AS MAY BE RECEIVED BY AND DISBURSED FROM THE LOCAL TREASURY. 2.) SPECIAL EDUCATION FUND SHALL CONSIST OF THE RESPECTIVE SHARES OF PROVINCES, CITIES , MUNICIPALITIES, AND BARANGAYS IN THE PROCEEDS OF THE ADDITIONAL TAX ON REAL PROPERTY. 3.) TRUST FUND SHALL CONSIST OF PRIVATE AND PUBLIC MONIES WHICH HAVE OFFICIALLY COME INTO THE POSSESSION OF THE LGU OR OF A LOCAL GOVERNMENT OFFICAIL AS TRUSTEE, AGENT OR ADMINISTRATORR, WHICH HAVE BEEN RECEIVED AS A GUARANTY FOR FULFILLMENT OF SOME OBLIAGATION.

SOURCES OF INCOME FOR LOCAL GOVERNMENT UNITS

I. LOCAL SOURCES a) Real Property Taxes b) Business Taxes c) Non-tax Revenues II. EXTERNAL SOURCES a) Internal Revenue Allotment b) National Aids c) National Wealth III. BORROWINGS

REAL PROPERTY TAX

The province or city or municipality within the Metropolitan Manila area shall fix a uniform rate of basic real property tax.

A. Province - at rate not exceeding 1% of the assessed value of the real property. Province 35% Municipality 40% Barangay 25% B. City or Municipality within Metropolitan Manila Area - at rate not exceeding 2% of the assessed value of real property. City 70% Barangay 30%

Formula in Computing Real Property Tax

FMV x AL = AV AV x Rate = RPT
Assessment level Residential Where : Commercial FMV = Fair Market Industrial Value Machinery AL = Assessment Level Commercial AV = Assessed Value Industrial LGC 20% 50% 50% 80% 70% 50% Q.C. 15% 40% 40%

REAL PROPERTY TAX

Special Levy on Real Property for Special Educational Fund A. province or city or a municipality within the Metropolitan Manila area may levy and collect an annual tax of 1% on the assessed value of real property in addition to the basic real property tax. Additional ad Valorem Tax on Idle Lands B. Manila area may levy an annual tax on idle lands at the rate not exceeding 5% of the assessed value of the property in addition to the basic real property tax. Real Property for Assessment Purpose Classes 1) Residential 2) Agricultural 3) Commercial 4) Industrial 5) Mineral 6) Timberland Types 1. Land 2. Building 3. Machineries

Revenues Taxes - enforced contribution Kinds: 1. Property taxes 2. Business and other taxes Receipts Fees imposed on the exercise of regulatory powers Charges cost recovery impositions for services delivered or use of facilities

Local Business Taxes

TAXING POWERS OF LOCAL GOVERNMENT UNITS

BUSINESS TAXES

PROVINCES - They may collect taxes, fees and charges on: 1) Tax on Transfer of Real Property Ownership - at rate not more than 50% of 1% of total consideration 2) Franchise Tax - at rate not exceeding 50% of 1 % of the gross receipts for the preceding calendar year 3) Tax on Sand, Gravel and Other Resources - at rate not more than 10% of fair market value 4) Tax on Business of Printing and Publication -at rate not exceeding 50% of 1% 5) Professional Tax - at rate not more than P 300.00 annually 6) Amusement Tax - at rate not more than 30% of gross receipts from admission fees 7) Annual fixed Tax for every Delivery Truck, or Van of Manufacturers or Producers, Wholesalers of, Dealers, or Retailers in, Certain Products - at rate not exceeding P 500.00 annually.

MUNICIPALITIES - They may collect taxes, fees and charges not otherwise levied by provinces. 1.) Manufacturer - at rate not exceeding 37 1/2 % of 1% of gross sales or receipts for the preceding calendar year. 2.) Wholesalers - at rate not exceeding 50% of 1 % of gross sales or receipts for the preceding calendar year. 3.) On Exporters, Manufacturers, Wholesalers or Retailers of essential commodities - at rate not exceeding 1/2 of the rate prescribed under letters A, B, and D. 4.) Retailers -at rate with gross sales or receipts for the preceding calendar year or P 400,000 or less 2% per annum More than P 400,000 1% per annum

TAXING POWERS OF LOCAL GOVERNMENT UNITS

5.) Contractors at rate not exceeding 50% of 1% on the gross sales or receipts for the preceding calendar year. 6.) Banks and other financial Institution at rate not exceeding 50% of 1% on the gross receipts of the preceding calendar year derived from interest, commissions and discounts from lending activities. 7.) Peddlers at rate not exceeding P 50.00 annually. 8.) On any business, not otherwise specified at rate not exceeding 2% of gross sales or receipts of the preceding calendar year.

TAXING POWERS OF LOCAL GOVERNMENT UNITS

CITIES - They may levy taxes, fees and charges which the province or municipalities may impose and may exceed the maximum rates allowed for provinces or municipalities by not more than 50% except the rates for professional and amusement taxes. BARANGAY - They may levy taxes, fees and charges which shall exclusively accrue to them. 1) Taxes - on stores or retailers with gross sales or receipts of the preceding calendar year of P 50,000 or less in the case of cities and P 30,000 or less in the case of municipalities. 2) Service Fees and Charges - they may collect reasonable fees or charges for services rendered. 3) Barangay Clearance - no city or municipality may issue any license or permit unless a clearance is first obtained from the barangay at reasonable rate. 4) Other Fees and Charges - reasonable fees and charges.

BARANGAY INCOME SOURCES I. Internal Revenue Allotment (IRA) II. Real Property Tax (RPT) III. Barangay Taxing Power IV. Community Tax

SHARES OF LOCAL GOVERNMENT UNITS IN THE PROCEEDS OF NATIONAL TAXES

A. INTERNAL REVENUE ALLOTMENT - Local government units shall have a share in the national internal revenue taxes based on the collection of the third fiscal year preceding the current fiscal year at 40% allocated in the following manner. 1) Provinces 2) Cities 3) Municipalities 4) Barangays 23% 23% 34% 20%

The share of each province, city and municipality shall be determined on the bases of the following formula. a) Population b) Land Area c) Equal Sharing 50% 25% 25%

B. SHARES OF LGU IN THE PROCEEDS OF NATIONAL WEALTH - Local government units shall have an equitable share in the proceeds derived from the utilization and development areas at 40% of the gross collection derived by the national government from the preceding year from mining taxes, royalties, forestry and fishery charges in addition to the internal revenue allotment.

Tax on Transfer of Real Property

Tax subject: sale, donation, barter or any mode of transfer of ownership or title of real property Tax rate: not to exceed Tax Base Provinces Fair market value, 50% of 1% or total consideration whichever is higher Cities 75% of 1%

Tax on Transfer of Real Property

payment must be made within 60 days from date of execution of deed or from date of owners death proceeds not shared exemption: disposition of real property under CARP (Republic Act No. 6657)

Tax on Business of Printing and/or Publication

Tax subject: printing and/or publication of books, cards, posters, leaflets, handbills, certificates, receipts, pamphlets, and printed materials of similar nature Tax rate: not to exceed Tax Base Provinces Cities Gross receipts 50% of 1% 75% of 1% Capital investment For start-ups 1/20 of 1%

3/40 of 1%

Tax on Business of Printing and/or Publication

Capital Investment The capital which a person employs in any undertaking, or which he contributes to the capital of a partnership, corporation, or any other judicial entity or association in a particular taxing jurisdiction. proceeds not shared exemptions: receipts from printing and/or publishing of books and reading materials prescribed by DECS as text and references

Franchise Tax
Franchise Right or privilege, affected with public interest conferred upon private person or corporation, under government - imposed terms and conditions in interest of public welfare, security and safety Tax rate: not to exceed Tax Base Provinces Cities Gross receipts 50% of 1% 75% of 1% Capital investment For start- u ps

1/20 of 1%

3/40 of 1%

Franchise Tax proceed not shared exemption: holders of certificates of public convenience for operation of public utility vehicle

BLGF Opinion dated 06 February 2003

The province should impose the tax on business enjoying a franchise within its territorial jurisdiction, excluding the territorial limits of any city located therein.

FRANCHISE TAX Meralco, Globe, Smart, Manila Water Maynilad and PLDT are subject to franchise tax on the receipts derived within the LGU

Tax on sand, gravel and other quarry resources

Tax subject: extraction of ordinary stones, sand, gravel, earth. Etc. from public lands or beds of public waters within LGU Tax rate: not to exceed Tax Base
Fair market value Of extract at site Provinces 10% Cities 15%

Tax on sand, gravel and other quarry resources

proceeds shared (Sec. 10 of P.D. No. 426): Provinces province component city/municipality barangay Cities highly urbanized city barangay

30% 30% 40% 60% 40%

Tax on Professionals
Tax subject: persons engaged in the practice of profession requiring government exams Tax rate: Provinces- maximum of Php 300/ profession Cities- maximum of Php 300/ profession Payment: on or before January 31 in the province/city where practice is done, or principal office is located proceeds not shared exemption: practice of profession exclusively as government employee

BLGF Opinion dated 29 April 2003

The municipality is authorized to impose reasonable fees and charges on professionals which do not require govt. examination in the exercise of their profession. The imposition, however, shall be denominated as fee not tax.

Amusement Tax
Tax subject: patrons of shows and entertainment activities; collected and remitted by proprietors, lessees and operators Tax rate: Provinces-not to exceed 30% of paid admission fees. Cities- not to exceed 30% of paid admission fees no admission fee, no tax

Amusement Tax
proceeds shared: 50-50 between province and municipality exemptions: operas, concerts, dramas, recitals, painting and art exhibition, flower shows, musical and literary presentations except rock and similar concerts

Annual fixed tax on delivery trucks and vans

Tax subject: trucks, vans or any motor vehicle used by manufacturers, producers, wholesalers, dealers or retailers within LGU territory Tax rate: maximum of Province - Php 500/vehicle City - Php 750/vehicle collected with other business taxes . proceeds not shared potential source of avoiding payment of other business taxes, when vehicle used as sales outlet

Computation of Business-related Taxes

Exclusions to gross sales/receipts 1. Discounts, at the time of sales, if determinable 2. Sales return 3. Excise tax 4. Value-added tax

Computation of Businessrelated Taxes

Three-step process Step 1. Classify the business Step 2. Determine gross receipts Step 3. Determine tax due - locate tax due on tax schedule then compute Tax due= tax base x tax rate +/penalty/discount

BLGF Opinion dated 05 August 2002

Where Pepsi-Cola Products Phils. Inc. (PCPPI) maintains sales offices and warehouse in certain municipalities or cities for purposes of selling to retailers, wholesalers and distributors the softdrinks products it manufacture, such municipalities or cities should classify PCPPI for business tax purposes as a manufacturer, not as a wholesaler, distributor, dealer, or contractor.

BLGF Opinion dated 26 September 2002

The tax on contractors is NOT imposed on the project itself but on the business of constructing the project, irrespective of whether those are exempt from the real property taxes.

BLGF Opinion dated 27 November 2002

Bistro Americano (Q.C.) Corporation as restaurant operators and caterers shall be subject to the business tax pursuant to Section 143(h) of the LGC (others).

Sec. 193. Withdrawal of Tax Exemption Privileges

Unless otherwise provided in this Code, tax exemptions or incentives granted to, or presently enjoyed by all persons, whether natural or judicial, including government - o wned or controlled corporations are hereby withdrawn upon the effectivity of this Code except: 1. Local water districts 2. Cooperatives registered under R.A. No. 6938 3. Non - s t ock non - profit hospitals and educational institutions 4. Business enterprises certified by BOI as pioneer or non - p oneer i 5. Business entity, association or cooperatives registered under R.A. No. 6810 6. Printer and/or publisher of books and other reading materials prescribed by DECS

Administrative Procedures Requirements for Existing Business Mayors Permit must be renewed within January 1-20 of every year Renewal of existing business permit is not automatic

Sec. 191. Authority of Local Government Units to adjust Rates of Taxes.

Local government 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 (10) percent of the rates fixed under this code.

Sec. 196 Claim for Refund of Tax Credit

No case or proceeding shall be maintained in any court for the recovery of any tax, fee, or charge erroneously or illegally collected until a written claim for refund or credit has been filed with the local treasurer. No case or proceeding shall be entertained in any court after the expiration of two(2) years from the date of the payment of such tax, fee, or charge, or from the date the taxpayer is entitled to a refund or credit.

ART. 242 - RELATED OR COMBINED BUSINESS

(a) The conduct or operation of two or more related businesses provided in Article 232 of this Rule by any one person, natural or juridical, shall require the issuance of a separate permit or license to each business

(b) If a person conducts or operates two (2) or more related businesses which are subject to the same rate of imposition, the tax shall be computed on the basis of the combined total gross sales or receipts of the said two (2) or more related businesses.

(c) If, however, the businesses operated by one person are governed by separate tax schedules or the rates of the taxes are different, the taxable gross sales or receipts of each business shall be reported independently and the tax thereon shall be computed on the basis of the appropriate schedule.

SITUS OF THE TAX

Taxable 100% where the sale is made or effected 30% of all sales recorded in the principal office shall be taxable by the city or municipality where the principal office is located. 70% of all sales recorded in the principal office shall be taxable by the city or municipality where the factory, project office, plant or plantation is located. In cases where 2 or more factories, project offices, plants or plantation located in different localities, the 70% sales allocation shall be prorated among the localities.

Assessment
Assessment is the inherent function of the local treasurer. Securing/applying business permit is under the Office of the City Mayor. EDP for Billing functions. Acceptance of payment is again a function of the Treasurers Office.

Community Tax
Should be paid in the place of residence of the individual or in the place where the principal office of the juridical entity is located. Branches are not required to secure community tax.

Manufacturers
Manufacturers sales office which distributes its product should also be classified as manufacturers and taxable as such and not as distributor/wholesaler/retailer.

Retailer
Car dealers should not be classified as wholesalers/dealers simply because they are commonly known as car dealers. They should be classified as retailers since they sell directly to end-user or customers.

Real Estate Dealers

Real Estate dealers/developers/lessors are subject to the 70-30 allocation of sales. Principal office 30% of gross sales. Project office or location of the real estate is subject to 70% of gross sales.

Non Profit, Non Stock Corporation

Only hospitals and educational institutions are exempt from paying business tax. Income derived from non-members who use or rent the facilities are subject to business taxes. Required to pay regulatory fees and charges.

Retirement of Business
Should be retired on or before the 20th day of January. Should pay for the entire year after January 20. Sales realized from January up to the time of retirement should likewise be paid.

Security Agency
Security agency are subject to business tax as contractor and subject to situs of tax at 70% - 30%

 Canteens and bookstore operated by the school are exempted from the payment of business tax. Concessionaires operating canteen and bookstores are subject to business taxes.

Educational Institutions

Contractors doing business in an LGU are subject to business tax at 70%. Main or Principal office are subject to 30%. Sub-contractors are not subject to contractors tax. Only main contractors are liable to pay the tax. Tantamount to double taxation if collected from sub-contractors. Income derived from abroad are not taxable.

Contractors

Examination of Books of Accounts

Function of the Provincial, City, Municipal or Barangay Treasurer or their duly authorized representatives. Books of Accounts and records of business establishments could only be examined for a maximum period of 5 years.

Liquefied Petroleum Products LPG is not subject to local tax. However, said LPG business shall still be liable to pay the Mayors permit and other regulatory fees or service charges.

RE-EXPORTATION
Re-exportation of finished product should not be classified as exporter or local/domestic sale but should be classified as rendering service contractor

FRANCHISE TAX ON ELECTRIC COOPERATIVE

Electric cooperative shall be subject to or liable to the payment of franchise tax imposed by the province or city. Base on the Ordinance approved by the province or city. Before the EPIRA Law (1997-2001) Gross receipts less:
NPC Basic Power Cost Allowance for system loss Reinvestment fund Amortization Cost BLGF Ruling Dated May 12, 2006

Upon the effectivity of the EPIRA Law (2002) Gross receipts less: NPC Charges TransCo charges Reinvestment fund Universal Charges

Remedies for Collection of Taxes

Civil Remedies Administrative Remedies thru distraint of goods or other personal properties. Closure of business establishments by the office of the mayor. Judicial Action Filing of Tax evasion case

VICTOR B. ENDRIGA, Ph.D. Quezon City Treasurer

QUEZON CITY
Former Capital of the Philippines Largest City in Metro Manila in terms of population and land area with 2.17 Million residents occupying over 16,000 hectares of land area Was known as the most financially distressed Local Government Unit in Metro Manila and probably nationwide in 2001

THE FINANCIAL RECOVERY OF QUEZON CITY

Cash Balance in the General Fund of Quezon City was negative P10.35 million when Mayor Belmonte assumed office on July 1, 2001 Inherited claims for payment amounting to P1.4 billion, including GSIS, Phil Health, BIR, Meralco etc. Bank Loan of P1.25 billion left by previous administration with the Land Bank of the Philippines

1.

Auction Sale of real property instead of Tax Amnesty every quarter.

PERIOD OF DELINQUENCY TO BE INCLUDED IN THE AUCTION SALE

1. For residential 5 years 2. For commercial and industrial 3 years 3. For machineries 3 years This is an internal rule promulgated by the auction committee

2.) Reassignment of permanent employees to avoid familiarization with Taxpayer. 3.) Prepared at least 20 delinquency letters per day per employee assigned in the Real Estate Division. 4.) Computerization of systems and processes.

5.) Issued new Official Receipts with security features to identify and curb the proliferation of fake receipts. 6.) Constructed the taxpayers assessment and payment lounges (free Coffee & Ice Tea). 7.) Recognized the 10 outstanding Taxpayers for Business and Real Property.

8.) Increased the discount given to Real Property Taxpayers paying annually from 10% to 20%, and from 5% to 10% for those paying promptly quarterly. 9.) Conducted Auction Sale of Government Owned and Controlled Corp. such as Heart Center, Lung Center, Kidney Center and MWSS. 10.) Hired an independent and private encoding company to encode all RPT payment records and Tax Declarations. 11.) Automatically Generated and issued Computerized Delinquency Letters amounting to P10.7 Billion Pesos.

12.) Filed anti-graft cases with the office of the Ombudsman against employees issuing fake RPT Receipts, that resulted to the dismissal of 6 employees. 13.) Declared Tax Amnesty on Machinery and Equipment from Oct. to Dec. 2002. 14.) Created a special Task Force on Machinery composed of representatives from the Treasury, Assessors and Engineering Departments to conduct physical inventories of all machinery and equipment which failed to avail of the Tax Amnesty.

15.) Posted 300 Billboards in major thoroughfares informing the date of the Auction Sale and the increased discount from 10% to 20%, if RP Tax is paid annually. 16.) Allowed staggered payment of Delinquent Real Property Taxes upon payment of a minimum of 30% down and the balance payable within 6 months.

17.) Verified the total value of machinery as appearing in the Tax Declaration issued by the Assessors Office and counter checked this ,with that appearing in the financial statements. 18.) Instruct the Building Official to forward to the City Assessor the building / occupancy permit, stating the total value of the construction cost, for issuance of a new tax declaration.

19.) Instruct the City Engineer to forward to the City Assessor all application for mechanical permit for issuance of a new tax declaration on machineries. 20.) Implemented the Geographic Information System (GIS) for future tax mapping of Real Property.

Parcels with No Tax Declaration Record

Undeclared Buildings Map

Misclassification of Land Use

All Tax Payments records Analysis

By pointing and clicking to a parcel, payment history can be displayed and delinquent tax payers can be easily identified.

1.) Required taxpayers with gross receipts of over P500,000.00 to submit BIR stamped 2005 financial statements and records of monthly payments of VAT and NON-VAT for the year 2006; for comparison against declared gross receipts for 2006 before renewing their Mayors Permit for 2007.

2.) Utilized the presumptive income level approach (implementing a schedule of minimum gross) to make gross tax declarations more realistic and current.

3.) Alignment of Business Taxes with Metro Manila Rates 4.) Consultation and Dialogue with the Business Sector particularly QCCCI

5.) SEC / BIR gross-sales data versus declared gross sales with LGUs. 6.) Census and listing of tax payers. 7.) Adequate and competent staffing. 8.) Examinations of books of account and pertinent records by the Treasurer or his authorize representative. 9.) Revenue target setting

10.) Required contractors to pay business tax prior to the release of the building, excavation and occupancy permits.

11.) Required dealers, sellers, and developers of real estate, such as land, building, condominium units and the like, especially corporations and other juridical entities, to present their Mayors Permit and proof of payment of Business Taxes before processing the Transfer Tax.

12.) Instructed the City Accountant to deduct from the voucher the amount owing to the payment of Business Tax for contractors and suppliers doing business with the City.

13.) Instructed the BPLO to conduct a door to door, street by street, inspection and verification of all unlicensed establishments. 14.) Identified establishments having decreased current declared gross receipts compared to previous years and examined their Books of Accounts for verification of actual sales.

15.) Used (ink) color coding in signing the tax bills and stamp pad with my picture on it, and other official documents during renewal period.

16.) Employed the raffle system in the assignment of Letters of Authority to revenue examiners.

17.) Grounded a number of revenue examiners with low collection outputs every month. 18.) Rewarded top collector revenue examiner with a free trip to Hong Kong and other incentives.

19.) Created a special team to compare Treasury records of Transfer Tax payments with those found in the Land Registration Authority. (Transfer Tax Records in 2001 revealed that 58% of those recorded in the LRA were fake receipts and only 42% were valid and legitimate.)

20.) Maintained a photo gallery of all permanent and casual employees with corresponding assignments, for easier identification.

21.) Required advertising agency to pay contractors tax prior to the release of the billboard permit.

22.) Update local business tax ordinances by 10% once every 5 years. 23.) Adjust existing fees and charges. 24.) Require payment of community tax on all transaction with LGUs.

QUEZON CITY IS THE RICHEST CITY NOT ONLY IN METRO MANILA BUT IN THE ENTIRE COUNTRY AS WELL, AS AUTHENTICATED BY THE COMMISSION ON AUDIT, BEATING MAKATI AND MANILA IN TERMS OF REVENUE COLLECTION FOR THE YEAR 2002,2003,2004 AND 2005

FMV along EDSA

Caloocan Quezon City Mandaluyong Makati Pasay P55,000 P 5,500 P12,000 P48,000 P25,000

The highest FMV in Quezon City is only P5,500

Report Collection for CY 2002 2001-2002 Nature of Collection 2001 2002

Real Estate Business Taxes Fees and Charges Transfer Tax Amusement Tax LOCAL SOURCES BIR Allotment MMDA Contribution Other Income GENERAL FUND Barangay Share RPT SEF Other Trusts GROSS COLLECTION 722,437,380 1,209,965,603 149,224,960 107,510,561 146,400,840 2,335,539,344 1,300,485,734 97,716,000 47,929,204 3,781,670,287 330,991,390.01 626,228,233 39,564,876 4,778,454,787 847.964,965 2,467,209,132 231,964,478 200,013,469 131,480,835 3,878,632,879 1,290,701,951 126,564,000 106,091,335 5,401,990,168 364,308,924 721,696,806 65,517,016 6,553,512,915

%
17.38 103.91 93.51 86.04 -10.19 66.07 -0.75 29.52 121.35 42.85 10.07 15.25 65.59 37.15

Report of Collection for CY 2005 as of January to December 31, 2006

2005 Real Estate Business Taxes Other Regulatory/Misc Fees Transfer Tax Amusement Tax Community Tax Other Income SUBTOTAL IRA IRA Contribution to MMDA GENERAL FUND Special Education Fund Bgy. Share Total City Collection Other Trusts GROSS COLLECTION 1,017,808,956 2,633,377,989 265,051,332 237,212,000 143,141,648 59,941,629 218,481,333 4,575,014,890 1,325,076,782 213,845,000 6,113,936,804 826,935,804 437,656,191 7,378,528,668 81,957,537 7,460,486,205 2006 1,337,428,919 2,899,388,991 352,074,538 235,725,565 131,262,836 66,833,390 526,562,216 5,549,276,458 1,295,641,743 252,528,000 7,097,446,201 1,038,674,677 550,756,457 8,686,877,336 143,021,796 8,829,899,133 Increase (decrease) 319,619,963 266,011,001 87,023,205 (1,486,434) (11,878,812) 6,891,761 308,080,882 974,261,568 (29,435,039) 38,683,000 983,509,529 211,738,872 113,100,266 1,308,348,668 61,064,258 1,369,412,927 % 31.40 10.01 32.83 (0.63) (8.30) 11.50 141.01 21.30 (2.22) 19.09 16.09 25.61 25.84 17.73 74.51 18.36

GENERAL FUND as of December 31, 2006

BUDGET 6,250,000,000

ACTUAL

7,097,446,201

SURPLUS

847,446,201

Top 10 in terms of highest total income generated for CY 2004 as compared to 2001 (NCR) CLASS RANK RANK 2004 2001
CITY QUEZON CITY MAKATI MANILA PASIG KALOOKAN MANDALUYONG PARANAQUE MUNTINLUPA PASAY VALENZUELA MUNICIPALITY SAN JUAN NAVOTAS PATEROS

S 1 S 1 1 1 1 1 1 1 1 1 3

1ST 2ND 3RD 4TH 5TH 6TH 7TH 8TH 9TH 10TH 1ST 2ND 3RD

6,496,282,210 6,247,252,757 6,029,451,082 2,969,849,218 1,681,228,300 1,601,355,056 1,590,065,300 1,250,547,925 1,246,598,000 1,1,73,179,686 519,580,000 276,671,818 72,952,324

3RD 1ST 2ND 4TH 6TH 7TH 5TH 8TH 9TH 10TH 2ND 3RD 4TH

4,276,721,410 5,122,321,279 4,422,171,694 2,220,682,718 1,493,125,921 1,165,955,784 1,533,439,002 1,087,802,228 1,075,895,000 872,868,370 430,370,000 292,835,782 62,188,114

FUNDS Funds Available Today

GEN. FUND

S.E.F.

TRUST FUND

TOTALS

83,216,459

107,266,365

154,191,123

345,001,948

Time Deposits

1,423,966,330

431,777,055

431,925,255

2,287,668,641

Cash on Hand & in Bank

1,512,560,010

539,043,420

586,444,378

2,638,047,810

FINANCIAL PERFORMANCE OF LOCAL GOVERNMENT UNITS COA REPORT / National Capital Region CY 2002
Cities/Municipalities 1. Quezon City 2. Makati 3. Manila City 4. Pasig City 5. Caloocan City 6. Mandaluyong City 7.) Paranaque City 8. Pasay City 9. La Pinas City 10. Muntinlupa City 11. Valenzuela City 12. Marikina City 13. Taguig 14. Malabon City 15. San Juan 16. Navotas 17. Pateros Internal Sources 3,946,465.3 External Sources 1,339,568.0 Grand Total 5,286,033.3

3,816,458.7 3,116,507.8 1,677,114.8 640,142.2 778,135.5 708,046.2 639,536.0 467,153.0 533.984.0 434,465.2 382,179.0 337,956.7 139,776.2 314,598.4 91,122.0 23,734.1

403,992.6 1,047,027.1 388,438.6 740,218.3 280,363.8 345,447.7 306,163.3 373,755.2 304,334.4 375,762.2 318,950.7 226,678.0 289,257.2 66,611.7 116,296.9 37877.1

4,220,451.3 4,163,534.9 2,065,553.3 1,380,360.5 1,058,499.3 1,053,493.8 945,699.3 840,908.2 838,318.3 810,227.3 701,129.7 564,634.7 429,033.4 381,210.9 207,418.9 61,611.2

2004 INCOME STATEMENT GENERAL FUND

INCOME Tax revenues Real property tax Business tax Other tax Non-Tax Revenues Regulatory fees Service/User charges Economic Enterprise Other receipts Shares from national tax collection/Grants/Aids Loans and borrowings Inter-Local Transfers TOTAL INCOME QUEZON CITY 3,932,060,660 897,657,280 2,753,350,830 281,052,550 390,022,310 213,071,460 53,899,860 20,302,230 102,748,770 1,472,766,930 ------------MANILA 3,017,485,962 608,287,258 2,234,148,853 175,049,851 593,099,926 178,841,429 161,887,878 154,474,482 96,871,990 1,100,610,001 -------830,345,778 MAKATI 3,422,250,392 1,405,161,315 1,826,109,950 190,379,126 337,607,540 214,303,596 45,243,634 37,601,206 40,459,102 629,435,809 108,866,054 -------

5,794,829,900

5,541,541,667

4,489,159,795

STATEMENT OF INCOME AND EXPENDITURES CY - 2 005

INCOME 1.Quezon City 2.Manila City 3.Makati City 4.Pasig City 5.Paraaque City 6.Kalookan City 7.Mandaluyong City 8.Muntinlupa City 9.Valenzuela City 10.Marikina City 11.Las Pias City 12.Taguig 13.Malabon City 14.San Juan 15.Navotas 16.Pateros 7,376,391,780.00 7,119,823,858.00 6,320,342,864.75 2,969,849,218.46 1,997,001,967.15 1,681,228,300.25 1,601,355,056.00 1,364,082,104.90 1,173,179,685.75 1,123,019,340.00 1,098,864,570.00 831,014,000.00 570,243,044.42 519,580,000.00 276,671,818.05 83,297,713.42 EXPENDITURES 4,769,022,210.00 5,902,084,336.00 4,416,865,605.91 2,897,677,927.86 1,892,401,933.02 1,456,825,963.54 1,422,370,155.00 1,329,592,287.06 942,242,676.82 778,312,420.00 1,011,286,870.00 812,357,000.00 463,194,670.88 459,200,000.00 253,653,320.10 79,738,124.59 EXCESS/DEFICIT 2,580,389,570.00 1,217,739,522.00 1,903,477,258.84 72,171,290.60 104,599,764.13 224,402,336.71 178,984,901.00 34,489,817.84 230,937,008.93 344,706,920.00 87,577,700.00 18,657,000.00 107,048,373.54 60,380,000.00 23,018,497.95 3,559,588.83

TOTAL

37,352,537,051.15

29,852,591,500.78

7,499,945,550.37

PARTICULARS

QUEZON CITY

MANILA

MAKATI

INCOME LOCAL SOURCES TAX REVENUE Real Property Business Taxes Other Taxes NON-TAXES REVENUE Regulatory Fees Service/User Chrages Receipts from Eco. Ent. Toll Fees Other Receipts SHARES FROM NATIONAL TAX COLLECTIONS EXTRAORDINARY RECEIPTS/GRANTS/AIDS LOANS AND BORROWINGS INTER-LOCAL TRANSFER

7,376,391,780.00 5,828,214,960.00 5,240,530,690.00 2,299,519,760.00 2,635,229,130.00 305,781,800.00 587,684,270.00 304,124,060.00 122,166,900.00 30,658,620.00 0.00 130,734,690.00 1,548,176,820.00 0.00 0.00 0.00

7,119,823,858.00 5,103,606,479.00 4,438,344,332.00 1,889,166,686.00 2,351,070,156.00 198,107,490.00 665,262,147.00 269,796,183.00 166,311,490.00 185,458,341.00 9,913.00 43,686,220.00 1,156,140,434.00 500,000.00 0.00 859,576,945.00

6,320,342,864.75 5,810,054,849.16 5,264,943,985.16 2,462,986,843.28 2,513,988,823.49 287,968,318.39 545,110,864.00 187,575,606.84 66,601,993.32 105,744,778.21 0.00 185,188,485.63 431,979,800.00 26,608,118.85 51,700,096.74 0.00

1999-2005 Estimate VS. Actual Comparative

6,122,034,764.55 % surf (def) 6,000,000,000 5,600,000,000.00 5,820,000,000.00 5,707,509,556

5,175,000,000.00

3,870,000,000.00

4,072,000,000.00

4,000,000,000 3,286,396,701

3,788,687,846

4,700,000,000.00

3,000,000,000

2,000,000,000

1,000,000,000

Estimate

3,641,861,948

5,200,000,000.00

5,304,608,683

5,000,000,000

5,286,033,298

Actual

1999

2000

2001

2002

2003

2004

2005

Report of Collection as of Feb. 27, 2007

2006 Real Estate Business Taxes Other Reg./Misc Fees Transfer Tax Amusement Tax Community Tax Other Income Special Accounts SUBTOTAL IRA IRA Contribution to MMDA GENERAL FUND Special Education Fund Barangay Share TOTAL City collection Other Trusts GROSS COLLECTION 2007 Increase (decrease)

274,682,517 1,201,456,187 61,844,723 31,631,495 22,340,412 45,190,061 42,060,602 8,572,061 1,687,778,062 88,485,716 18,407,000 1,794,670,778 230,823,737 116,380,658 2,141,875,175 16,319,502 2 158 194 678

284,534,710 1,279,649,917 152,218,191 39,779,550 13,099,296 53,389,517 102,179,426 23,980,793 1,948,931,403 133,847,738 21,923,000 2,104,702,141 239,292,657 121,933,264 2,465,928,063 31,341,864 2 497 269 928

9,852,192 78,193,729 90,473,467 8,148,054 (9,241,116) 8,199,456 60,118,823 15,480,732 261,153,341 45,362,022 3,516,000 310,031,363 8,468,920 5,552,605 324,052,888 15,022,361 339 075 250

3.59 6.51 146.29 25.76 (41.37) 18.14 142.93 179.76 15.47 51.26 19.10 17.28 3.67 4.77 15.13 92.05 15 71

Cash Report as of Feb. 27, 2007

FUNDS
Funds Available Today

GEN. FUND

S.E.F.

TRUST FUND

TOTALS

432,716,682

174,710,097

446,251,976

1,053,678,955

Time Deposits

5,086,775,946

230,654,885

184,794,997

5,502,225,829

Cash on Hand & in Bank

5,539,826,738

405,364,982

631,046,973

6,576,238,694

OTHER TREASURY FUNCTIONS: 1.GASOLINE CALIBRATION 2.INSPECTION OF WEIGHTS AND MEASURES 3.BILLBOARDS

GASOLINE CALIBRATION
Increase penalty of defective gasoline pumps: 1. 1st Offense - from P200 to P4,000 2. 2nd Offense - from P500 to P5,000 3. 3rd Offense - cancellation/revocation of mayor permit to operate a business * Calibration of gas pump from annually to quarterly. Note: The court may impose 3 months to 1 year imprisonment or both fine and imprisonment at the discretion of court

CALIBRATING BUCKET

TEST WEIGHTS

Ordinance 1508, S-2005

An Ordinance authorizing the city treasurer to accept as an alternative mode of payment for taxes and fees from taxpayers through the use of over the counter payments in accredited banks, internet banking and automated teller machines.

ACCREDITED BANKS REPRESENTED BY

1. LANDBANK OF THE PHILIPPINES MS. GILDA E. PICO Pres.& CEO 2. DEVELOPMENT BANK OF THE PHILS. - MR. REYNALDO DAVID Pres. & CEO 3. PHILIPPINE NATIONAL BANK - MR. OMAR BRYON T. MIER Pres.& CEO 4. PHILIPPINE VETERANS BANK - MR. RICARDO A. BALBIDO, JR. Pres.& CEO 5. UNION BANK OF THE PHILS. - MR. EDWIN R. BAUTISTA Exec. Vice-Pres. 6. PHILIPPINE POSTAL SAVINGS BANK - MR. ROLANDO L. MACASAET Pres. & CEO

ORDINANCE NO. 1663, S-2006

An Ordinance authorizing the city Mayor to require the city treasurer or his duly authorized representatives to apprehend persons, corporations and entities doing business in Quezon City not issuing receipts and/or sales invoice.

VICTOR B. ENDRIGA, Ph.D. Cel. NO. 0920-9555444 Tel. No. (02) 928-8336