MALACAŅANG
M a n i l a

PRESIDENTIAL DECREE No. 921 April 12, 1976

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 cities and municipalities in Metropolitan Manila under the provisions of Presidential Decree No. 824 requires a modification of the existing local tax structure and established financial arrangements 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 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:

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 District Caloocan City, Malabon, Navotas and Valenzuela
Fourth District Pasay City, Makati, Parañaque, 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.

Section 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 laws 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.

Section 3. Appointment of Municipal Treasurers, Assistant Municipal Treasurers, Municipal Deputy Assessors and other municipal treasury and assessment personnel. Effective July 1, 1976, that 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.

Section 4. Compensation of municipal treasury and assessment official 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.

Section 5. Appointment and Compensation of City Treasurers, City Assessors, Assistant City Treasurers, Assistant City Assessors, and other city treasury 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.

Section 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 revenue 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 Commission for Finance.

The City Treasurers of the Treasury and Assessment Districts of Metropolitan Manila, by themselves, or thru their duly-authorized representative, 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 Treasurers concerned.

Section 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.

Section 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 Assessor 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.

Section 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 implementing rules and regulations thereof issued by the Secretary of Finance.

Section 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 tax 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 within 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, 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 jurisdiction 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.

Section 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:

(a) 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.

(b) 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. No. 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.

Section 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:

1. Tax on transfer of real property ownership. (Sec. 7 of the Local Tax Code, as amended)

2. Tax on Peddlers. (Sec 15 of the Code)

3. Annual fixed tax per delivery truck or van of manufacturers or producers of, or dealers in, certain products. (Sec 15-A of the Code)

4. Tax on business of printing and publication. (Sec. 8 of the Code)

5. Sand and gravel tax. (Sec. 10 of the Code)

6. Amusement tax on admission. (Sec. 13 of the Code)

7. Fees for sealing and licensing of weights and measures. (Sec. 14 of the Code)

8. Rental fee for use of municipal waters, rivers, etc. as long pond. (Sec. 16 of the Code)

9. 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 water, 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 Register 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 fixed 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.

Section 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 provincial tax ordinances and the proceeds thereof shall be remitted entirely to the Metropolitan Manila Commission.

Section 14. Collection of Residence Taxes in Metropolitan Manila and Disposition of the Proceeds thereof. All resident 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 or residence taxes "A" and "B" shall continue to accrue to the local units concerned and the National Government until June 30, 1976, conformably with the pertinent provisions of the Local Tax Code, as amended. Thereafter, ninety-five percent (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.

Section 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.

Section 16. Statutory Constributions of 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.

Section 17. Budget 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 II, Budgeting, of Presidential Decree No. 477 and the implementing regulations thereof, shall be followed, subject to 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.

Section 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.

Section 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.

(b) 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.

(c) 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 regulation, the prescribed system of accounting for local governments shall continue to be observed.

Section 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.

Section 21. Repealing Clause. All laws, decrees, orders, proclamations, charter, and rules and regulations or parts thereof, which are contrary to or inconsistent with this Decree are hereby repealed, amended or modified accordingly.

Section 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.


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