Local Government Code

Definition

The Local Government Code of the Philippines, officially designated as Republic Act No. 7160, is the comprehensive law defining the administration, taxing powers, and responsibilities of Local Government Units (LGUs). Approved in 1991, the code decentralizes national power, authorizing municipalities and provinces to draft zoning ordinances, reclassify agricultural land, collect Real Property Tax (RPT), and enforce local building permits. (Official Gazette)

Also Known As

• LGC
  • Local Government Code of 1991
• Republic Act No. 7160
  • RA 7160
  • LGC of 1991

Identities

Source Type	Identity
Wikipedia	Local Government Code
Wikidata	Q6664052
DBpedia	Local_Government_Code
ProductOntology	N/A
Wiktionary	local government
Library of Congress Subject Headings (LCSH)	Local government — Law and legislation — Philippines
MeSH	N/A
NCBI Taxonomy	N/A
AGROVOC	N/A
Google Scholar	Local Government Code RA 7160 real property tax LGU land reclassification
ConceptNet	N/A
OpenCyc	N/A

Examples and Analogies

*   **LGU Tax Collection:** A city government collecting annual real property taxes under the valuation rules of the Local Government Code.
*   **Real Property Tax:** The main canonical article details the tax rates, tax assessments, payment schedules, and LGU penalties in the Philippines.

Usage Scenarios

*   **Reclassifying raw land:** A developer files an application at the municipal council to reclassify agricultural land under the LGC reclassification caps.
*   **Filing a tax protest:** A property owner files a protest at the Local Board of Assessment Appeals challenging an LGU real property appraisal.

Strategies

*   Cross-reference property tax rates and land reclassification rules with the main Real Property Tax article.
*   Check local municipal zoning maps to see if the property lies within designated urban expansion corridors under LGC plans.

Security and Safety Measures

*   Verify all property purchases are cleared of RPT arrears at the local City Treasurer's Office before transfer.
*   Ensure that any land conversion proposals satisfy the 15% reclassification ceiling mandated by Section 20 of RA 7160.

Historical Context

Signed into law on October 10, 1991 by President Corazon Aquino, the Local Government Code aimed to empower LGUs through decentralization. By transferring the authority to collect real property taxes and manage land zoning from the national government to local assessors and municipal councils, the law restructured regional real estate development.

Challenges and Controversies

*   **Varying LGU Tax Appraisals:** Different LGUs apply varying real property assessment methods, leading to inconsistent tax liabilities for developers.
*   **Arbitrary Zoning Ordinances:** Zoning changes by local councils can sometimes affect developer plans, requiring administrative appeals under the Code.

Related Topic

*   [[Real Property Tax]]
*   [[Zoning]]
*   [[Raw Land Philippines]]
*   [[Department of Human Settlements and Urban Development]]

References

1. Official Gazette of the Republic of the Philippines