Condominium and subdivision residents could get relief from association dues under a bill filed by Sen. Francis “Chiz” Escudero seeking to exempt residential common areas from real property taxes.
Senate Bill No. 2569, filed on October 21, proposes amending the Local Government Code to exempt shared spaces such as hallways, lobbies, parks and other common facilities that do not generate income.
Escudero said homeowners end up shouldering the tax burden because developers typically pass the cost of taxing common areas on to homeowners’ associations.
“Hindi naman kumikita ang mga lugar na ito, pero pinapatawan pa rin ng buwis. Sa huli, ang mga pamilyang nakatira ang nagbabayad, hindi ang developer,” he said.
Under the proposal, common areas officially designated or recognized as part of residential condominium and subdivision projects would qualify for the exemption, provided they are not used for commercial or income-generating activities.
Areas converted for business use would remain taxable.
Escudero said the tax adds to the cost of maintaining a home, on top of amortization, utilities and other household expenses.
He also pointed out that middle-income families often miss out on government assistance despite carrying a significant share of the country’s tax burden.
“Madalas silang hindi pasok sa ayuda, pero sila rin ang may pinakamabigat na gastusin buwan buwan. Nararapat lang na sila ay makatanggap ng angkop na atensyon at tulong upang maibsan ang kanilang mga dinadala,” he said.
The proposed exemption would take effect only if the bill becomes law.IMT
