Question & AnswerQ&A (Republic Act No. 5447)
The purpose of Republic Act No. 5447 is to create a Special Education Fund derived from additional real property tax and certain portions of taxes on Virginia-type cigarettes and duties on imported leaf tobacco to financially support various educational activities in the Philippines.
The Fund is financed by (a) a portion of the taxes on Virginia-type cigarettes and duties on imported leaf tobacco, and (b) an additional annual tax of one percent on the assessed value of real property.
The Fund is used exclusively for extension classes, construction and repair of school buildings, payment and adjustment of teachers' salaries, preparation and purchase of textbooks, purchase and repair of school equipment, establishment of printing plants, purchase of teaching materials, citizenship programs, education research, government scholarships, and promotion of physical education.
An annual additional tax of one percent on assessed real property value is imposed, collected by municipal or city treasurers in four equal installments, with exemptions for properties valued at 3,000 pesos or less and a maximum combined real property tax rate of three percent.
50% is retained by the municipality, 20% is remitted to the provincial treasurer, and 30% is remitted to the Treasurer of the Philippines to stabilize the Special Education Fund.
Offenders may be fined up to 10,000 pesos or imprisoned up to six years, or both, and government officials may be dismissed with prejudice and disqualified from public office.
Provincial, City, and Municipal School Boards are composed respectively of the division superintendent/district supervisor, representatives of the local executive (governor, mayor), treasurers, local legislative representatives, and the President or representative of the League of Parents-Teachers Associations.
They determine annual educational budgetary needs, apply for shares in the Special Education Fund, authorize fund disbursements based on approved budgets, and perform other assigned duties without compensation.
They are tasked with promulgating rules and regulations for effective enforcement of the Act, including publication of these regulations in newspapers within 15 days of promulgation.
After setting aside shares for local governments and administrative costs, the balance is allocated 10% to the national share of the Special Education Fund, 40% to the Philippine Virginia Tobacco Administration Tobacco Fund, and 50% to the general fund of the National Government.