PASAY CITY — Millions of middle-class Filipino families living in residential subdivisions and condominiums could soon experience financial relief as a new measure seeking to exempt common areas from real property taxes (RPT) has been filed in the Senate.
Senator Francis “Chiz” Escudero has filed Senate Bill No. 2569, which aims to amend Section 234 of Republic Act No. 7160, also known as the Local Government Code of 1991. The proposed legislation targets the removal of hidden costs typically passed down to residents through monthly association dues.
As the chairperson of the Senate Committee on Urban Planning, Housing and Resettlement, Escudero pointed out that taxing shared non-income generating spaces—such as lobbies, hallways, and community parks—unfairly increases homeownership expenses for families already dealing with mortgage amortizations, utility bills, and inflation.
“These areas don’t make money, but they still pay taxes. In the end, it’s the families who live there who shoulder the taxes, not the developer,” Escudero noted.
Under the provisions of the bill, all designated or recognized common areas within residential condominium and subdivision projects will enjoy full RPT exemption, provided they are not utilized for commercial or profit-generating activities. Conversely, any spaces converted into business ventures will remain fully taxable.
Escudero explained that homeownership entails not just unit acquisition but also the continuous maintenance of shared community facilities. Because developers generally pass real property tax burdens onto homeowners’ associations, residents face inflated monthly dues.
The senator believes that removing this tax will motivate developers to allocate more space for community amenities. Furthermore, the measure aims to address the needs of middle-income earners who frequently feel overlooked by direct government aid programs despite forming the backbone of the country’s tax base.
“They often do not qualify for government aid, but they are also the ones who have the heaviest expenses every month. They deserve to receive appropriate attention and assistance to alleviate their burdens,” he added.
Once passed into law, the proposed legislation is expected to significantly lower monthly association dues nationwide, offering much-needed structural relief to households navigating high food, fuel, and utility costs.