Classification of municipalities.
Section 4
SEC. 4. Classification of municipalities.—Municipalities are divided into six main classes according to their average annual income during the last four fiscal years, as follows: First Class.—Municipalities that have obtained an average total revenue of one million five hundred thousand pesos or more per annum; Second Class.—Municipalities that have obtained an average total revenue of one million pesos or more but less than one million five hundred thousand pesos per annum; Third Class.—Municipalities that have obtained an average total revenue of five hundred thousand pesos or more but less than one million pesos per annum; Fourth Class.—Municipalities that have obtained an average total revenue of three hundred thousand pesos or more but less than five hundred thousand pesos per annum; Fifth Class.—Municipalities that have obtained an average total revenue of one hundred thousand pesos or more but less than three hundred thousand pesos per annum; and Sixth Class.—Municipalities that have obtained an average total revenue of less than one hundred thousand pesos per annum. Revenue, as used herein, shall be interpreted to mean all income and receipts accruing to the municipality except unappropriated balances, proceeds from bond issues, proceeds from or repayment of loans, aids from the National Government, private contribution or donations, return of advances to economic enterprises, sales of fixed assets, income from sale of real property, prior year's adjustment, and other receipts not regularly recurring each fiscal year.