WHEREAS, the City of Manila needs immediate assistance to alleviate the financial plight of public school teachers and avert a crisis which could be exploited by unscrupulous elements;

WHEREAS, before the promulgation of Presidential Decree No. 1913, the proceeds of the additional one per cent real property tax levied for the Special Education Fund under Republic Act No. 5447, as amended, accrued in its entirety pursuant to Republic Act Nos. 6053 and 6238 to the City of Manila with sixty per cent thereof accruing to the Special Education Fund and Forty per cent to the General Fund;

WHEREAS, time is of the essence and it has become urgent and imperative that the revenue loss suffered by the City of Manila under the provisions of Presidential Decree No. 1913 be restored;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order the following:

SECTION 1. Subsection (b) of Section 87 of Presidential Decree No. 464, otherwise known as the Real Property Tax Code, as amended, is hereby further amended to read as follows:

“SEC. 87. Application of proceeds. – xxx xxx xxx

“(b) The entire proceeds of the additional one per cent real property tax levied for the Special Education Fund created under Republic Act No. 5447 collected in the province or city on real property situated in their respective territorial jurisdictions shall be distributed as follows:

“(1) Collections in the provinces: Fifty-five percent shall accrue to the municipality where the property subject to the tax is situated; twenty-five per cent shall accrue to the province; and twenty per cent shall be remitted to the Treasurer of the Philippines.”

“(2) Collections in the cities and in the cities and municipalities of Metro Manila; Eighty per cent shall be retained by cities, including cities and municipalities of Metro Manila, and twenty per cent shall be remitted to the Treasurer of the Philippines; PROVIDED, HOWEVER, THAT IN THE CITY OF MANILA, COLLECTIONS FROM THE ABOVE-MENTIONED ADDITIONAL ONE PERCENT REAL-PROPERTY TAX LEVIED UNDER REPUBLIC ACT NO. 5447, AS AMENDED, SHALL ACCRUE IN ITS ENTIRETY TO THE SPECIAL EDUCATION FUND.”

SECTION 2. Section 87 (e) of the same Code is hereby amended to read as follows:

“(e) The provisions of existing laws to the contrary notwithstanding, the proceeds of the Special Education Fund accruing to the LOCAL SCHOOL BOARD shall be used for the salary adjustment, allowances and other fringe benefits of local and national public school teachers, in addition to the other purposes mentioned in Section 1 of Republic Act No. 5447, as amended.”

SECTION 3. All acts, laws, decrees, rules and regulations or parts thereof inconsistent herewith are hereby repealed or modified accordingly.

SECTION 4. This Decree shall take effect on July 1, 1984.

DONE in the City of Manila, this 8th day of February, in the year of Our Lord, nineteen hundred and eighty-five.

(SGD.) FERDINAND E. MARCOS
President of the Philippines

By the President:

(SGD.) JUAN C. TUVERA
Presidential Executive Assistant