Disposition of proceeds of taxes on franchises.
Section 359
SEC. 359. Disposition of proceeds of taxes on franchises. — Where the grantee of any franchise, his lessees, successors, or assigns have issued bonds with interest guaranteed by the Government of the Philippines, the franchise tax shall accrue in its entirety to the National Government until the guaranty ceases. Taxes upon franchises whose obligations are not thus guaranteed shall be applied as follows: a) Where the franchise is for the operation of a submarine telegraphic cable, the entire franchise tax shall accrue to the National Government. (b) Where the franchise is for a steam railroad or marine railway operating in one or more municipalities, five-tenths of the franchise tax shall accrue to the National Government, two-tenths to the province or provinces concerned, and three-tenths to the municipality or municipalities concerned; and where more than one province participates in the provincial share, only so much of their population shall be considered in making the division as is found in the municipality or municipalities wherein the franchise is operated in the particular province. (c) Where the franchise is for an electric or tramway line operating in one or more municipalities, one-fifth of the franchise tax shall accrue to the National Government, one-fifth to the province or provinces concerned and three fifths to the municipality or municipalities concerned; and where more than one province participates, the same rule of apportionment shall be observed as in the subsection preceding. (d) Where the franchise is for the operation of a public-service plant or system different from those specified above, and the same is doing business in one or more municipalities, one-fifth of the franchise tax shall accrue to the National Government, one-fifth to the municipality or municipalities concerned; and where more than one province or municipality participates, the apportionment shall be in proportion to the gross receipts from the business transacted within their respective limits