OFFICE OF THE CHAIRMAN OF THE
EXECUTIVE COMMISSION
MALACAÑAN PALACE

BY THE CHAIRMAN OF THE EXECUTIVE COMMISSION

EXECUTIVE ORDER NO. 97

PROVIDING FOR A TEMPORARY SYSTEM OF APPORTIONMENT OF INTERNAL REVENUE TAXES TO PROVINCES, CITIES AND MUNICIPALITIES.

Pursuant to the authority conferred upon me as Head of the Central Administrative Organization by Order No. 1 in connection with Order No. 3 of the Commander-in-Chief of the Imperial Japanese Forces in the Philippines, and upon the recommendation of the Executive Commission, there is hereby established, as an emergency measure, a new system of internal revenue apportionment under the following rules:

1. The proceeds of residence taxes, except those due in 1940 and 1941, shall accrue to provinces and municipalities and to the Central Administrative Organization in the following proportion: twenty-five per centum to the municipality wherein the tax is collected, twenty per centum to the province to which the municipality belongs, and fifty-five per centum to the Central Administrative Organization. Of the collections in chartered cities, forty-five per centum shall accrue to the city wherein the tax is collected and fifty-five per centum to the Central Administrative Organization.

2. The proceeds of residence taxes due in 1940 and 1941 shall accrue to provinces and municipalities and to the Central Administrative Organization in the following proportion: forty per centum to the municipality wherein the tax is collected, thirty per centum to the province to which the municipality belongs, and thirty per centum to the Central Administrative Organization. Of the collections in chartered cities, seventy per centum shall accrue to the city wherein the tax is collected and thirty per centum to the Central Administrative Organization.

3. Internal revenue collected, other than from residence taxes, shall accrue to the Central Administrative Organization, with the exception of the following amounts which shall be set aside as the share accruing to the province or city concerned: one per centum of the collections in the City of Manila; five per centum, in the Cities of Baguio, Cebu and Iloilo; ten per centum, in the Cities of Davao and Bacolod; fifteen per centum, in the Provinces of Camarines Norte and Masbate; twenty-five per centum, in the Provinces of Agusan, Occidental and Pampanga and in the City of San Pablo; thirty-five per centum, in the Provinces of Camarines Sur, Laguna, Tarlac and Zamboanga; forty-five per centum, in the Provinces of Bulacan, Cagayan and Tayabas; fifty-five per centum, in the Provinces of Nueva Ecija and Oriental Negros; sixty-five per centum, in the Provinces of Bataan, Cotabato, Davao and Pangasinan; eighty per centum, in the Provinces of Batangas and Lanao; eighty-five per centum, in the Provinces of Albay, lsabela, Nueva Vizcaya, Surigao and Zambales; and one hundred per centum, in the Provinces of Abra, Antique, Bohol, Bukidnon, Capiz, Cavite, Cebu, Ilocos Norte, Ilocos Sur, Iloilo, La Union, Leyte, Mindoro, Misamis Occidental, Misamis Oriental, Mountain Province, Palawan, Rizal, Samar, Sorsogon and Sulu, and in the City of Cavite.

4. The amounts accruing to the Central Administrative Organization shall be remitted to the Bureau of the Treasury and the amounts accruing to provinces, cities and municipalities shall be retained by them and made available for expenditure for their own purposes.

5. Where a province, city or municipality, prior to the promulgation of this Order, had expended for its own purposes any part of the internal revenue collections accruing to the Central Administrative Organization, such province, city or municipality may be allowed by the Chairman of the Executive Commission, upon the recommendation of the Commissioner of the Interior and the Commissioner of Finance, to reimburse the same in equal monthly installments for a period not exceeding one year beginning on the date of the issuance of this Order. The installment for a certain month shall be paid to the Central Administrative Organization within the first five days of that month and in case the province, city or municipality concerned fails to make such payment, the provincial treasurer, city treasurer, or municipal treasurer, as the case may he, is authorized and directed to withhold from the revenue of the said province, city or municipality that may come into his possession an amount sufficient to cover the payment and shall remit the said sum to the Bureau of the Treasury.

6. The accounting and reporting of internal revenue collections and the remittances of that portion thereof accruing to the Central Administrative Organization, as well as the remittances under the next preceding paragraph, shall be made in accordance with the regulations that shall be issued by the Auditor General and Director of the Budget and approved by the Chairman of the Executive Commission. The Auditor General and Director of the •Budget shall also issue such other regulations as may be necessary to carry out the provisions of this Order.

7. This Order shall take effect as of January 23, 1942: Provided, That the Chairman of the Execute Commission may, in his discretion and in specific cases, determine the effective date of the application of the provisions of this Order to a province, city or municipality where the local government under the Philippine Executive Commission has been organized after January 23, 1942.

Done in the City of Manila, Philippines, this 12th day of October, 1942.

(Sgd.) JORGE B. VARGAS
Chairman of the Executive Commission

Approved by the Director General of the Japanese Military Administration on October 6, 1942.

Source: Office of the Solicitor General Library