I. Why this topic is tricky

A “private road used by the public” sits in a legal gray zone: the public may pass through it freely, the local government may even maintain it, yet ownership might remain private and the title may still be in a private name. Under Philippine real property taxation, taxability generally follows (1) ownership and (2) the statutory exemptions, and not merely the fact that the public uses the property.

As a result, public use alone does not automatically equal real property tax (RPT) exemption. Exemption usually requires that the road is government-owned (or has become part of the public dominion through dedication/acceptance), or that it falls within a specific statutory exemption measured by actual, direct, and exclusive use.

II. Legal framework (high level)

A. Constitutional and statutory setting

Philippine Constitution – Local autonomy and local taxing powers exist, but tax exemptions must rest on law; exemptions are generally construed strictly against the taxpayer.
Local Government Code of 1991 (Republic Act No. 7160) – The main statute on RPT:
- RPT is imposed on real property (land, buildings, improvements, machinery) within an LGU.
- Assessment and collection are administered by the local assessor and treasurer.
- Exemptions are enumerated primarily in Section 234, subject to important qualifiers (notably beneficial use and use-based tests).

B. Civil Code concepts that matter

Whether a road is “private” or “public” is not just a label—it is a legal status:

Property of public dominion (e.g., roads intended for public use) is generally owned by the State/LGU and is outside ordinary commerce.
Private property remains within commerce and is generally taxable unless exempted.

A road’s status can change through dedication and acceptance (more on this below).

III. What exactly is being taxed?

A. Roads as “real property”

A road is not always a separate taxable “thing” with its own category; it is commonly:

Part of the land (a strip used as a roadway within a titled parcel), or
A separate titled parcel (e.g., “Road Lot”), or
A portion of a larger property that is assessed as part of the whole.

If the road remains privately owned, the assessor typically includes it in the assessed value (either as a distinct tax declaration or as part of the parent property), unless an exemption applies.

B. The default rule: taxable unless clearly exempt

Under Philippine tax principles and local taxation practice, exemptions are not presumed. If a private person/corporation owns the road lot, the starting presumption is taxability.

IV. The key statutory exemptions and how they relate to roads

A. Section 234, Local Government Code (core exemptions)

While the wording should be checked against the latest annotated versions used by practitioners, the commonly invoked categories include:

Real property owned by the Republic of the Philippines or any of its political subdivisions (e.g., provinces, cities, municipalities, barangays)
- Important qualifier (beneficial use rule): even if government-owned, it may become taxable if the beneficial use is granted to a taxable private person/entity.
Charitable institutions, churches/parsonages/convents/mosques and related appurtenances, non-profit cemeteries, and
All lands, buildings, and improvements actually, directly, and exclusively used for religious, charitable, or educational purposes
- This is the famous ADAE test: actual, direct, and exclusive use—not intended use, not incidental use, not partial use if portions are devoted to commercial activity.

B. What this means for “private roads used by the public”

A privately owned road can realistically obtain exemption in only a few pathways:

The road is (or becomes) government-owned (and not subject to taxable beneficial use).
The road is owned by an exempt entity (e.g., a charitable or educational institution) and the road is actually, directly, and exclusively used to accomplish the exempt purpose (with careful handling of mixed/commercial use).
The road has been dedicated to public use and accepted by the government such that it is properly treated as public dominion.

If none of these applies, public use alone typically does not remove the property from the RPT base.

V. Pathway 1: Exemption because the road is government-owned (or becomes government-owned)

A. The cleanest scenario: transfer of ownership to the LGU/Republic

If the road lot is donated/conveyed to the city/municipality/province or the Republic and the transfer is properly documented, it is typically assessable as exempt under the government-ownership exemption, subject to the beneficial use qualifier.

Common documents:

Deed of Donation / Deed of Conveyance
Sangguniang resolution or ordinance accepting donation/turnover (where required/used in practice)
Transfer Certificate of Title (TCT) in the name of the LGU/Republic (or at least proof of pending transfer + acceptance, depending on assessor practice)
Updated tax declaration cancelling the private TD and issuing an exempt TD

B. Dedication + acceptance (even before perfect paperwork)

In some real-world cases, roads are treated as public due to:

Dedication by the owner (express or implied), and
Acceptance by the proper public authority (express or implied)

Express dedication/acceptance is easiest (written instruments, approvals, turn-over). Implied dedication/acceptance is fact-heavy and more contested (long public use, owner’s acquiescence, government acts of control/maintenance, inclusion in road inventories, etc.). For RPT exemption purposes, assessors commonly look for clear indicia of public ownership/control, and disputes often end up in administrative appeals.

C. Subdivision roads are a major special case

For subdivisions, the governing housing and land development rules (commonly implemented through regulatory approvals) typically require roads, open spaces, and common areas to be set aside and, in many situations, eventually turned over to the LGU or otherwise placed under a regime consistent with public use.

Practical point: Many “subdivision roads” remain titled to the developer/homeowners’ association (HOA) for years while being used by the public. In that in-between period, assessors often continue taxing unless there is a legally recognized turnover/acceptance or a recognized basis for exemption.

Best evidence for exemption in subdivision-road scenarios:

Approved subdivision plan showing road lots as such
License to sell / development permits and approval conditions
Deed of Donation/Conveyance of road lots to LGU
LGU acceptance documents and/or proof the road is in the LGU road inventory and under LGU control
Title transfer or authoritative proof that the road lot is for public dominion

VI. Pathway 2: Exemption because the owner is an exempt entity and the road meets the “actual, direct, and exclusive use” test

A. When a private road can be exempt under “use-based” exemptions

If the road is owned by:

a religious entity,
a charitable institution,
an educational institution, and the road is actually, directly, and exclusively used to carry out the exempt purpose, it may qualify.

Examples (illustrative):

A road inside a charitable hospital campus used for access to hospital facilities, with no commercial leasing of the road/right-of-way and no tolling or commercial exploitation.
A school campus internal roadway used for ingress/egress of students and school operations, not as a commercial access road for unrelated enterprises.

B. The big risk: mixed use or commercial exploitation

Philippine jurisprudence on “actually, directly, and exclusively used” has consistently treated commercial leasing or profit-oriented use as a spoiler—at least for the portions so used.

For roads, mixed-use red flags include:

The road primarily serves commercial tenants (malls, shops, logistics facilities) whose presence is revenue-generating.
The road is used as part of a toll/access-fee structure.
The road’s “public use” is essentially a commercial access easement supporting a private enterprise.

In mixed-use settings, assessors (and appeals bodies) often take a portion-based approach where feasible: exempt only the portions meeting the strict test, tax the rest.

VII. Pathway 3: “Private road open to public” as a basis by itself (usually not enough)

A. Mere tolerance of public passage does not equal exemption

A property owner allowing the public to pass does not automatically:

transfer ownership,
convert the land into public dominion, or
create a statutory tax exemption.

Unless there is a legally cognizable dedication/acceptance or a statutory exemption tied to ownership/use, the road remains privately owned and taxable.

B. Easements and right-of-way agreements

A road subject to an easement (e.g., a right-of-way granted to neighbors or the general public) usually remains owned by the servient estate. The existence of an easement generally does not eliminate RPT liability on the land; it may affect valuation in some cases, but it is not, by itself, an exemption.

VIII. The “beneficial use” trap: government-owned but still taxable

Even if the road becomes government-owned, the LGC’s beneficial use qualifier matters.

A. How beneficial use can make government property taxable

If government owns the property but grants beneficial use to a taxable private entity (through lease, concession, usufruct-like arrangements, or similar), the property can be treated as taxable despite government ownership.

B. Roads and PPP/toll scenarios

In large infrastructure projects, the underlying right-of-way may be government-owned, while a private concessionaire has rights to operate/collect fees. The tax outcome can vary depending on:

the legal structure of the concession,
which entity owns the land vs. improvements,
whether beneficial use is deemed granted,
and whether special laws/contracts affect allocation.

For “private roads used by the public,” this issue usually arises when the “public access” is coupled with revenue rights or exclusive operational control by a taxable entity.

IX. Requirements checklist: What typically must be shown to obtain exemption (or cancel an existing assessment)

A. If claiming the road is now public (government-owned / public dominion)

You generally want as many of these as possible:

Proof of dedication (express instrument, approved plans, annotations, development approvals)
Proof of acceptance by the appropriate public authority (LGU resolution, ordinance, acceptance certificate, turnover documents)
Proof of ownership transfer (TCT in the LGU/Republic’s name) or strong proof that the road lot is legally committed to public dominion
Proof of government control/maintenance (engineering office certification, inclusion in LGU road inventory, maintenance records)
Assessor coordination: cancellation of private tax declaration and issuance of exempt tax declaration

B. If claiming exemption as an exempt institution (use-based exemption)

Proof the owner qualifies (e.g., SEC registration/bylaws for non-stock/non-profit, articles of incorporation, proof of charitable/educational/religious character as applicable)
Proof the road is actually, directly, and exclusively used for the exempt purpose
Site plans/campus maps showing the road’s functional integration with exempt facilities
Certifications/affidavits and absence of commercial exploitation
If mixed use exists: a portioning plan showing which areas are exempt vs. taxable

C. If the goal is valuation relief (not full exemption)

Where exemption is not available, evidence affecting market value or assessment level may still matter:

legal restrictions (easements, setbacks),
inability to commercially exploit,
physical constraints,
documented right-of-way burdens.

This is not “exemption,” but may reduce liability.

X. Procedure: How exemption issues are raised and resolved (administrative route)

A. At the assessor level

File a request for issuance of an exempt tax declaration or cancellation/adjustment of assessment with supporting documents.

B. Appeals involving assessment/exemption

Disputes commonly proceed through:

Local Board of Assessment Appeals (LBAA) and then
Central Board of Assessment Appeals (CBAA) and, on questions of law, potentially to the courts.

Deadlines are strict in RPT practice; missing the proper period can forfeit remedies.

C. If taxes have been paid and refund/credit is sought

The Local Government Code provides mechanisms for payment under protest and refund/credit under specified periods and conditions, typically coursed through the local treasurer and then appeal bodies where applicable.

XI. Common scenarios and likely tax outcomes

Scenario 1: Road lot titled to a private corporation; public uses it as a shortcut; no turnover

Likely outcome: Taxable. Public use alone is not a statutory exemption.

Scenario 2: Subdivision road lots shown on approved plans; deed of donation executed; LGU accepted; title transferred (or transfer process well-documented)

Likely outcome: Exempt as government property (subject to beneficial use issues).

Scenario 3: HOA owns roads; gates are open; LGU occasionally repairs; no formal acceptance/turnover

Likely outcome: Often still taxed in practice; exemption claim depends on proof of dedication + acceptance sufficient to treat as public dominion.

Scenario 4: School owns internal roads; roads serve school operations; no commercial leasing; meets ADAE use test

Likely outcome: Potentially exempt (use-based), but documentation must show the strict use standard.

Scenario 5: “Private road” primarily serves commercial tenants and customers; open to public; owner earns rentals

Likely outcome: Taxable; commercial character undermines ADAE exemption.

Scenario 6: Government owns the road but grants exclusive operational control/beneficial use to a taxable entity (structure-dependent)

Likely outcome: Possible taxability under beneficial use rule; fact-specific.

XII. Practical drafting and documentation tips (what tends to persuade assessors and appeal boards)

Anchor the claim in a specific statutory exemption (most commonly: government ownership/public dominion, or ADAE use by exempt institutions).
Treat “public use” as supporting evidence, not the legal basis by itself.
Create a clean paper trail: dedication/turnover/acceptance/title transfer where possible.
Get technical certifications (city/municipal engineer; planning office; assessor).
Avoid mixed-use contamination (commercial leasing, tolling, monetized access) if pursuing ADAE exemption.
Map the property precisely (geodetic plan, subdivision plan, tax map) so that the exempt portion (if any) is identifiable.

XIII. Bottom line rules (distilled)

Private ownership + public passage ≠ automatic RPT exemption.
The strongest exemption basis is government ownership (or recognized public dominion status), subject to beneficial use.
A second pathway is ownership by an exempt institution plus strict compliance with actual, direct, and exclusive use.
Many “private roads used by the public” remain taxable until a formal turnover/acceptance (especially in subdivision/HOA contexts).
When exemption is uncertain, a fallback approach is assessment/valuation correction rather than all-or-nothing exemption.

This article is general legal information for the Philippine setting and is not a substitute for advice on a specific set of facts.