Law Summary

SECTION 1: Grant of Franchise

• Explanation: This section amends the original Republic Act No. 7978, granting the Metro Manila Turf Club, Inc. a franchise for the construction and operation of a racetrack.
• Definitions:
  • Grantee: Metro Manila Turf Club, Inc., a corporation under Philippine law.
• Key Provisions:
  • The franchise is granted for a period of 25 years from the effectivity of this Act.
  • The grantee is authorized to:
    • Construct and operate one racetrack in Kaloocan or within the provinces of Batangas, Cavite, Laguna, and Rizal.
    • Establish branches for booking purposes and conduct horse races with betting.
    • Utilize mechanical, electrical, and/or computerized totalizators for betting.
• Important Requirements:
  • The grantee must carry out all necessary actions to implement these rights.

SECTION 2: Franchise Tax

• Explanation: This section outlines the tax obligations of the grantee in consideration of the granted franchise.
• Key Provisions:
  • The grantee is required to pay a franchise tax of 25% on gross earnings derived from betting commissions/fees.
• Distribution of Tax:
  • 3% to the national government.
  • 5% to the City of Kaloocan or the municipality where the racetrack is located.
  • 5% to public health workers (per the Magna Carta for Public Health Workers).
  • 3% to the cardiovascular program of the Department of Health.
  • 5% to the Philippine Anti-Tuberculosis Society.
  • 2% to the White Cross.
  • 2% to the Water For Life program of the Department of Health.
• Payment Schedule:
  • The tax is to be paid monthly.
• Exemptions:
  • The grantee is exempt from all other taxes except income tax, for both real and personal properties.

SECTION 3: Effectivity

• Explanation: This section specifies the effective date of the Act.
• Key Provision:
  • The Act shall take effect 15 days after publication in a newspaper of general circulation in Metro Manila.
• Important Note:
  • The Act lapsed into law on June 6, 1997, without the President's signature, in accordance with Article VI, Section 27(1) of the Constitution.

Key Takeaways

• Franchise Duration: The Metro Manila Turf Club, Inc. is granted a 25-year franchise for racetrack operations.
• Tax Obligations: A franchise tax of 25% on gross earnings must be paid monthly, with specific allocations to various health and local government entities.
• Exemptions: The grantee enjoys exemptions from other taxes, excluding income tax.
• Effective Date: The Act took effect 15 days post-publication, having lapsed into law automatically.