Real Property Tax (RPT) Payment for Co‑Owned Land Titles in the Philippines
A comprehensive legal guide as of 24 July 2025
1 | Introduction
Real Property Tax (popularly called amilyar) is a local tax levied on lands, buildings, and other immovable property. When the title is held in co‑ownership, every co‑owner must understand not only the Local Government Code of 1991 (LGC, RA 7160) but also the Civil Code provisions on co‑ownership (Arts. 485‑493) and key jurisprudence. This article stitches those strands together, detailing obligations, procedures, remedies, and practical tips for Filipino co‑owners.
2 | Legal Foundations
| Source | Key Provisions Relevant to Co‑Owned Property |
|---|---|
| Constitution, Art. X | Authorizes local governments to create their own sources of revenue. |
| LGC 1991, Book II, Title II, Chap. V (Secs. 197‑283) | Governs assessment, collection, and enforcement of RPT. |
| Civil Code, Arts. 485‑493 | Sets rules on sharing expenses and obligations among co‑owners. |
| Rules of Court, Rule 39, Secs. 12‑15 | Execution and levy procedures, including RPT sales. |
| Notable cases | City Treasurer of Manila v. Philippine Journalists, Inc. (G.R. 162852, 23 Dec 2008); Heirs of Malate v. Galve (G.R. 200779, 22 Apr 2015); Mun. of Makati v. Presiding Judge, RTC Br. 66 (G.R. 128819, 31 Mar 2000). |
3 | Definition and Nature of Co‑Ownership
- Concept – Co‑ownership exists when title or undivided shares over one parcel of land belong to two or more persons (Art. 486).
- Management – Any co‑owner may act to preserve the property; acts of alteration require unanimous consent. Paying taxes is considered a necessary expense of preservation.
- Proportionality – Each co‑owner shoulders expenses and taxes in proportion to his ideal share (Art. 488).
4 | Assessment, Declaration, and Billing
| Step | What Happens | Co‑Owner Considerations |
|---|---|---|
| Declaration | Property must be declared under oath with the assessor (Sec. 202). | Best practice: list all co‑owners by name and percentage to avoid disputes over billing. |
| Classification & FMV | LGU fixes Fair Market Value (FMV) schedules at least once every 3 years (Sec. 212). | Co‑owners may jointly contest FMV during public hearings. |
| Assessment Level | Applied to FMV to arrive at Assessed Value. | Variations across LGUs; residential vs. commercial use matters. |
| Notice of Assessment | Issued within 30 days of assessment (Sec. 223). | Serve every co‑owner if all are listed; otherwise, notice to any co‑owner binds all. |
| Tax Bill / Tax Order of Payment (TOP) | Sent annually or quarterly. | Co‑owners may request split bills reflecting aliquot shares, though LGUs are not legally required to grant this. |
5 | Payment Rules and Schedules
Due Dates – Entire annual RPT is due on or before 31 March, but may be paid in four equal installments:
- Q1: 31 March
- Q2: 30 June
- Q3: 30 September
- Q4: 31 December (Sec. 250)
Discounts
- Up to 20 % for advance payment of the full year (Sec. 251; LGU ordinances vary).
Penalties & Interest
- 2 % per month on the unpaid amount, capped at 36 months (Sec. 255).
- Penalty attaches per co‑owner only if LGU issued individual split bills; otherwise attaches to the whole property.
6 | Liability of Co‑Owners
| Scenario | Legal Consequence |
|---|---|
| Any co‑owner pays entire RPT | He may seek reimbursement pro‑rata from co‑owners and can place a statutory lien over their shares (Art. 488, Civil Code). |
| Partial payment by one co‑owner | LGU treats payment as partial settlement for the whole; remaining balance remains a lien on the property. |
| Non‑payment | RPT constitutes a superior lien over the property, prior to mortgages and most other liens (Sec. 257). No need for annotation on title to be effective. |
7 | Remedies for Non‑Payment
Administrative Action
- Issuance of Warrant of Levy (Sec. 258).
- Advertisement and Public Auction after 30 days.
Redemption Period
- One year from date of sale (Sec. 261). Any co‑owner may redeem upon paying the tax, interest (up to 2 %/mo), plus not more than 2 %/mo of the purchase price.
Consolidation of Title
- If not redeemed, purchaser may secure a Final Bill of Sale and petition for transfer of title. Co‑owners lose the property in toto, even if only some defaulted.
Judicial Action
- Contest assessment before the Local Board of Assessment Appeals (LBAA) within 60 days from receipt of assessment; appeals up to the CTA (Secs. 226‑231).
- Injunctions against levy require payment of the undisputed portion (Sec. 267).
8 | Rights of a Paying Co‑Owner
- Reimbursement with Interest – May recover proportional shares plus lawful interest.
- Retention Right – May retain possession of the property or its fruits until reimbursed (analogous to Art. 546).
- Subrogation to LGU Lien – In practice, courts recognize that the paying co‑owner steps into the shoes of the LGU’s tax lien vis‑à‑vis delinquent shares.
Case illustration: In Heirs of Malate v. Galve, one heir’s payment of realty taxes preserved the estate; the Supreme Court allowed reimbursement with 12 % interest p.a. from demand.
9 | Transfer, Partition, and Estate Settlement Implications
| Transaction | RPT Impact |
|---|---|
| Sale of an undivided share | Seller must present latest RPT clearance; buyer becomes solidarily liable for prior unpaid taxes. |
| Extrajudicial Settlement & Partition | RPT must be current before the Registry of Deeds (RD) accepts deeds and issues new titles; LGU issues Tax Clearance Certificate and individual Tax Declarations for the subdivided lots. |
| Donation | Donor/Donee solidarily liable for any back taxes. |
| Estate Tax Return (BIR Form 1801) | BIR now requires proof of RPT payment up to the quarter preceding filing. |
10 | Special Situations & Recent Developments (2019‑2025)
Amnesties/Condonations
- RA 11569 (2021) waived all RPT on Independent Power Producers (IPPs)—does not apply to ordinary co‑owners.
- Many LGUs granted pandemic‑era interest waivers (2020‑2022). Check local ordinances.
Digital Payment Platforms
- Major LGUs (e.g., Quezon City, Taguig, Cebu City) now accept GCash, PayMaya, LandBank Link.Biz. Co‑owners can pay remotely and download e‑ORs bearing all registered owners.
E‑Statement of Account (e‑SOA)
- Co‑owners may generate personalized SOAs showing only their aliquot share in some LGUs (e.g., Valenzuela City since 2023). This eases reimbursement tracking.
RPT Holidays for Housing Projects
- Under BP 220 and RA 7279, socialized housing may enjoy RPT exemptions for up to 5 years after issuance of a Certificate of Completion—co‑owners must apply individually if lots have been partitioned only on paper.
11 | Practical Tips for Co‑Owners
- Have the tax declaration reflect exact shares to avoid disputes on billing.
- Rotate the role of “tax custodian.” Keep receipts; share scanned copies via cloud folder for transparency.
- Secure quarterly Statement of Account before paying—prevents over‑payment and simplifies reimbursement.
- Use a simple MOA spelling out who pays, when to reimburse, and penalties for late reimbursement.
- Monitor notices posted at barangay halls or the property itself—levy notices are often served by posting.
- If one co‑owner pays, send demand letters soon after, to start interest running and preserve rights.
12 | Conclusion
Real Property Tax on co‑owned land is more than just an annual bill—it is a preferred lien that can wipe out ownership if ignored. Philippine law makes every co‑owner responsible, yet gives the diligent payer strong rights of reimbursement and retention. Staying current, documenting payments, and internal agreements among co‑owners are the surest shields against levy and auction. In a property market increasingly digitized and enforcement‑driven, informed co‑ownership is not just advisable—it is indispensable.