Section 12Sec./Art. 12

Franchise Tax. – In consideration of the franchise, the grantee shall pay into the National Treasury a franchise tax equal to twenty-five percentum (25%) of its gross earnings from the horse races authorized to be held under this franchise which is equivalent to the eight and one-half percentum (8 %) of the total wager fund or gross receipt on the sale of betting tickets during the racing day as mentioned in Section 8 hereof, allotted as follows:

(a) Three percentum (3%) for the national government;

(b) Five percentum (5%) for the province or city/municipality where the racetrack is located;

(c) Five percentum (5%) for the benefit of public health workers of the Department of Health (DOH);

(d) Five percentum (5%) for the Cardiovascular Program of the DOH;

(e) Five percentum (5%) for the Philippine Anti-Tuberculosis Society; and

(f) Two percentum (2%) for the "Water of Life" Project of the Department of Health.

The said taxes shall be paid monthly and shall be in lieu of any and all taxes of any kind, nature and description levied except the income tax, established or collected by any authority whether barangay, municipal, city, provincial or national, on its properties, whether real or personal, from which taxes the grantee is hereby expressly exempted.