A survey of the educational system of the Philippine islands by the Board of educational survey, created under acts 3162 and 3196 of the Philippine Legislature.

FINANCE 583
to the school fund of the municipality and the remaining one-fourth of
one per cent to its general fund.
In short, the schools automatically receive half of the proceeds of
the property tax as levied by municipalities, and two-sevenths of the
total proceeds of this tax. But, except as they obtain allotments from
the remaining two-eighths going into the general fund of the province or
the remaining two-eighths going to the general fund of the municipality,
they cannot secure more than this two-sevenths.
The provincial revenues from real property taxes have gradually increased from P1,193,564 in 1910 to P4,200,558 in 1923. Each year,
except 1911 and 1914, the yield has been larger than for the preceding
year.
The real-property tax occupies an important place in municipal and
provincial finance. In 1923 the income from this tax alone was 42
per cent of the total revenues of the provinces from taxation; in 1921,
40 per cent of the total revenues; in 1918, 30 per cent; in 1913, 18
per cent; and in 1910, 19 per cent. In the chartered cities of Manila
and Baguio, 77 per cent of the total revenues from taxation in 1923
came from the real-property tax; in 1913, 71, and in 1913, 63 per
cent.
In the municipalities the real-property tax provided 51 per cent of
the total revenues from taxation in 1923; in 1921, 46.2 per cent; in
1918, 40 per cent; and in, 1913, 30.3 per cent.
The tax is an ad valorem tax. The law does not state the basis
of property valuation, nor is there established a uniform method or
practice of valuation. It is the intention of the law that properties for
purposes of taxation be assessed at full value; but it is admitted that
properties in the Philippine Islands are assessed at only 50 to 60 per
cent of their true value for taxation purposes. If the sale price of
properties corresponded to their assessed value, the revenues of the
provinces and municipalities would be increased to the extent of
P8,500,000.
To increase the revenues of the provinces and municipalities from
this tax, it is not theoretically necessary to raise the rate from seveneighths of one per cent to one per cent in regular provinces. The Legislature seems unlikely to increase the rate by one-eighth of one per
cent, unless it is done upon petition of the provinces. Possibly, provided
the additional revenue is set aside as provincial school fund, the rate
might be increased by one-eighth of one per cent. There have been
resolutions and bills presented in the Philippine Legislature along this