Supreme Court Decisions
SOURCE EXPLAINERMandanas: why the tax base matters to LGUs
The ruling addressed the statutory restriction of the LGU share to national internal revenue taxes.
The cited official text was checked for the provisions or ruling discussed here. This is a focused source reading, not a certification that no later development affects the subject.
What happened
Consolidated petitions questioned how the just share of local government units in national taxes was computed. The Supreme Court partially granted the petitions.
What the law/case says
The Court declared the phrase “internal revenue” in section 284 of the Local Government Code unconstitutional and deleted it. The ruling addressed the base for the LGU share, identified included and excluded collections, and treated the effect of the declaration prospectively.
Why it matters
The tax base used in the allocation formula affects local fiscal planning. But a judgment about that base is not itself a current-year appropriation, allotment notice or project-funding approval.
Practical takeaway
For a particular fiscal year, check the applicable DBM documents and subsequent implementing measures rather than calculating an LGU entitlement from this case note. Read the disposition and its qualifications before describing the ruling as covering every government receipt.
Official source/citation
This article focuses on the 3 July 2018 decision. Later resolutions and fiscal or devolution measures must be considered separately for present implementation.