Presidential Decree No. 921 (PD 921) — Providing for the Administration of Local Financial Services in Metropolitan Manila, Creating Local Treasury and Assessment Districts Therein, and for Other Purposes
WHEREAS, the integration of citic3 and municipalities in
Metropolitan Manila under the provinces of Presidential Decree No. 821
requires a modification of the existing local tax structure and
established financial arrangement in order that these may be re-aligned
to conform with the objectives of central planning, coordination and
unified management of local government functions within the Metropolitan
Manila Area;
WHEREAS, the massive financial requirements of the
integrated development of Metropolitan Manila have made imperative the
evolvement of a progressive revenue-raising program that will not unduly
burden the taxpayers, as well as the adoption of sound fiscal policies,
methods and procedures that will facilitate the judicious allocation
and utilization of resources;
WHEREAS, in order to attain the objectives of effective
fiscal management, there is a need to clearly define the structure and
administration of local finance services within the Metropolitan cities
and municipalities to insure proper handling and disposition of public
funds;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Republic of the Philippines, by virtue of the powers vested in me by the
Constitution, do hereby decree and order, as part of the law of the
land, the following:
Division of Metropolitan Manila into Local Treasury and Assessment Districts.
SECTION 1. Division of Metropolitan Manila into Local
Treasury and Assessment Districts.—For purposes of effective fiscal
management, Metropolitan Manila is hereby divided into the following
Local Treasury and Assessment Districts:
First District
Manila
Second District
Quezon City, Pasig, Marikina, Mandaluyong and San Juan
Third Distric
Caloocan City, Malabon, Navotas and Valenzuela
Fourth District
Pasay City, Makati, Paranaque Muntinlupa, Las Piñas, Pateros
and Taguig
Manila, Quezon City, Caloocan City and Pasay City shall be the
respective Centers of the aforesaid Treasury and Assessment Districts.
General supervision of municipal treasury and assessment offices.
SEC. 2. General supervision of municipal treasury and
assessment offices.—Under the general direction of the Commissioner
for Finance of the Metropolitan Manila Commission, the City Treasurers
and the City Assessors of the treasury and assessment districts created
under Section one hereof shall, henceforth, exercise general supervision
over the local treasury and assessment offices of the municipalities
belonging to their respective districts. Accordingly, said City
Treasurers and City Assessors, in addition to the powers, duties, and
functions exercised by them under existing laws, decrees, and rules and
regulations, shall also discharge the. duties and functions heretofore
exercised and performed under existing law by the Provincial Treasurers
and Provincial Assessors of the provinces of Rizal and Bulacan insofar
as the aforesaid offices of the municipalities within the Metropolitan
Manila Area are concerned.
SEC. 3. Appointment of Municipal Treasurers, Assistant
Municipal Treasurers, Municipal Deputy Assessors and other municipal
treasury and assessment personnel.—Effective July 1, 1976, the power
to appoint the Municipal Treasurers, Assistant Municipal Treasurers and
Municipal Deputy Assessors of the municipalities within the
Metropolitan Manila Area theretofore exercised by the Provincial
Treasurers and Provincial Assessors of the provinces concerned shall be
vested upon the Commissioner for Finance of the Metropolitan Manila
Commission subject to the provisions of Sections 70 and 74 of
Presidential Decree No. 477 and Section 90 of Presidential Decree No.
464, as the case may be, upon recommendation of the City Treasurer or
the City Assessor of the District concerned. Henceforth, the position of
Municipal Deputy Assessor provided for under Section ninety of
Presidential Decree No. 464 shall be known as Municipal Assessor.
The other municipal treasury and assessment personnel shall
continue to be appointed by the local chief executive of the
municipality in accordance with existing laws.
The incumbent
Municipal Treasurers, Assistant Municipal treasurers, Municipal Deputy
Assessors and other municipal treasury and assessment personnel shall
continue in office without the necessity of being reappointed and they
may be removed from the service or otherwise disciplined only for cause
as provided for by law.
Compensation of municipal treasury and assessment officials and other personnel.
SEC. 4. Compensation of
municipal treasury and assessment officials and other personnel.—The
salaries of Municipal Treasurers, Municipal Deputy Assessors, and other
municipal treasury and assessment personnel shall continue to be paid
in the manner provided for by law and at the rates authorized under
existing salary laws and administrative order; Provided, however,
That beginning July 1, 1976 the provinces of Rizal and Bulacan shall
cease to pay their respective shares in the salaries of the Municipal
Treasurers and Municipal Deputy Assessors of the municipalities
integrated in the Metropolitan Manila Area and, instead, the salaries of
said Municipal Treasurers and Municipal Deputy Assessors shall be
payable wholly by their respective municipalities.
SEC. 5.
Appointment and Compensation of City Treasurers, City Assessors,
Assistant City Treasurers, Assistant City Assessors, and other city
treasurers and assessment personnel in the Metropolitan Manila Area.—As
provided for under existing laws, the City Treasurers and City
Assessors of cities integrated in the Metropolitan Manila Area shall be
appointed by the President of the Philippines upon recommendation of the
Secretary of Finance. Assistant City Treasurers, Assistant City
Assessors and other city treasury and assessment personnel shall be
appointed in accordance with the provisions of existing laws.
The
incumbent City Treasurers, City Assessors and their respective
Assistants, as well as the other city treasury and assessment personnel,
shall continue in office without the necessity of being reappointed and
they may be removed from the service or otherwise disciplined only for
cause as provided for by law.
The salaries of said city treasury
and assessment officials and personnel shall continue to be paid wholly
by the city and at the rates authorized under existing salary laws and
administrative order.
Duties and Functions of City and Municipal Treasurers in the Metropolitan Manila Area.
SEC. 6. Duties and Functions of
City and Municipal Treasurers in the Metropolitan Manila Area.—The
City and Municipal Treasurers of the cities and municipalities in the
Metropolitan Manila, Area shall continue to perform their duties and
functions as such treasurers conformably with existing laws, decrees,
and rules and regulations, and as herein provided for.
In
addition, they shall collect all revenues and receipts accruing to the
Metropolitan Manila Commission as provided for herein and under the
pertinent provisions of Presidential Decree No. 824. All income
collections of City and Municipal Treasurers accruing to the
Metropolitan Manila Commission shall be remitted directly to the
Commissioner for Finance.
The City Treasurers of the Treasury and
Assessment Districts of Metropolitan Manila, by themselves or thru
their duly-authorized representatives, shall exercise their visitorial
powers to examine the books, accounts and other pertinent records of any
person, partnership, corporation, or association doing business within
the territorial jurisdiction of the city and municipalities comprising
their respective districts in the manner and for such purposes provided
for under the Local Tax Code, as amended. Municipal Treasurers and other
municipal treasury personnel of the municipalities belonging to the
district may be deputized for this purpose by the City Treasurer
concerned.
Deposit of cash in excess of Municipal Treasurer's requirements.
SEC. 7. Deposit of cash in excess of Municipal
Treasurer's requirements.—Cash pertaining to the local funds and
other funds in the custody of Municipal Treasurers, excluding those
accruing to the Metropolitan Manila Commission, in excess of the
municipal treasurer's requirements as provided for under existing
regulations shall henceforth be deposited with the City Treasurer of the
District and municipal withdrawals shall be made by the Municipal
Treasurers against such deposits. Accordingly, the Provincial
Treasurers of the provinces of Rizal and Bulacan shall remit not later
than June 30, 1976 to the City Treasurer of the District concerned the
municipal deposits of the municipalities integrated in the Metropolitan
Manila Area.
For the proper accounting of such municipal transactions, the
City Treasurers concerned shall maintain separate books of accounts.
SEC. 8. Duties and Functions of City Assessors and Municipal
Deputy Assessors in the Metropolitan Manila Area.—The City Assessors
and Municipal Deputy Assessors in the Metropolitan Manila Area shall
continue to perform their duties and functions as such assessors
conformably with existing laws, decrees, and rules and regulations.
The City Assessors of the Treasury and Assessment Districts established
under Section one hereof shall keep and maintain the records of real
property valuations of real properties located within the territorial
jurisdictions of the municipalities belonging to the District and, for
the purpose, the Provincial Assessors of Rizal and Bulacan shall
transfer, not later than June 30, 1976, to the City Assessors of the
District concerned all schedules of property valuations, tax
declaration, assessment rolls, and other related records and documents
pertaining to real properties located within the municipalities
integrated in the Metropolitan Manila Area.
SEC. 9. Preparation
of Schedule of Values for Real Property within the Metropolitan Manila
Area.—The Schedule of Values that will serve as basis for the
appraisal and assessment for taxation purposes of real properties
located within the Metropolitan Manila Area shall be prepared jointly by
the City Assessors of the Districts created under Section one hereof,
with the City Assessor of Manila acting as Chairman, in accordance with
the pertinent provisions of Presidential Decree No. 464, as amended,
otherwise known as the Real Property Tax Code, and the implementing
rules and regulations thereof issued by the Secretary of Finance.
SEC. 10. Imposition of the Basic Real Property Tax on real
properties located within the Metropolitan Manila Area and Disposition
of the Proceeds thereof.—The cities and municipalities of
Metropolitan Manila shall continue to collect the basic real property at
the rates authorized under their respective existing tax ordinances.
The provinces of Rizal and Bulacan shall continue to levy and collect
up to but not beyond June 30, 1976 the basic real property tax on real
properties located with- in the territorial jurisdictions of the
municipalities integrated in Metropolitan Manila as authorized under
their respective tax ordinances.
Effective July 1, 1976, the
Metropolitan Manila Commission shall, in lieu of the provinces of Rizal
and Bulacan, levy the provincial portion of the basic real property tax
on real properties located within the territorial jurisdictions of the
municipalities integrated in the Metropolitan Manila Area; Provided,
however, That the rate of said tax shall not be less than one-half
of one per centum nor more than one and one-half per centum
of the assessed value of the taxable real property. Beginning said date
and until such time as the Commission shall have enacted the
appropriate real property tax ordinance, the Municipal Treasurers of the
integrated municipalities shall collect for and in behalf of the
Metropolitan Manila Commission the basic real property tax heretofore
levied and collected by the aforesaid provinces at the rate of one-half
of one per centum of the assessed value of the taxable real
property.
Beginning July 1, 1976, ten per centum of the
annual collections from the basic real property tax of the Metropolitan
Manila Commission and of the municipalities in Metropolitan Manila shall
accrue to, and be divided equally among, the duly-constituted barangays
of the municipality where the property subject to the tax is situated.
Likewise, ten per centum of the annual collections from said tax
of the cities in Metropolitan Manila shall accrue to, and be divided
equally among, the duly-constituted barangays of the city where the
property subject to the tax is situated. The barangay shares shall
continue to be under the custody of the City or Municipal Treasurer
concerned.
SEC. 11. Distribution of the Proceeds of the
Additional 1% on real property levied for the Special Education Fund
under Republic Act No. 5447, as amended, collected in the cities and
municipalities of Metropolitan Manila.—Beginning July 1, 1976, the
proceeds of the additional 1% tax on real property levied for the
Special Education Fund under Republic Act No. 5447, as amended,
collected in the cities and municipalities of Metropolitan Manila shall
be distributed as follows:
In the case of collections on real properties located in the
integrated municipalities, sixty per centum thereof shall accrue
to the municipality where the Property subject to the tax is situated
and forty per centum shall be remitted to the Treasurer of the
Philippines to be expended exclusively for stabilizing the Special
Education Fund in accordance with the provisions of Section seven of
R.A. No. 5447.
In the case of collections on real properties located in the
integrated cities, sixty per centum thereof shall accrue to the city
where the property subject to the tax is situated and forty per
centum shall be remitted to the Treasurer of the Philippines to be
expended exclusively for stabilizing the Special Education Fund in
accordance with the provisions of Section seven of R.A. 5447, except
that in the case of the City of Manila, the forty per centum
accruing to the national stabilization fund aforementioned shall be
retained in the general fund of the city as provided for under R.A. No.
6238.
SEC. 12. Transfer of Certain Taxing and Other
Revenue-Raising Powers of the provinces of Rizal and Bulacan under the
Local Tax Code, as amended, to the Metropolitan Manila Commission.—Effective
July 1, 1976 the Metropolitan Manila Commission, in lieu of
the provinces of Rizal and Bulacan, shall have the power to levy
within the territorial jurisdictions of the municipalities integrated in
the Metropolitan Manila Area and subject to the provisions of Section
forty-four (Sec. 44) of the Local Tax Code, as amended, the provincial
taxes, fees and other impositions enumerated hereunder:
Tax on transfer of real property ownership. (Sec. 7
of the Local Tax Code, as amended)
Tax on Peddlers. (Sec. 15 of the Code)
Annual fixed tax per delivery truck or van of manufacturers or
producers of, or dealers in, certain products. (Sec. 15-A of the Code)
Tax on business of printing and publication. (Sec. 8 of the Code)
Sand and gravel tax. (Sec. 10 of the Code)
Amusement tax on admission. (Sec. 13 of the Code)
Fees for sealing and licensing of weights and measures.
(Sec. 14 of the Code)
Rental fee for use of municipal waters, rivers, etc. as log
pond. (Sec. 16 of the Code)
Other taxes, fees and charges that may be imposed
by provinces pursuant to the Local Tax Code, as amended.
However, the proceeds of the tax on business of printing and
publication, the sand and gravel tax, the amusement tax on admission,
the fees for sealing and licensing of weights and measures and the
rental fees for use of municipal waters, rivers etc., as log pond, shall
accrue entirely to the municipality concerned, Provided, further,
That beginning July 1, 1976 the municipalities in Metropolitan Manila
shall no longer impose and collect the amusement tax of P0.05 per
admission authorized under No. 12, letter (g) of Section 19 of the Local
Tax Code, as amended.
The proceeds of the tax on transfer of
real property ownership, the tax on peddlers, the annual fixed tax per
delivery truck or van of manufacturers or producers of, or dealers in,
certain products, and all other taxes, fees and charges referred to in
subparagraph (9) above shall accrue entirely to the Metropolitan Manila
Commission.
For purposes of effective and efficient
administration of the tax on transfer of real property ownership,
payment thereof shall be made either to the Municipal Treasurer of the
municipality where the property is located or to the City Treasurer of
the district to which the municipality belongs, and the deed of
conveyance of title to the property shall be registered in the office of
the Register of Deeds of the same District.
The Registers of
Deeds of the provinces of Rizal and Bulacan shall transfer on or before
August 31, 1976 to the Registers of Deeds of the Districts concerned the
copies of the original and transfer certificates of titles under Act
No. 496, otherwise known as the Torrens system of registration of all
real properties located in the municipalities of Metropolitan Manila,
including all records pertaining to real properties therein not covered
by Act No. 496 aforementioned.
The Provincial and City Assessors
and Registers of Deeds hereinabove specified shall see to it that said
public records or documents are correctly and completely transferred.
Thereafter, the City Assessors and Registers of Deeds of the cities of
Quezon, Caloocan, and Pasay shall install, keep and maintain the
appropriate registers for such property records and documents.
Effective July 1, 1976 and until the Metropolitan Manila Commission
shall have enacted the appropriate tax ordinances pursuant to the
provisions of the Local Tax Code, as amended, the taxes, fees and other
impositions herein provided for shall be collected by the Municipal
Treasurers of Metropolitan Manila at the rates presently feed under the
subsisting provincial tax ordinances of Rizal and Bulacan and the
proceeds thereof shall be remitted to the Metropolitan Manila Commission
or retained by the municipality concerned as provided for in this
Section.
All existing provincial tax ordinances presently
enforced in the municipalities of Metropolitan Manila, as well as the
distribution of the proceeds of the taxes and other impositions levied
thereunder, shall continue to be in full force and effect up to June 30,
1976.
Collection of the Local Franchise Tax and Occupation Tax in the Metropolitan Manila Area.
SEC. 13. Collection of the Local Franchise Tax
and Occupation Tax in the Metropolitan Manila Area.—The local
franchise tax and occupation tax accruing to the Metropolitan Manila
Commission under the provisions of Section 12 of Presidential Decree No.
824 shall, until the enactment by the Commission of appropriate tax
ordinances pursuant to the provisions of the Local Tax Code, as amended,
be collected by the City and Municipal Treasurers concerned at the rate
fixed under the corresponding city and/or provincial tax ordinances and
the proceeds thereof shall be remitted entirely to the Metropolitan
Manila Commission.
Collection of Residence, Taxes in Metropolitan Manila and Disposition of the Proceeds thereof.
SEC. 14. Collection of Residence, Taxes in Metropolitan
Manila and Disposition of the Proceeds thereof.—All residence taxes
shall continue to be collected by the treasurers of all local units
comprising the Metropolitan Manila Area as provided for under the Local
Tax Code, as amended. Proceeds from the collection of residence taxes
"A" and "B" shall continue to accrue to the local units concerned and
the National Government until June 30, 1976, conform ably with the
pertinent provisions of the Local Tax Code as amended. Thereafter,
ninety-five (95%) of collections shall accrue to the municipality or
city and five percent (5%) to the general fund of the National
Government to cover the cost of printing and distribution of the forms
and other incidental expenses.
Proceeds from the other residence taxes shall accrue to the
Metropolitan Manila Commission as provided for under Presidential Decree
No. 824; Provided, however, That five percent (5%) thereof shall
be remitted to the National Government to cover the cost of printing
and distribution of the forms and other incidental expenses.
SEC. 15. Allocations of internal revenue allotments and
specific tax allotments to the Metropolitan Manila Commission.—The
internal revenue allotments and specific tax allotments accruing to the
provinces of Rizal and Bulacan under the provisions of Presidential
Decree No. 144, as amended, and Presidential Decree No. 436, as amended,
respectively, shall remain as presently allocated up to June 30, 1976.
Thereafter, the allotment shares of the aforesaid provinces
corresponding to the area, population and ten percent equity of the
municipalities integrated within the Metropolitan Manila Area shall be
allocated and remitted to the Metropolitan Manila Commission, and the
allotments due to the provinces of Rizal and Bulacan shall be determined
on the basis of the area, population and ten percent equity
corresponding to the municipalities remaining under their respective
jurisdictions.
Statutory Contributions and Municipalities.
SEC. 16. Statutory Contributions and Municipalities.—The
municipalities comprising Metropolitan Manila shall continue to remit
to the provinces concerned their respective contributions for health,
hospital and agricultural services under existing laws up to but not
beyond June 30, 1976.
Budgets of Local Units in Metropolitan Manila.
SEC. 17. Budgets of Local Units
in Metropolitan Manila.—Conformably with Presidential decree No.
477, otherwise known as the Decree on Local Fiscal Administration, local
units in Metropolitan Manila shall formulate sound financial plans and
their budgets shall, by and large, be based on functions, activities,
and projects, in terms of expected results.
The procedures for
the adoption and implementation of the budgets, whether annual or
supplemental, as prescribed by Chapter III, Budgeting, of Presidential
Decree No. 477 and the implementing regulations thereof, shall be
followed, subject to the pertinent provisions of Presidential Decree No.
824 and implementing circulars issued thereunder.
The executive
budgets prepared by the local chief executive for the general and
infrastructure funds of the local government concerned shall cover
current operating expenditures and capital outlays; Provided, however,
That twenty percent (20%) of the estimated annual income from regular
sources in the general fund of the city or municipality shall be set
aside as local counterpart for the integrated public services and
developmental projects of the Metropolitan Manila Commission.
Remittances, however, shall be based on actual collections and effected
within the first twenty (20) days following the end of the quarter.
SEC. 18. Acquisition, Utilization, Care, Custody and Disposal
of Supplies by Local Units in Metropolitan Manila.—The acquisition,
utilization, care, custody and disposal of supplies by local units in
Metropolitan Manila shall continue to be governed by the provisions of
Presidential Decree No. 526 and its implementing regulations. However,
in place of a member of the former local legislative body, the local
chief executive shall choose as third member of the Committee on Award
any one of the department heads or chiefs of offices of the local unit
in accordance with Section 10 of Presidential Decree No. 526.
Transitory Provisions.
SEC. 19. Transitory Provisions.—(a) To prevent the
disruption of the essential public services and pending the constitution
of the Metropolitan Manila Commission, the Governor of the Metropolitan
Manila shall discharge the powers and functions of the Metropolitan
Manila Commission as enumerated in Section four of Presidential Decree
No. 824.
Pending the appointment of a Commissioner for Finance, the
Metropolitan Manila Governor may designate an official who shall
perform, in the interim the duties and functions of the Commissioner for
Finance as Provided for by Presidential Decree No. 824, including the
custody of the monies and property of the Metropolitan Manila Commission
and the receipt, disbursement and accounting of its funds in accordance
with applicable accounting and auditing regulations.
For purposes of safeguarding public funds, the Chairman of the
Commission on Audit shall appoint or designate an Auditor for
Metropolitan Manila and for each of the districts enumerated in Section
one hereof, and issue the pertinent rules and regulations for the proper
accounting and disbursement thereof. Pending the issuance of said rules
and regulations, the prescribed system of accounting for local
governments shall continue to be observed.
Issuance of Implementing Rules and Regulations and Instructions.
SEC. 20. Issuance of Implementing Rules and Regulations
and Instructions.—The Secretary of Finance shall issue such rules
and regulations as may be necessary for the proper and effective
implementation of this Decree.
The Secretary of Justice shall
issue the necessary instructions to the Registers of Deeds of the
provinces of Rizal and Bulacan and the cities of Quezon, Caloocan and
Pasay to the end that the expeditious transfer of the pertinent
documents treated in Section 12 hereof, as well as the proper
safekeeping, maintenance and management thereof, may be attained.
Repealing Clause.
SEC. 21. Repealing Clause.—All laws, decrees,
orders, proclamations, charters, and rules and regulations or parts
thereof, which are contrary to or inconsistent with this Decree are
hereby repealed, amended or modified accordingly.
Effectivity.
SEC. 22. Effectivity.—This Decree, except those
provisions otherwise indicated above, shall take effect immediately.
Done in the City of Manila on April 12 in the year of our Lord
nineteen Hundred and Seventy Six.
(Sgd.)
FERDINAND E. MARCOS
President
Republic of the Philippines
By the President:
(Sgd.)
JACOBO C. CLAVE
Presidential Executive Assistant
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
