Apportionment of real property tax on sugar machinery

Real property tax proceeds benefit provinces and the municipalities or municipal districts where the taxable property is situated.
Provincial boards must fix, by resolution before December 15th each year, a uniform provincial tax rate for the following year ranging from 1/8% to 4/8%.
Municipal or municipal district councils must likewise, by ordinance, fix a municipal tax rate ranging from 2/8% to 4/8%.
Existing municipal rates exceeding 4/8% as of the Act's approval remain until reduced by ordinance.
Special provisions exist for the Mountain Province: the municipal share is set at 4/8%, while the provincial share ranges from 2/8% to 4/8% at the discretion of the provincial board.
Changes in municipal rates in the Mountain Province must remain within 2/8% to 4/8% by ordinance.
Tax rate resolutions or ordinances remain effective unless amended by December 15th of the preceding year.
Any reduction in tax rates requires approval from the Secretary of Finance.

The gross proceeds from real property tax on machinery in sugar centrals, mills, or refineries are divided as follows:
- 25% accrues to the province.
- 60% is equally divided among the municipalities or municipal districts within the province where both the facility is located and sugar cane is grown.
- 15% accrues as an additional share to the municipality hosting the sugar central, mill, or refinery.

The Act took effect immediately upon approval on June 22, 1941, without executive approval.