Discussion:"association property" for HOAs.
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Discussion Forum Index --> Advanced Tax Questions --> "association property" for HOAs.
Discussion Forum Index --> Tax Questions --> "association property" for HOAs.
| 13 September 2009 | |
| The term "association property" is defined in treasury regulation 1.528.3a, and generally includes real and personal property owned by the HOA which is "available for the common benefit." The regulation lists several examples that would normally qualify, such as swimming pools and tennis courts; it also identifies property that would not qualify as HOA property because it is used primarily by nonmembers, such as a retreat or meeting place.
We have a golf course that is used primarily by nonmembers(non-homeowners). The useage has declined over the years by homeowners. Does this mean that our HOA should be paying property taxes on the golf course or all property owned by the association? We file a 1120 form. Any comments or thoughts would be helpful. | |
| 14 September 2009 | |
| Your state allows an HOA to claim a property tax exemption? Which state is that? | |
| 14 September 2009 | |
| I would think that the RE Tax for the "association property" is included in the assessment for each tax parcel in the development and not separately stated and billed to the association. If not you would have heard from the taxing authority by now. | |
| 14 September 2009 | |
| R2 and RKrcpa1, Thanks for your reply. The association is located in NC and the association property is not taxable (property). The issue is the usage of the facility in question, which is used primarily by non-homeowners; therefore, according to the treasury regulation this "association property" would no longer be considered "association property" and the association would need to pay property taxes on the golf facility. | |
| 15 September 2009 | |
| See 105-277.8 of the NC General Statutes. The association itself would not pay taxes. Instead, the members would pay the taxes. | |
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