Franchise Tax and Allocation of Proceeds
- The grantee must pay a franchise tax equivalent to 25% of its gross earnings (commissions/fees from total wager funds) to the national treasury.
- The tax is allocated as follows:
- 3% to the national government.
- 5% to the City of Kalookan or the city/municipality where the racetrack is actually located.
- 5% to public health workers under 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.
- The franchise tax must be paid monthly.
- The payment of the franchise tax is in lieu of all other taxes (except income tax) on properties owned by the grantee.
- The grantee is expressly exempted from other forms of local or national taxes on its properties.
Effectivity of the Act
- The Act takes effect 15 days after publication in a newspaper of general circulation in Metro Manila.
- The law lapsed into effect on June 6, 1997, by operation of law, without the President's signature, in accordance with the Constitution.