Section 240 of R A 7160

SEC. 240. Special Levy by Local Government Units. - A province, city or municipality may
impose a special levy on the lands comprised within its territorial jurisdiction specially
benefited by public works projects or improvements funded by the local government unit
concerned: Provided, however, That the special levy shall not exceed sixty percent (60%) of
the actual cost of such projects and improvements, including the costs of acquiring land and
such other real property in connection therewith: Provided, further, That the special levy
shall not apply to lands exempt from basic real property tax and the remainder of the land
portions of which have been donated to the local government unit concerned for the
construction of such projects or improvements.