RPT for Common Areas Philippines

Question:
I live in a condominium and our condo corporation is requiring us to pay Real Property Tax (RPT) on common areas separately from our monthly dues. Is this legal under Philippine law?

Answer:

What is Real Property Tax (RPT)?

Real Property Tax is a type of tax that applies to real estate properties, which includes land, buildings, and improvements. In the context of condominiums, this applies not only to individual units but also to common areas such as the lobby, swimming pool, and gym.

Who is Responsible for Paying RPT for Common Areas?

According to the Condominium Act (Republic Act No. 4726), the management of the condominium corporation is generally responsible for the administration of the common areas. This includes the responsibility to pay the RPT due on these areas. However, the cost is typically shared among the unit owners, often as part of the monthly dues or as a separate assessment.

Is it Legal to Charge RPT Separately?

The legality of charging RPT for common areas separately from monthly dues generally depends on the provisions in the condominium's Master Deed and By-laws. These documents may state how RPT for common areas should be collected. If the Master Deed and By-laws are silent on this issue, but the condo corporation's Board of Directors has made a well-documented decision to charge RPT separately, then it could be considered legal as long as it follows due process and is in accordance with the Condominium Act.

What Steps Can You Take?

1. Review Documents: Check your condominium's Master Deed, By-laws, and any resolutions from Board Meetings that discuss the issue of RPT on common areas.

2. Consult the Board: If the documents are unclear, consult with the Board of Directors for clarification. The board should be transparent about its reasons for the separate RPT charge.

3. Legal Advice: If you still have concerns about the legality of this arrangement, consult a lawyer who specializes in property law for advice tailored to your situation.

Conclusion:

While it's generally legal for a condominium corporation to collect RPT on common areas, whether it can be charged separately from monthly dues often depends on the specific terms outlined in the condominium's governing documents. If you're unsure or uncomfortable with how RPT is being handled, it's advisable to consult with legal experts familiar with Philippine property law.