Book II - Title Two - Chapter 7

Sec. 271. Distribution of Proceeds. - The proceeds of the basic real property tax, including interest thereon, and proceeds from the use, lease or disposition, sale or redemption of property acquired at a public auction in accordance with the provisions of this Title by the province or city or a municipality within the Metropolitan Manila Area shall be distributed as follows:

1. In the case of provinces:
1. province - Thirty-five percent (35%) shall accrue to the general fund;


2. municipality - Forty percent (40%) to the general fund of the municipality where the property is located; and


3. Barangay - Twenty-five percent (25%) shall accrue to the Barangay where the is located.


2. In the case of cities:
1. city - Seventy percent (70%) shall accrue to the general fund of the city; and
2. Thirty percent (30%) shall be distributed among the component Barangays of the cities where the property is located in the following manner:
1. Fifty percent (50%) shall accrue to the Barangay where the property is located;


2. Fifty percent (50%) shall accrue equally to all component Barangays of the city; and
3. In the case of a municipality within the Metropolitan Manila Area:
1. Metropolitan Manila Authority - Thirty-five percent (35%) shall accrue to the general fund of the authority;


2. municipality - Thirty-five percent (35%) shall accrue to the general fund of the municipality where the property is located;


3. Barangays - Thirty percent (30%) shall be distributed among the component Barangays of the municipality where the property is located in the following manner:


1. Fifty percent (50%) shall accrue to the Barangay where the property is located;


2. Fifty percent (50%) shall accrue equally to all component Barangays of the municipality.
4. The share of each Barangay shall be released, without need of any further action, directly to the Barangay treasurer on a quarterly basis within five (5) days after the end of each quarter and shall not be subject to any lien or holdback for whatever purpose.

Sec. 272. Application of Proceeds of the Additional One Percent SEF Tax. - The proceeds the additional one percent (1%) tax on real property accruing to the Special Education Fund (SEF) shall be automatically released to the local school boards: Provided, That, in case of provinces, the proceeds shall be divided equally between the provincial and municipal school boards: Provided, however, That the proceeds shall be allocated for the operation and maintenance of public schools, construction and repair of school buildings, facilities and equipment, educational research, purchase of books and periodicals, and sports development as determined and approved by the Local School Board.

Sec. 273. Proceeds of the Tax on Idle Lands. - The proceeds of the additional real property tax on idle lands shall accrue to the respective general fund of the province or city where the land is located. In the case of a municipality within the Metropolitan Manila Area, the proceeds shall accrue equally to the Metropolitan Manila Authority and the municipality where the land is located.

Sec. 274. Proceeds of the Special Levy. - The proceeds of the special levy on lands benefited by public works, projects and other improvements shall accrue to the general fund of the local government unit which financed such public works, projects or other improvements.