REPUBLIC ACT No. 5447
AN ACT CREATING A SPECIAL EDUCATION FUND TO BE CONSTITUTED FROM THE PROCEEDS OF AN ADDITIONAL REAL PROPERTY TAX AND A CERTAIN PORTION OF THE TAXES ON VIRGINIA-TYPE CIGARETTES AND DUTIES ON IMPORTED LEAF TOBACCO, DEFINING THE ACTIVITIES TO BE FINANCED, CREATING SCHOOL BOARDS FOR THE PURPOSE, AND APPROPRIATING FUNDS THEREFROM.
Section 1. Declaration of policy; creation of Special Education Fund. It is hereby declared to be the policy of the government to contribute to the financial support of the goals of education as provided by the Constitution. For this purpose, there is hereby created a Special Education Fund, hereinafter referred to as the Fund, to be derived from the additional tax on real property and from a certain portion of the taxes on Virginia-type cigarettes and duties on imported leaf tobacco, hereinafter provided for, which shall be expended exclusively for the following activities of the Department of Education:
(a) the organization and operation of such number of extension classes as may be needed to accommodate all children...
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Republic Acts
An Act Creating A Special Education Fund To Be Constituted From The Proceeds Of An Additional Real Property Tax And A Certain Portion Of The Taxes On Virginia-Type Cigarettes And Duties On Imported Leaf Tobacco, Defining The Activities To Be Financed, Creating School Boards For The Purpose, And Appropriating Funds Therefrom.
Republic Act No. 5447
Summary of Republic Act No. 5447
Declaration of Policy and Creation of Special Education Fund (Section 1):
- Declares the policy of the government to contribute to the financial support of education goals.
- Creates a Special Education Fund derived from additional tax on real property and a portion of taxes on Virginia-type cigarettes and duties on imported leaf tobacco.
- The Fund shall be expended exclusively for the following activities of the Department of Education:
a. Organization and operation of extension classes to accommodate all children of school age desiring to enter Grade I, including creation of teaching positions. Priority shall be given to barrios. (Section 1a)
b. Construction, repair, and acquisition of sites for elementary school buildings, workshops, and related facilities for practical arts, home economics, and vocational courses. Priority shall be given based on actual needs and total requirements of the country. (Section 1b)
c. Payment and adjustment of salaries of public school teachers under Republic Act No. 5168 and benefits under Republic Act No. 4670. (Section 1c)
d. Preparation, printing, and/or purchase of textbooks, teachers' guides, forms, and pamphlets approved for use in public schools. (Section 1d)
e. Purchase, improvement, repair, and refurbishing of machinery, laboratory, technical equipment, and apparatus, including spare parts needed by the Bureau of Vocational Education and secondary schools offering vocational courses. (Section 1e)
f. Establishment of a printing plant for the printing needs of the Department of Education and improvement of regional printing plants in vocational schools. (Section 1f)
g. Purchase of teaching materials such as workbooks, atlases, flip charts, science and mathematics teaching aids, and simple laboratory devices for elementary and secondary classes. (Section 1g)
h. Implementation of the existing program for citizenship development in barrio high schools, folk schools, and adult education classes. (Section 1h)
i. Undertaking of education research, including that of the Board of National Education. (Section 1i)
j. Granting of government scholarships to poor but deserving students under Republic Act No. 4090. (Section 1j)
k. Promotion of physical education, such as athletic meets. (Section 1k)
Financing Sources of the Fund (Section 2):
- The Fund shall consist of the proceeds of:
a. A portion of the taxes on Virginia-type cigarettes and duties on imported leaf tobacco.
b. An additional tax on real property.
Allocation of Taxes on Virginia-type Cigarettes and Duties on Imported Leaf Tobacco (Section 3):
- The entire collection from specific taxes on locally-manufactured Virginia-type cigarettes and tariff duties on imported leaf tobacco shall be allocated as follows:
a. The share of local governments in the regular internal revenue allotment shall be computed and set aside for distribution to local governments.
b. 1% shall be retained by the Bureau of Internal Revenue for the purchase of equipment and improvement of collection methods.
c. The balance shall be distributed as follows: 10% to the national share of the Fund, 40% to the Philippine Virginia Tobacco Administration Tobacco Fund, and 50% to the general fund of the National Government.
Imposition of Additional Tax on Real Property and Disposition of Proceeds (Section 4):
- An annual additional tax of 1% on the assessed value of real property is imposed, in addition to the regular real property tax.
- The additional tax shall not be collected if the total assessed valuation of real property assessable to any one person is not in excess of ₱3,000.
- The total real property tax shall not exceed a maximum of 3%.
- The additional tax shall be due and payable in four equal installments: March 31, June 30, September 30, and December 31.
- The assessment made under Commonwealth Act No. 470 and other applicable laws shall constitute the basis for assessment and collection of the additional levy.
- The additional tax shall be collected by the municipal or city treasurer where the real property is situated and distributed as follows:
a. For municipalities: 50% shall be retained by the municipality, 20% shall be remitted to the provincial treasurer, and 30% shall be remitted to the Treasurer of the Philippines for stabilizing the Special Education Fund.
b. For cities: 60% shall be retained by the city, and 40% shall be remitted to the Treasurer of the Philippines for stabilizing the Special Education Fund.
Creation of Local School Boards (Section 5):
- In every province, city, or municipality, a Provincial School Board, City School Board, or Municipal School Board shall be established, respectively.
- The composition of the school boards is specified for each level (provincial, city, municipal).
- The performance of duties and responsibilities of the appointed or nominated members shall not be delegated.
Functions of Provincial, City, or Municipal School Boards (Section 6):
- Determine the annual budgetary needs for the operation and maintenance of public schools and the cost of meeting such needs, in accordance with criteria set by the Bureau of Public Schools or Bureau of Vocational Education.
- Apply for a share in the fund established under Section 4A(3) and 4B(2) through the Division Superintendent of Schools or Superintendent of Vocational Education.
- Authorize the provincial, city, or municipal treasurer to disburse funds from the respective share in the Special Education Fund pursuant to the prepared budget.
- Discharge other functions and duties assigned by the Bureau of Public Schools or Bureau of Vocational Education.
- The chairman and members shall perform their duties without compensation or remuneration, except for necessary traveling expenses for non-government officials.
- The boards shall meet at least once a month, and three members shall form a quorum. The affirmative vote of three members is necessary to approve the budget.
Expenditure of the Special Education Fund (Section 7):
- Each school board shall prepare the budget of receipts and expenditures for the ensuing fiscal year by August 15 each year.
- Budgets approved by the school boards shall be final and executory unless an appeal is taken within 15 days to the Director of Public Schools or Director of the Bureau of Vocational Education for final decision within 30 days.
- Any school need that cannot be covered by the budget shall be forwarded to the Department of Education for information.
- Expenditure of the share of the National Government shall be in pursuance of appropriations made by law and included in the budgets of the Bureau of Public Schools and Bureau of Vocational Education.
- In allocating the Fund corresponding to the National Government, the Department of Education shall follow a schedule of priorities starting with the municipalities, cities, or provinces belonging to the lowest classification made by the Department of Finance.
- Starting with the fourth year, municipalities, cities, and provinces enjoying priority shall continue to be entitled thereto if their total collection from real estate taxes during the preceding three fiscal years has increased by an average of at least 15%.
- The collections accruing to the Fund during the fiscal year ending June 30, 1969, are appropriated to fund the appropriations from the general and bond funds for the Bureau of Public Schools and Bureau of Vocational Education that cannot be programmed for lack of funds, with specific amounts appropriated for various purposes, including adjustment and payment of teachers' salaries, repair of school buildings, aid to barrio high schools, government scholarships, establishment of a printing plant, interscholastic meet expenses, and education research.
Administrative Provisions (Section 8):
- All administrative, special, and general provisions of law, including those pertaining to the assessment, remission, collection, and refund of real property taxes not inconsistent with this Act, are made applicable.
Turnover of Collections and Release of the Fund (Section 9):
- Municipal or city treasurers shall retain the shares of the municipal or city government and turn over the portions of their collections appertaining to the provincial government and/or the National Government to the respective treasurers monthly within 15 days of every succeeding month.
- No portion of the collections may be transferred or diverted to the general or any other fund of the National Government, provinces, cities, or municipalities, or used or expended for any purpose other than those specified in this Act.
- It shall be the ministerial duty of the Budget Commissioner, Treasurer of the Philippines, all municipal, provincial, and city treasurers, and their officials and employees to effect releases from the Fund within 15 days from receipt of the order and/or authorization by the Secretary of Education (for the share of the National Government) or by the municipal, city, or provincial school boards (for their respective shares).
Rules and Regulations (Section 10):
- The Secretary of Education and the Secretary of Finance, upon the recommendation of the Director of Public Schools, Director of Vocational Education, and Treasurer of the Philippines, shall promulgate all rules and regulations for the effective enforcement of the provisions of this Act.
- The rules and regulations shall be published within 15 days from promulgation in three newspapers of general circulation in the Philippines and shall take effect 15 days after their publication.
Penal Provision (Section 11):
- Any person who fails or refuses to turn over collections of the taxes and penalties within the period fixed in Section 9, or who delays, obstructs, or prevents the same, or who fails or refuses to effect releases from the Fund within the period fixed in Section 9, or who delays, obstructs or prevents the same, or who orders, causes, or effects the transfer or diversion of the collections of this Fund or any portion thereof, shall be punished with a fine not exceeding ₱10,000 or imprisonment not exceeding 6 years, or both, at the discretion of the court.
- If the offender is a government official or employee, he shall, in addition, be dismissed from the service with prejudice to reinstatement and with disqualification for election or appointment to any public office.
Separability Clause (Section 12):
- The provisions of this Act are declared separable, and if any part, section, or provision is held invalid or unconstitutional, no other part, section, or provision shall be affected.
Repealing Clause (Section 13):
- All Acts, parts of Acts, executive orders, ordinances, rules, and regulations inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.
Effectivity (Section 14):
- This Act shall take effect on January 1, 1969, except the allocation under Section 3, which shall take effect upon approval of this Act.
Declaration of Policy and Creation of Special Education Fund (Section 1):
- Declares the policy of the government to contribute to the financial support of education goals.
- Creates a Special Education Fund derived from additional tax on real property and a portion of taxes on Virginia-type cigarettes and duties on imported leaf tobacco.
- The Fund shall be expended exclusively for the following activities of the Department of Education:
a. Organization and operation of extension classes to accommodate all children of school age desiring to enter Grade I, including creation of teaching positions. Priority shall be given to barrios. (Section 1a)
b. Construction, repair, and acquisition of sites for elementary school buildings, workshops, and related facilities for practical arts, home economics, and vocational courses. Priority shall be given based on actual needs and total requirements of the country. (Section 1b)
c. Payment and adjustment of salaries of public school teachers under Republic Act No. 5168 and benefits under Republic Act No. 4670. (Section 1c)
d. Preparation, printing, and/or purchase of textbooks, teachers' guides, forms, and pamphlets approved for use in public schools. (Section 1d)
e. Purchase, improvement, repair, and refurbishing of machinery, laboratory, technical equipment, and apparatus, including spare parts needed by the Bureau of Vocational Education and secondary schools offering vocational courses. (Section 1e)
f. Establishment of a printing plant for the printing needs of the Department of Education and improvement of regional printing plants in vocational schools. (Section 1f)
g. Purchase of teaching materials such as workbooks, atlases, flip charts, science and mathematics teaching aids, and simple laboratory devices for elementary and secondary classes. (Section 1g)
h. Implementation of the existing program for citizenship development in barrio high schools, folk schools, and adult education classes. (Section 1h)
i. Undertaking of education research, including that of the Board of National Education. (Section 1i)
j. Granting of government scholarships to poor but deserving students under Republic Act No. 4090. (Section 1j)
k. Promotion of physical education, such as athletic meets. (Section 1k)
Financing Sources of the Fund (Section 2):
- The Fund shall consist of the proceeds of:
a. A portion of the taxes on Virginia-type cigarettes and duties on imported leaf tobacco.
b. An additional tax on real property.
Allocation of Taxes on Virginia-type Cigarettes and Duties on Imported Leaf Tobacco (Section 3):
- The entire collection from specific taxes on locally-manufactured Virginia-type cigarettes and tariff duties on imported leaf tobacco shall be allocated as follows:
a. The share of local governments in the regular internal revenue allotment shall be computed and set aside for distribution to local governments.
b. 1% shall be retained by the Bureau of Internal Revenue for the purchase of equipment and improvement of collection methods.
c. The balance shall be distributed as follows: 10% to the national share of the Fund, 40% to the Philippine Virginia Tobacco Administration Tobacco Fund, and 50% to the general fund of the National Government.
Imposition of Additional Tax on Real Property and Disposition of Proceeds (Section 4):
- An annual additional tax of 1% on the assessed value of real property is imposed, in addition to the regular real property tax.
- The additional tax shall not be collected if the total assessed valuation of real property assessable to any one person is not in excess of ₱3,000.
- The total real property tax shall not exceed a maximum of 3%.
- The additional tax shall be due and payable in four equal installments: March 31, June 30, September 30, and December 31.
- The assessment made under Commonwealth Act No. 470 and other applicable laws shall constitute the basis for assessment and collection of the additional levy.
- The additional tax shall be collected by the municipal or city treasurer where the real property is situated and distributed as follows:
a. For municipalities: 50% shall be retained by the municipality, 20% shall be remitted to the provincial treasurer, and 30% shall be remitted to the Treasurer of the Philippines for stabilizing the Special Education Fund.
b. For cities: 60% shall be retained by the city, and 40% shall be remitted to the Treasurer of the Philippines for stabilizing the Special Education Fund.
Creation of Local School Boards (Section 5):
- In every province, city, or municipality, a Provincial School Board, City School Board, or Municipal School Board shall be established, respectively.
- The composition of the school boards is specified for each level (provincial, city, municipal).
- The performance of duties and responsibilities of the appointed or nominated members shall not be delegated.
Functions of Provincial, City, or Municipal School Boards (Section 6):
- Determine the annual budgetary needs for the operation and maintenance of public schools and the cost of meeting such needs, in accordance with criteria set by the Bureau of Public Schools or Bureau of Vocational Education.
- Apply for a share in the fund established under Section 4A(3) and 4B(2) through the Division Superintendent of Schools or Superintendent of Vocational Education.
- Authorize the provincial, city, or municipal treasurer to disburse funds from the respective share in the Special Education Fund pursuant to the prepared budget.
- Discharge other functions and duties assigned by the Bureau of Public Schools or Bureau of Vocational Education.
- The chairman and members shall perform their duties without compensation or remuneration, except for necessary traveling expenses for non-government officials.
- The boards shall meet at least once a month, and three members shall form a quorum. The affirmative vote of three members is necessary to approve the budget.
Expenditure of the Special Education Fund (Section 7):
- Each school board shall prepare the budget of receipts and expenditures for the ensuing fiscal year by August 15 each year.
- Budgets approved by the school boards shall be final and executory unless an appeal is taken within 15 days to the Director of Public Schools or Director of the Bureau of Vocational Education for final decision within 30 days.
- Any school need that cannot be covered by the budget shall be forwarded to the Department of Education for information.
- Expenditure of the share of the National Government shall be in pursuance of appropriations made by law and included in the budgets of the Bureau of Public Schools and Bureau of Vocational Education.
- In allocating the Fund corresponding to the National Government, the Department of Education shall follow a schedule of priorities starting with the municipalities, cities, or provinces belonging to the lowest classification made by the Department of Finance.
- Starting with the fourth year, municipalities, cities, and provinces enjoying priority shall continue to be entitled thereto if their total collection from real estate taxes during the preceding three fiscal years has increased by an average of at least 15%.
- The collections accruing to the Fund during the fiscal year ending June 30, 1969, are appropriated to fund the appropriations from the general and bond funds for the Bureau of Public Schools and Bureau of Vocational Education that cannot be programmed for lack of funds, with specific amounts appropriated for various purposes, including adjustment and payment of teachers' salaries, repair of school buildings, aid to barrio high schools, government scholarships, establishment of a printing plant, interscholastic meet expenses, and education research.
Administrative Provisions (Section 8):
- All administrative, special, and general provisions of law, including those pertaining to the assessment, remission, collection, and refund of real property taxes not inconsistent with this Act, are made applicable.
Turnover of Collections and Release of the Fund (Section 9):
- Municipal or city treasurers shall retain the shares of the municipal or city government and turn over the portions of their collections appertaining to the provincial government and/or the National Government to the respective treasurers monthly within 15 days of every succeeding month.
- No portion of the collections may be transferred or diverted to the general or any other fund of the National Government, provinces, cities, or municipalities, or used or expended for any purpose other than those specified in this Act.
- It shall be the ministerial duty of the Budget Commissioner, Treasurer of the Philippines, all municipal, provincial, and city treasurers, and their officials and employees to effect releases from the Fund within 15 days from receipt of the order and/or authorization by the Secretary of Education (for the share of the National Government) or by the municipal, city, or provincial school boards (for their respective shares).
Rules and Regulations (Section 10):
- The Secretary of Education and the Secretary of Finance, upon the recommendation of the Director of Public Schools, Director of Vocational Education, and Treasurer of the Philippines, shall promulgate all rules and regulations for the effective enforcement of the provisions of this Act.
- The rules and regulations shall be published within 15 days from promulgation in three newspapers of general circulation in the Philippines and shall take effect 15 days after their publication.
Penal Provision (Section 11):
- Any person who fails or refuses to turn over collections of the taxes and penalties within the period fixed in Section 9, or who delays, obstructs, or prevents the same, or who fails or refuses to effect releases from the Fund within the period fixed in Section 9, or who delays, obstructs or prevents the same, or who orders, causes, or effects the transfer or diversion of the collections of this Fund or any portion thereof, shall be punished with a fine not exceeding ₱10,000 or imprisonment not exceeding 6 years, or both, at the discretion of the court.
- If the offender is a government official or employee, he shall, in addition, be dismissed from the service with prejudice to reinstatement and with disqualification for election or appointment to any public office.
Separability Clause (Section 12):
- The provisions of this Act are declared separable, and if any part, section, or provision is held invalid or unconstitutional, no other part, section, or provision shall be affected.
Repealing Clause (Section 13):
- All Acts, parts of Acts, executive orders, ordinances, rules, and regulations inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.
Effectivity (Section 14):
- This Act shall take effect on January 1, 1969, except the allocation under Section 3, which shall take effect upon approval of this Act.