REVENUE MEMORANDUM CIRCULAR NO. 42-2009 issued on July 29, 2009 publishes the full text of the Department of Finance (DOF)-Department of Budget and Management (DBM)-Department of Interior and Local Government (DILG)-Department of Environment and Natural Resources (DENR) Joint Circular No. 2009-1 on the updated guidelines and procedures on the release of the share of Local Government Units (LGUs) from the collections derived by the national government from mining taxes.
     The said national government agencies shall endeavor to establish and share among themselves, on a timely basis, information and an updated database to facilitate the exchange of information needed for the smooth and reliable processing and release of the share of LGUs from mining taxes.
        Pursuant to the Circular, the BIR shall undertake the following:

1. 1. 1. 1. Submit to the DBM, in coordination with DOF, for budget preparation purposes, the estimated or projected mining tax to be collected for the current year and the corresponding 40% share of the LGUs on or before March 15 of every year. The said estimated or projected mining tax collection shall be equivalent to the amount of Excise Tax from the mining industry allocated from the total revenue target of the BIR.
         2. Prepare and approve a Joint Certification with the Bureau of the Treasury (BTr), for budget execution purposes, the actual collections from mining taxes during each calendar quarter and the schedule of the corresponding shares of the beneficiary LGUs. The said certification shall be transmitted to the BTr, for validation and approval purposes, within 75 days immediately after the end of the calendar quarter.In the preparation of the said schedule of shares of certain LGUs where the mining sites/operations are located in two (2) or more provinces, or in two (2) or more component cities, or in two (2) or more barangays, the updated masterlist of land area officially issued by the Land Management Bureau (LMB) and the updated census of population officially issued by the National Statistics Office shall be adopted as basis in computing the allocable share of the affected LGUs.
         3. Determine the correct mining taxes paid and collected during the immediately preceding year based on the estimated and actual volumes and values of the mineral products submitted by the Mines and Geosciences Bureau (MGB).

     Pursuant to Section 292 of Republic Act No. 7160, the 40% share of the LGUs from the preceding year’s collections of mining taxes shall be distributed as follows: