Title
Supreme Court
Amendment on School Property Tax
Law
Batas Pambansa Blg. 400
Decision Date
Jun 3, 1983
The amendment to Section 46 of B.P. Blg. 232 in the Philippines imposes a real property tax on educational properties, with the proceeds allocated to a special private education fund managed by a local private school board for scholarships and improvement of educational facilities.

Law Summary

Allocation and Management of Tax Proceeds

  • All proceeds from this real property tax shall be deposited into a special private education fund.
  • This fund is managed and disbursed by a local private school board established in each municipality or chartered city housing private educational institutions.

Composition and Structure of the Private School Board

  • The board is chaired by the municipal or city mayor or their representative.
  • Membership includes no more than two representatives from private educational institutional taxpayers.
  • No more than two residents of the municipality or chartered city who are alumni of these institutions are included as members.
  • If a municipality or city has over fifteen private institutions, each with individual enrolments exceeding five thousand students, board membership expands to up to fourteen members.
  • The expanded membership is determined proportionately by the Minister of Education, Culture, and Sports.

Functions and Powers of the Private School Board

  • The board adopts its own rules aimed at financing annual programs and projects of institutional taxpayers.
  • Funds are allocated, in order of priority, for:
    • Scholarships for students and pupils.
    • Improvement of instructional facilities, including laboratory space and equipment.
    • Acquisition of library books and periodicals.
    • Community extension services.

Effectivity

  • The amendment takes effect immediately upon approval.

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