Be it enacted by the National Assembly of the Philippines:
Section 1. In order to compensate the provinces, sub-provinces, chartered cities, municipalities, and municipal districts for the loss which they may incur in their respective revenues on account of the abolition of the cedula tax, there is hereby appropriated, out of any funds in the National treasury not otherwise appropriated, the sum of five million pesos or as much thereof as may be necessary, to be distributed by the Secretary of Finance among the provinces, subprovinces, chartered cities, municipalities, and municipal districts on the basis of the yearly average of their shares in the proceeds of the cedula tax collected during the years nineteen hundred and thirty-three, nineteen hundred and thirty-four, nineteen hundred and thirty-five, nineteen hundred and thirty-six, and nineteen hundred and thirty-seven.
Section 2. The amount to be thus distributed to a province, subprovince, chartered city, municipality, or municipal district shall accrue to the provincial, subprovincial, city or municipal funds to which the proceeds of the cedula tax accrued before its abolition.
Section 3. This Act shall take effect on January first, nineteen hundred and thirty-eight.