In the Philippines, owning a condominium unit entails not just the initial purchase price and monthly association dues, but also the mandatory payment of Real Property Tax (RPT), colloquially known as amelyar. Governed primarily by Republic Act No. 7160, also known as the Local Government Code of 1991, RPT is an ad valorem tax on real property such as land, buildings, machinery, and other improvements.

For condominium owners, understanding the mechanics of RPT is crucial to avoiding the severe consequences of delinquency, which can range from accumulating high-interest penalties to the eventual loss of the property through a public auction.

The Scope of Taxation for Condominiums

A common misconception is that a condo owner only pays tax on the space within their unit. Under the Condominium Act (R.A. 4726), the taxation structure is twofold:

The Individual Unit: The owner is directly responsible for the RPT on their specific unit.
Common Areas and Land: The RPT on the land where the building stands and the common areas (lobbies, pools, hallways) is typically paid by the Condominium Corporation. These costs are then passed on to individual owners through association dues or special assessments.

Failure to settle the tax on the individual unit results in a personal delinquency, whereas the corporation’s failure to pay for common areas can lead to legal complications for the entire development.

Payment Deadlines and Early Payment Benefits

RPT accrues on the first day of January each year. Taxpayers generally have two options for settlement:

Annual Payment: Paying the full amount on or before January 31.
Installment Basis: Paying in four equal quarterly installments:

1st Quarter: On or before March 31
2nd Quarter: On or before June 30
3rd Quarter: On or before September 30
4th Quarter: On or before December 31

Discounts: Most Local Government Units (LGUs) offer a discount—often ranging from 10% to 20%—if the RPT is paid in full before the deadline or within the preceding year (advance payment).

Penalties for Delinquency

When a condo owner fails to pay the RPT within the prescribed periods, the tax becomes delinquent. The Local Government Code imposes a mandatory penalty on unpaid taxes:

Interest Rate: A surcharge of two percent (2%) per month on the unpaid amount.
Cap on Interest: The interest continues to accrue until the delinquent tax is paid in full, but it is capped at a maximum of thirty-six (36) months, or a total of 72%.

Once the maximum penalty is reached, the debt does not stop growing; the 72% interest remains a permanent lien on the property until settled.

Administrative Remedies of the LGU

The law provides the LGU with powerful tools to enforce collection. If the delinquency persists, the Treasurer’s Office may pursue the following:

1. Warrant of Levy

The LGU issues a Warrant of Levy against the real property. This is a formal attachment of the property to satisfy the tax debt. A notice of levy is filed with the Register of Deeds, which is annotated on the unit’s Condominium Certificate of Title (CCT). This effectively prevents the owner from selling, mortgaging, or transferring the property.

2. Advertisement and Public Auction

If the tax remains unpaid despite the levy, the LGU will advertise the property for sale at a public auction. The proceeds of the sale are used to cover the delinquent tax, the accumulated penalties, and the costs of the sale.

3. Civil Action

The LGU also has the option to file a civil case in the proper court for the collection of the delinquent tax.

The Right of Redemption

Losing a condo unit to a tax sale is not instantaneous. The law provides a "grace period" for the original owner known as the Right of Redemption:

Duration: The owner has one (1) year from the date of the registration of the sale with the Register of Deeds to redeem the property.
Redemption Price: To get the property back, the owner must pay the amount of the delinquent tax, the penalties, the costs of the sale, plus an additional interest of not more than two percent (2%) per month on the purchase price from the date of sale to the date of redemption.

If the owner fails to redeem the property within this one-year period, the purchaser at the public auction becomes the absolute owner, and a new CCT will be issued in their name.

Contesting an Assessment: Payment Under Protest

If a condo owner believes the tax assessment is erroneous or illegal (e.g., the valuation is too high), they cannot simply refuse to pay. Under Section 252 of the Local Government Code, the owner must:

Pay the Tax First: The tax must be paid, and the receipt must be marked "paid under protest."
File a Protest: A formal written protest must be filed with the Provincial, City, or Municipal Treasurer within thirty (30) days from the date of payment.
Appellate Process: If the Treasurer denies the protest, the owner may appeal to the Local Board of Assessment Appeals (LBAA) and, subsequently, to the Central Board of Assessment Appeals (CBAA).

Failure to "pay under protest" renders any subsequent legal challenge to the assessment's validity null and void.