Section 5
SEC. 5. Division of proceeds of real property tax between provinces and municipalities or municipal districts. — The proceeds of the real property tax shall be applied to the use and benefited the respective provinces and municipalities or municipal districts wherein the property liable to such tax is situated. The share of a province in said tax shall be levied by the provincial board thereof whose duty it shall be, on or before the fifteen day of December of each year, to fix by resolution a uniform rate of taxation for the succeeding year, which shall be not less than one-eight nor more than four-eighths of one per centum. The share of a municipality or municipal district shall in the same manner be levied by ordinance of the municipal or municipal district council and it shall be not less than two eighths nor more than four-eighths of one per centum. In municipalities or municipal districts wherein, on the date of the approval of this Act, the municipal rate is in excess of four-eighths of one per centum, the existing rate shall remain in force until reduced by ordinance. In the Mountain Province, the municipal share is hereby levied at four eighths of one per centum and the share of the province may, in the discretion of the provincial board be levied by resolution in an amount not less than two-eighths nor more than four-eighths of one per centum: Provided, That the municipal share may be changed by ordinance to not less than two-eighths nor more than four-eighths of one per centum. The resolution of the Provincial Board and the municipal ordinance fixing the rate of real property tax shall remain in force for succeeding years unless said resolution or ordinance is amended on or before the fifteenth day of December of the year next preceding the one in which such amendment is to take effect: Provided, That any reduction in the rates of real property tax shall be subject to the approval of the Secretary of Finance.