Title
Supreme Court
Amendment on Barangay Shares in Real Property Tax
Law
Presidential Decree No. 1230
Decision Date
Nov 4, 1977
Presidential Decree No. 1230 amends the Real Property Tax Code to allocate a higher percentage of real property taxes to barangays in rural areas, providing them with additional funds for priority development projects.

Law Summary

Previous Allocation of Real Property Tax Shares to Barangays

  • Barangays located within cities previously received 10% of the annual real property tax collections.
  • Barangays situated in municipalities received only 5% of the provincial and municipal real property tax collections.

Revised Allocation of Barangay Shares in Real Property Tax Collections

  • Effective January 1, 1978, barangays shall uniformly receive 10% of the total annual real property tax collections of the province and municipality where the taxable property is located.
  • This amendment effectively increases the share for barangays in municipalities from 5% to 10%, equalizing it with those in cities.

Implementation Provisions

  • The amendment expressly repeals the prior provision under Section 86 (b)(1) of PD 464 and inserts the revised allocation in its place.
  • The decree is set to take effect on January 1, 1978.
  • All laws or parts of laws inconsistent with this amendment are repealed, amended, or modified accordingly.

Legal Authority and Effectivity

  • The decree is issued by the President of the Philippines under the constitutional powers vested in the Office.
  • It represents an exercise of executive legislative authority to modify fiscal policy impacting local government units at the barangay level.
  • Effective date ensures uniform application from the start of the fiscal year following issuance.

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