(d) Where the franchise is for the operation of a public-service plant or system different from those specified above, and the same is doing business in one or more municipalities, one-fifth of the franchise tax shall accrue to the insular government, one-fifth to the province or provinces concerned, and three-fifths to the municipality or municipalities concerned; and where more than one province or municipality participates the apportionment shall be in proportion to the gross receipts from the business transacted within their respective limits.

[2657-589.] (Reference: See sec. 15, act No. 2831.)

SEC. 489. (As amended by sec. 27, act No. 2833.) Disposition of proceeds of income and inheritance taxes.-The proceeds of the tax on income and of the tax on inheritances, legacies, and other acquisitions mortis causa shall accrue to the insular government. [2601-17, 18.]

ARTICLE II.—DISPOSITION AND ALLOTMENT OF INTERNAL REVENUE IN GENERAL.

SEC. 490. Disposition of internal revenue in general.-Internal revenue collected under the laws of the Philippine Islands and not applied as hereinabove provided or otherwise specially disposed of by law shall accrue to the insular treasury, and shall be available for the general purposes of the Government, with the exception of the amounts set apart by way of allotment under the next succeeding section.

[2657-590.]

SEC. 491. Allotments of internal revenue for special purposes.— Of the internal revenue accruing to the insular treasury under the preceding section there shall be set apart 10 per centum as a provincial allotment, 10 per centum as a road and bridge allotment, and 20 per centum as a municipal allotment; but the amounts allotted to said several purposes during any year shall not be greater than the amount allotted for the same purposes during the fiscal year 1909. [2657-591.]

SEC. 492. Apportionment and use of provincial allotment. The provincial allotment shall be apportioned to the treasuries of the several respective provinces and shall there accrue to their general funds, respectively.

[2657-592.]

SEC. 493. Apportionment and use of road and bridge allotment.— The road and bridge allotment shall be apportioned among provinces wherein the road tax continues in force, as in the Mountain Province and Nueva Vizcaya and other provinces wherein the annual cedula tax is fixed or maintained at 2 pesos.

52853-21-6

Shares in the road and bridge allotment shall accrue, respectively, to the road and public works fund or road and bridge fund, as the case may be, of the governmental division participating therein.

[2657-593.]

SEC. 494. Apportionment and use of municipal allotment.-The municipal allotment shall be for the benefit of the inhabitants of the islands in the purview of their community requirements, being available for municipal or other use as hereinbelow provided.

In regularly organized provinces containing non-Christian inhabitants so much of the municipal allotment available for a particular province as pertains to its non-Christian inhabitants shall accrue to its non-Christian inhabitants' fund.

In specially organized provinces so much of the municipal allotment available for a particular province as does not pertain to municipalities or chartered cities shall accrue to the township and settlement fund of such province.

Such part of the municipal allotment as is not applied as hereinabove provided shall be distributed among the various municipalities and, except as regards the city of Baguio, shall accrue in equal proportions to their general funds and school funds. The share of the city of Baguio shall accrue wholly to its general fund.

[2657-594.]

ARTICLE III.-MISCELLANEOUS PROVISIONS.

SEC. 495. Status of cities, townships, and other local governmental divisions. For purposes of the allotment of internal revenue, a chartered city, township, or other local governmental division not constituting part of a municipality proper shall have the status of a municipality and shall be deemed to be included under the term "municipality" as used in this chapter.

The city of Manila shall receive the shares which it would receive if it were both a municipality and a regularly organized province, and for the purposes hereof shall be deemed to be both the one and the other.

[2657-595.]

SEC. 496. Apportionment to be based upon census population. Apportionments of internal revenue under the provisions of this chapter shall be based on population as shown by the official census, but until a new census is taken or population otherwise determined according to law the proportionate share of the Mountain Province. and Nueva Vizcaya and of the hill people in the Province of Samar shall be taken to be the same as in the apportionment of 1916:

Provided, however, That in determining the amount of internalrevenue funds to be allotted to the provinces comprised within the

department of Mindanao and Sulu, the auditor shall take into account the total approximate population of said provinces as certified to him by the Secretary of the Interior.

[2657-596.]

SEC. 497. Warrants for quarterly payment of allotments.-The payment of the internal-revenue allotments shall be made from the insular treasury quarterly upon warrants drawn by the collector of internal revenue.

[2657-597.]

INCOME-TAX LAW.

[Fourth Philippine Legislature, third session. H. No. 1576.]

[No. 2833.]

An act establishing the income tax, making other provisions relating to said tax, and amending certain sections of act numbered twenty-seven hundred and eleven.

Be it enacted by the Senate and House of Representatives of the Philippines in Legislature assembled and by the authority of the

same:

CHAPTER I.-ON INDIVIDUALS.

SECTION 1. (As amended by sec. 1, act No. 2926.) (a) There shall be levied, assessed, collected, and paid annually upon the entire net income received in the preceding calendar year from all sources by every individual, a citizen or resident of the Philippine Islands, a tax of 3 per centum upon such income; and a like tax shall be levied, assessed, collected, and paid annually upon the entire net income received in the preceding calendar year from all sources within the Philippine Islands by every individual, a nonresident alien, including interest on bonds, notes, or other interest-bearing obligations of residents, corporate or otherwise.

(b) In addition to the income tax imposed by subdivision (a) of this section, herein referred to as the normal tax, there shall be levied, assessed, collected, and paid upon the total net income of every individual, or, in the case of a nonresident alien, the total net income received from all sources within the Philippine Islands, an additional income tax, herein referred to as the additional tax, of onehalf of 1 per cent per annum upon the amount by which such total net income exceeds 10,000 pesos and does not exceed 20,000 pesos; 1 per cent per annum upon the amount by which such total net income exceeds 20,000 pesos and does not exceed 30,000 pesos; 11 per cent per annum upon the amount by which such total net income exceeds 30,000 pesos and does not exceed 40,000 pesos; 2 per cent per annum upon the amount by which such total net income exceeds 40,000 pesos and does not exceed 50,000 pesos; 24 per cent per annum upon the amount by which such total net income exceeds 50,000 pesos and does not exceed 60,000 pesos; 3 per cent per annum upon the amount by which such total net income exceeds 60,000 pesos and does not exceed 70,000 pesos; 31 per cent per annum upon