Under the Republic Act (RA) No. 7160 (Local Government Code (LGC) of 1991, a province or city, or a municipality within the Metropolitan Manila Area, may levy and collect am annual tax of one percent (1%) on the assessed value of real property in addition to the basic real property tax. The additional 1% tax on real property collected in the province is shared equally by the province and the municipality within its territorial jurisdiction. On the other hand, cities keep all of their collection. The proceeds from this special levy accrue to the SEF - Special Education Fund and are automatically released to the LSB (Local School Board).

The SEF - Special Education Fund provides the source of funds for the supplementary annual budgetary needs for the operation and maintenance of public schools within the province, city or municipality through an annual SEF - Special Education Fund Budget. The formulation, approval, and utilization of the SEF Budget are the responsibility of the individual LSB in each province, city or municipality.

To read more about the Joint Circular (JV) No. 1, s. 2017