Question & AnswerQ&A (Act No. 1964)
The Act provides for the apportionment and disposition of internal-revenue taxes collected in the Philippine Islands on and after August 6, 1909.
License taxes on theaters, museums, cockpits, concert halls, pawnbrokers, circuses, and billiard rooms are for the exclusive benefit of the municipalities where they are assessed and collected.
The proceeds are divided equally, one-half for the provincial government and one-half for the municipal government where they are collected. However, for the Moro Province, all proceeds go to the Moro Province's treasury without division.
Any additional amount collected due to increased cedula prices shall be applied to the specific purposes outlined in the Provincial Government Act as amended by Act Numbered 1652.
Ten percent (10%) of the revenues are set aside for provincial governments for general purposes, and twenty percent (20%) for municipal governments for general municipal and school purposes.
Manila is considered both a province and municipality and receives apportionments pertaining to both categories.
No province or municipality can receive more in any fiscal year than the amount received during the fiscal year ending June 30, 1909.
Provinces that accept section 45 of Act No. 83 receive an additional 10% of revenues from the Insular Treasury to be used for the construction, repair, improvement, and maintenance of roads and bridges. The fund is apportioned among accepting provinces based on population.
Half of the 20% must be used solely for maintaining free public primary schools, including teacher salaries, building schoolhouses, and related expenses.
A portion of municipal internal revenue proportional to the non-Christian inhabitants' population is set aside as the 'non-Christian inhabitants' fund,' to be used for their benefit upon approval by the Secretary of the Interior.
Internal revenue that would accrue to municipalities (except Baguio city) is set aside as the 'township and settlement fund,' which the provincial board administers for their benefit with the Secretary of Interior's approval.
Expenditures require the advance approval of the Secretary of the Interior, whose approval is final for the settlement of accounts.