Local Tax Code for LGUs

Agricultural products include both original and processed forms
Amusement covers entertainment venues and participative amusement places
Brewer excludes small domestic producers with limited production
Business refers to commercial activities providing livelihood
Definitions of capital, corporation, dealer, fee, gross receipts, hotel, license, local government, motor vehicle, occupation, peddler, profession, residence, retail, tax, and others are defined with legal and authoritative sources

Tax imposition and collection shall be exercised by the appropriate local board: provincial board for provinces, city council for cities, municipal council for municipalities, barrio council for barrios

Prohibited from imposing documentary stamp tax, taxes on forest products, estate or inheritance taxes, income taxes, motor vehicle registration taxes, customs duties (except limited wharfage), taxes on banks and insurance, export taxes, unreasonable charges on goods passing through, taxes on agricultural products sold by farmers, percentage sales tax except as provided

May impose taxes including:
- Transfer tax on sale or transfer of real property ownership (max 0.25%)
- Tax on printing and publication businesses (max 0.5% of gross receipts)
- Franchise tax on businesses enjoying franchises (max 0.5% gross receipts)
- Sand and gravel extraction fee (max 0.75 pesos per cubic meter)
- Occupation taxes on various professions and callings
- Amusement tax on admission with graduated rates (20%-30%)
- Fees for sealing and licensing of weights and measures
- Taxes on peddlers according to mode of transportation
- Rental fee for use of municipal waters as log ponds
Cannot levy business tax, fishery fees, taxes on articles with national specific tax, or fees reserved for municipalities

May levy taxes including:
- Business taxes based on gross sales with graduated rates
- Taxes on cafes, restaurants, service businesses, brewers, tobacco dealers, amusement devices and places, pawnshops, boarding houses, lodging houses, hotels and motels, and other specified businesses
May collect fees such as cart registration, building permits, marriage, civil status registration, police clearance, and others
May levy fishery rentals and fees for exclusive rights and licenses in municipal waters
Limitations: Cannot impose taxes that provinces or cities are authorized to impose, or those enumerated in Section 5

May levy any taxes, fees, or impositions authorized to provinces or municipalities
Can impose these at up to 50% higher rates than provinces or municipalities, except certain occupation, amusement, and weights and measures taxes which must be uniform
May impose percentage taxes on sales of non-essential (max 2%) and essential commodities (max 1%), but not both percentage and graduated fixed taxes on same subject
May impose taxes on articles subject to national specific tax but not exceeding 25% of national rates
Subject to the same limitations as provinces

Limited to the taxes, fees, charges, and contributions authorized
May levy license taxes on stores, signs, gamecocks, and cockfights within prescribed limits (not exceeding 25% for barrios in municipalities and 10% in cities)
May collect charges for use of barrio-owned properties or service facilities
May solicit contributions from residents, grants, municipal/provincial/national funds, and private entities

Market fees collected for use of public markets with regulations on subdivisions, rentals, and entrance fees
Slaughterhouse fees for permits and use of municipal corrals with specified maximum rates
Public utility charges capped at 10% net profit on capital invested
Tuition fees collectible only with Secretary of Education approval, excluding elementary instruction
Toll fees for roads, bridges, canals, and ferries with exemptions for specified persons and vehicles
Fundraising benefits without permit for local welfare
Permit and service fees for regulation and services by local government

Imposed on individuals and corporations residing or doing business in the Philippines
Annual tax plus additional tax based on real property value, gross receipts, salaries, or earnings with detailed schedules
Exemptions for diplomats, US Armed Forces members, and transient visitors
Collected by Bureau of Internal Revenue through local treasurers
Proceeds shared among national government, provinces, cities, and municipalities
Penalties and fines for unlawful use or falsification of residence certificates

Ordinances passed by local boards or councils numbered sequentially
Requires approval and possible veto by local chief executives with override by two-thirds vote
Tax ordinances take effect fifteen days after approval unless stated otherwise
Ordinances must be published and submitted to Secretary of Finance or appropriate treasurers for review
Suspension and revocation mechanisms for unjust, excessive, oppressive, discriminatory, or illegal taxes
Appeals process against suspension or enforcement

Taxes generally fixed annually and payable quarterly
Payment due within first twenty days of January or quarter but extension can be granted for calamities
Surcharges of up to 25% and 14% interest per annum on unpaid taxes
Taxes collected by local treasurers or authorized deputies
Treasurers may examine books and records of taxpayers quarterly for enforcement

Local tax liens enforceable against property subject to tax and business assets
Remedies include distraint of personal property and legal actions
Distraint procedure covers seizure, accounting, notification, sale at public auction, release upon payment, and disposition of proceeds
Appraisal committees established for unsold property to consider tax delinquency cancellation

Transitory provisions requiring adjustment or rescission of existing taxes exceeding Code limits within one year
Secretary of Finance given authority to review tax rates biennially and promulgate implementing rules
Separability and repealing clauses to ensure Code's supremacy and conformity

Definitions derived from judicial decisions, existing statutes, official regulations, and legal reference materials

Department of Finance issued guidelines for local officials for compliance and implementation of this Code