Distribution of proceeds.
SEC. 86. Distribution of proceeds.—(a) The
proceeds of the real property tax, except as otherwise provided in this
Code, shall accrue to the province, city or municipality where the
property subject to the tax is situated and shall be applied by the
respective local government unit for it own use and benefit.
Barrio shares in real property tax collections. The annual
shares of the barrios in real property tax collections shall be as
follows:
Five per cent of the real property tax collections of the
province and another five percent of the collections of the
municipality shall accrue to the barrio where the property subject to
the tax is situated.
In the case of the city, ten per cent of the collections
of the tax shall likewise accrue to the barrio where the property is
situated.
Thirty per cent of the barrio shares herein referred to be may
spent of salaries or per diems of the barrio officials and other
administrative expenses, while the remaining seventy per cent shall be
utilized for development projects approved by the Secretary of Local
Government and Community Development or by such committee created, or
representatives designated by him.
Application of proceeds.
SEC. 87. Application
of proceeds.— (a) The proceeds of the real property tax pertaining
to the city and to the municipality shall accrue entirely to their
respective general funds. In the case of the province, one-fourth
thereof shall accrue to its road and bridge fund and the remaining
three-fourths, to its general fund.
The entire proceeds of the additional one per cent real
property tax levied for the Special Education Fund created under R.A.
No. 5447 collected in the province or city on real property situated in
their respective territorial jurisdictions shall be distributed as
follows:
Collections in the provinces: Fifty per cent shall
accrue to the municipality where the property subject to the tax is
situated; twenty per cent shall accrue to the province; and thirty per
cent shall be remitted to the Treasurer of the Philippines to be
expended exclusively for stabilizing the Special Education Fund in
municipalities, cities and provinces in accordance with the provisions
of Section seven of R.A. No. 5447.
Collections in the cities: Sixty per cent shall be
retained by the city; and forty per cent shall be remitted to the
Treasurer of the Philippines to be expended exclusively for stabilizing
the special education fund in municipalities, cities and provinces as
provided under Section 7 of R.A. No. 5447.
However, any increase in the shares of provinces,
cities and municipalities from said additional tax accruing to their
respective local school boards commencing with fiscal year 1973-74 over
what has been actually realized during the fiscal year 1971-72 which,
for purposes of this Code, shall remain as the base year, shall be
divided equally between the general fund and the special education fund
of the local government units concerned. The Secretary of Finance may,
however, at his discretion, increase to not more than seventy-five per
cent the amount that shall accrue annually to the local general fund.
The proceeds of all delinqeunt taxes and penalties, as well
as the income realized from the use, lease or other disposition of real
property acquired by the province or city at a public auction in
accordance with the provisions of this Code, and the proceeds of the
sale of the delinquent real property or of the redemption thereof, shall
accrue to the province, city or municipality in the same manner and
proportion as if the tax or taxes had been paid in regular course.
The proceeds of the additional real property tax on idle
private lands shall accrue to the respective general funds of the
province, city and municipality where the land subject to the tax is
situated.
