Local Government Autonomy and Reorganization Act

Chartered cities, municipalities, and municipal districts may impose municipal license taxes or fees on occupations, businesses, and privileges.
May collect fees for services and regulate business-related fees.
Municipalities and municipal districts cannot impose percentage-based sales taxes or taxes on specific national taxes except gasoline.
Prohibited local taxes include residence tax, documentary stamp tax, certain printing business taxes, utility taxes (except electric light, heat, power), forest products, estates and inheritances, income taxes, motor vehicle registration fees, customs duties, franchise taxes on banks and insurance companies, and certain insurance premium taxes.
Tax ordinances take effect 15 days after passage unless suspended by Secretary of Finance for being unjust or oppressive; appeals may be filed in court.

Provincial Boards can appropriate funds for general welfare, aid municipalities, and exercise eminent domain for public works and improvements upon recommendations.
Allowed projects include roads, bridges, wharves, public buildings, parks, water systems, health facilities, and other public utilities.
Provincial Boards may permit private utilities across public property subject to revocation.
Boards can create or redefine barrio and sitio boundaries and change names upon voter petition.
Municipal and City Boards can authorize police uniforms, create and rename barrios and sitios, and rename public buildings and streets with limitations.
Municipal Councils may establish a municipal attorney office to act as legal counsel.
Authority granted to grant permits for benefits excluding prohibited gambling activities.
Empowered to adopt zoning and subdivision regulations with mayoral approval and consult national planning commission.
Provinces, cities, and municipalities may make local purchases without Bureau of Supply, subject to price ceilings and public bidding, with exceptions for small purchases.

Local governments authorized to undertake public works projects financed by local funds or private advances.
Projects supervised by District or City Engineers and approved by local executives and councils.
Public bidding required unless expenditure involves emergency or unclassified positions.

Vice-Governor assumes governorship upon permanent vacancy or incapacity of the Governor.
Vice-Governor elected simultaneously with Governor; must meet same qualifications.
Vice-Governor performs duties during Governor’s temporary incapacity but cannot receive higher than maximum salaries under law.
Vice-Mayor assumes mayoralty on permanent vacancy; if incapacitated or refusing, succession goes to the councilor with highest votes.
Vice-Mayor acts for Mayor temporarily incapacitated except appointive powers; next highest vote councilor assumes if vice-mayor incapacitated.
Provisions exclude cities without elective mayors or vice-mayors.

First to third class provinces: Governor (presiding), Vice-Governor, plus three elected members; fourth to seventh class provinces: Governor, Vice-Governor, plus two members.
Three members constitute quorum.
Tie votes decided by Governor’s vote; absent Governor, majority vote binds.
Members must be qualified voters, bona fide residents for one year, and at least 23 years old.

Appointments by provincial governors, city mayors, and municipal mayors are effective upon issuance and attestation.
Provincial and city treasurers deputized to attest appointments as representatives of Civil Service Commissioner.
Temporary emergency appointments effective immediately without attestation.
Attested appointments forwarded to Civil Service Commissioner within 10 days.
Commissioner has 180 days to review; lack of action deems appointment proper.
Illegal appointments result in treasurers liable for improperly paid compensation.
Treasurers under Civil Service Commission control for appointment attestation rules.

Conflicting laws, orders and proclamations modified or repealed.
Existing rights, vested at time of enactment, are preserved.
Law shall not diminish powers or autonomy currently enjoyed by local governments.
Partial unconstitutionality of provisions shall not invalidate the entire act.

Implied powers construed liberally in favor of local government.
Doubts on existence of powers resolved in favor of local governments.
General welfare clause interpreted liberally to empower local governments in promoting development and welfare.
Existing contracts and vested rights protected against infringement by this law.