Liability When a Co-Owner Fails to Pay Real Property Tax in the Philippines A practitioner-oriented explainer (updated to the Local Government Code as amended up to June 2025)

1. Why this matters

Real Property Tax (RPT) is the backbone of every Philippine local government unit (LGU). The tax attaches to land and improvements in rem—it follows the property, not the person. When several individuals own the same parcel (a co-ownership under Arts. 484–501, Civil Code), a single delinquent co-owner can expose the entire asset to levy and sale. Understanding everyone’s exposure—and the remedies when one owner refuses to shoulder the tax—is therefore essential estate, commercial-leasing, and family-law advice.

2. The statutory framework

Source	Key provisions on RPT & co-owners
Local Government Code (LGC), R.A. 7160	Title II, Book II (Secs. 197-283) governs assessment, collection, penalties, auction, and redemption. Critical §§ include 234 (exemptions), 247 (persons primarily liable), 255-263 (delinquency procedures), and 258-260 (redemption after sale).
Civil Code	Art. 488: every co-owner must contribute to the “taxes and charges” on the common thing; Art. 489 gives a paying co-owner the right of reimbursement plus interest.
2009 Manual on RPT Assessment and Collection (BLGF)	Administrative guidance: treasurers may bill “any owner or administrator of the entire property” solidarily.
Rules of Court	Rule 39, Secs. 12-14 (redemption after execution sale) applies by analogy; Rule 69 covers actions for partition when tax burdens become oppressive.
Special laws	R.A. 4726 (Condominium Act) & R.A. 9904 (Magna Carta for Homeowners) re-allocate the tax burden pro-rata in vertical projects.

3. How liability is allocated

3.1 Solidary exposure to the LGU

Section 247, LGC treats “the owner or administrator, or anyone who by law or contract has actual control of the real property” as personally liable. In practice, treasurers mail only one notice, addressed to “Spouses A & B, et al.” Because the tax is a lien on the land (Sec. 257), the LGU need not (and usually does not) sue every co-owner individually.
Effect: Co-owners are solidarily liable vis-à-vis the State. The treasurer may seize or auction the whole parcel even if only one-tenth undivided share is in arrears.

3.2 Internal allocation among co-owners

Civil Code Art. 488: Each co-owner must contribute pro-rata (by ideal share) to “taxes, charges and expenses necessary for the preservation” of the property.
Art. 489: A co-owner who advances more than his share acquires a legal right to reimbursement plus legal interest, and may even record a lien by annotating the owner’s duplicate TCT.
If the non-paying co-owner is insolvent, the deficit is borne by the others in proportion to their shares (Art. 488, 2nd par.). They may later sue the defaulter for the amount unduly shouldered.

4. Consequences of non-payment

Timeline	Administrative steps	Consequences to all co-owners
Jan 1–Mar 31 (regular period)	Basic tax due (Sec. 246).	Discount available for early full payment.
Apr 1 onward	2 % interest per month on the unpaid basic + additional taxes; capped at 36 % (Sec. 255).	Accrues against the entire parcel.
On or about Jan 31 following the taxable year	Treasurer posts Notice of Delinquency (Sec. 254).	Lien formally advertised; credit rating impact.
At least 30 days after notice	Levy by warrant (Sec. 258).	Annotated on TCT; banks will not accept property as collateral.
One year after levy	Public auction; treasurer issues Certificate of Sale to highest bidder (Sec. 260).	Whole property is sold, not merely the delinquent share.
Within one year from sale	Right of redemption (Sec. 261). Any co-owner, mortgagee or heir may redeem by paying: sale price + interest + expenses.	Failing redemption, buyer obtains final deed, can consolidate title (Sec. 263).

5. What a diligent co-owner can do

Pay first, recover later. Under Art. 489, advance the full RPT to stop penalties, then demand reimbursement.
Document the payment. Keep the official receipt (OR) and file an affidavit of advances; annotate the lien on the TCT at the Registry of Deeds for priority over subsequent transfers.
Send a demand letter citing Art. 488 and attaching the OR; set a 30-day deadline.
**File an action for sum of money or, if relations are irreparably strained, an action for partition under Rule 69 so each owner becomes solely responsible for his segregated portion.
Consider an accion subrogatoria. If the delinquent co-owner expects rental income or a loan release, you may garnish those credits until your advances are recouped.

6. Special settings

6.1 Condominium projects

Because title is split between:

Individual units (TCTs in owners’ names); and
Common areas (TCT in the name of the condominium corporation),

the Board usually pays RPT on common areas out of monthly assessments (Sec. 9(j), R.A. 4726). A unit owner’s delinquency affects only his unit’s TCT, not the common areas.

6.2 Estate or inherited property

Before the estate is settled, co-heirs under pro-indiviso co-ownership are jointly liable. A judicial administrator who fails to pay may be liable for damages (Rules of Court, Rule 75) and can be replaced on motion.

6.3 Leasing scenarios

A long-term lessee who contractually assumes RPT becomes “one who has actual control” under Sec. 247 and can be billed directly. BUT the LGU may still levy upon the lessor’s reversionary interest if the lessee defaults.

7. Jurisprudence to cite in pleadings

Case (GR No., date)	Take-away
Heirs of Malate v. Gamboa, G.R. No. 173610, June 22 2015	A co-owner who bought the common property at a tax sale did not acquire exclusive ownership; he merely became trustee for the others (doctrine of fiduciary acquisition).
Spouses Dimagiba v. Benitez, G.R. No. 206407, Apr 20 2015	LGU may validly auction the entire property without impleading every co-owner if notices were sent to the declared administrator; remedy is redemption, not annulment.
Wesleyan Univ. v. Cabanatuan City, G.R. No. 181806, June 27 2012	RPT is a superior lien—even over mortgages—unless the mortgagee redeems within the statutory period.
Acabal v. Acabal, G.R. No. 148376, Nov 26 2002	A co-owner who shoulders necessary expenses (including taxes) has a legal right to reimbursement with interest and may refuse partition until reimbursed.
Phil. Long Distance Tel. Co. v. City of Davao, G.R. No. 143867, Aug 22 2001	Reinforces that Sec. 258 levy procedure is administrative and need not pass through court.

8. Risk-management checklist for practitioners

Calendar due dates (quarterly or annual) and enrol property in LGU’s e-billing, if available.
Secure updated Tax Declaration & Statement of Account yearly to monitor surcharges.
Maintain a co-ownership agreement allocating RPT, with default interest matching Art. 2209 Civil Code (6 % p.a. for liquidated obligations).
Add a compulsory-sale trigger: if any co-owner is delinquent > 90 days, others may demand partition or sale of his share.
Keep proof of service of all demand letters; courts often require them before awarding attorney’s fees in reimbursement suits.
Insist on escrow (for buyers of undivided shares) sufficient to cover next 3-5 years of RPT until partition is complete.

9. Frequently-asked practical questions

Q	A
Can I pay only my ½ share at the treasurer’s office?	No. The system computes tax per Tax Declaration, not per ideal share. The treasurer will accept only full payment, though you can later claim reimbursement from your co-owner.
If the property is auctioned, do we lose it forever after the one-year redemption period?	Yes. After one year without redemption, the purchaser gets a final deed, may consolidate title, and lawfully eject occupants.
Will my personal credit score suffer?	While the Philippines lacks a unified credit bureau, large banks pull LGU delinquency data on collateral properties, so future loan applications secured by the same parcel will likely be refused.
Can we ask the BIR to intervene?	No. RPT is purely LGU jurisdiction. The BIR collects only national taxes (e.g., estate tax, documentary stamp).

10. Key take-aways

RPT liability among co-owners is solidary externally, pro-rata internally.
The LGU may seize and sell the whole property for the fault of one.
A vigilant co-owner should pay, protect the title, then sue for reimbursement—and, if necessary, compel partition.

Author’s note (June 12 2025): This article reflects statutes and Supreme Court doctrine up to A.M. No. 22-06-02-SC and the 2024 amendments to the BLGF manual. No pending bill in Congress, as of this writing, proposes to alter the solidary-liability regime.

Prepared for clients, law students, and fellow counsel who need a one-stop primer on co-ownership realty-tax pitfalls in the Philippines.