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Section 1. Section forty-six of Batas Pambansa Bilang 232 is amended to read as follows:

"Sec. 46. Relating to School Property. – Real property, such as lands, buildings and other improvements thereon used actually, directly and exclusively for educational purposes, shall be subject to the real property tax based on an assessment of fifteen percent of the market value of such property: Provided, That all the proceeds from the payment thereof shall accrue to a special private education fund which shall be managed and disbursed by a local private school board which shall be constituted in each municipality or chartered city with private educational institutions with the mayor or his representative as chairman and not more than two representatives of the institutional taxpayers, and, likewise, not more than two residents of the municipality or chartered city who are alumni of any of the institutional taxpayers as members: Provided, finally, That in municipalities or chartered cities wherein the number of private institutions with individual enrollment of pupils and students over five thousand exceeds fifteen, the members of the private school board shall be increased to no more than fourteen members determined proportionately by the Minister of Education, Culture and Sports. The private school board shall adopt its own rules which shall enable it to finance the annual programs and projects of each institutional taxpayers for the following purposes: student-pupil scholarships; improvement of instructional, including laboratory facilities, and/or equipment; library books and periodicals acquisition; and extension service in the community, in that order of priority."

Sec. 2. This Act shall take effect upon approval.

Approved: June 3, 1983

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