SOURCES OF INCOME IN THE BARANGAY

     A. The barangay has the power of taxation. It is the power of the barangay to raise revenue by imposing taxes, fees, and other charges on the barangay residents and business.

     The barangay may levy taxes, fees, and charges:

     1.  Taxes - on stores and retailers

• Gross sales or receipts of Php. 50,000.00 or less in the case of cities
• Gross Sales or receipts of Php. 30,000,00 or less in the case of municipalities, at a rate not exceeding one percent (1%) on such gross sales or receipts.

     2.  Service Fees or charges

     3.  Barangay Clearance

     4.  Other fees and charges such as

• Commercial breeding of fighting cocks, cockfights and cockpits
• On places of recreation which charge admission fees
• On billboards, signboards, neon signs and outdoor advertisements.

     B. Shares of the Barangay in Taxes Collected

      1.  Fifty percent (50%) of the proceeds of the community tax collected through the barangay treasurer shall accrue to the barangay where the tax is collected. (sec. 164c)

      2.  Proceeds of real property tax shall be as follows:

• In case of provinces, twenty-five percent (25%) shall accrue to the barangay where the property is located. ( Sec. 271-a3)
• In case of cities, thirty percent (30%) shall be distributes among the component barangays of the cities where the property is located in the following manner; (Sec. 271-b2)

            i.   Fifty percent (50%) shall accrue to the barangay where the property is located.

            ii.  Fifty percent (50%) shall accrue equally to all component barangays of the city

• In case of municipalities within Metro Manila area, thirty percent (30%) shall be distributed among the component barangays of the municipality where the property is located in the following manner: (sec 271-c3)

            i.   Fifty percent (50%) shall accrue to the barangay where the property is located.

            ii,  Fifty percent (50%) shall accrue equally to all component barangays of the municipality.

            iii. The barangay shall be entitled to forty percent (40%) of the proceeds collected by the province out of the sand, gravel and other quarry materials extracted from the barangay concerned.

      C. Shares of the barangay in the proceeds of taxes collected by the national government.

           The following are the shares of barangays from the national government:

• Twenty percent (20%) of the internal revenue allotment share.
• Thirty five percent (35%) of the forty percent (40%) of the gross collection derived by the national government from the utilization of national wealth.