SB55 SUB1
Senate Bill 55 History
OTHER VERSIONS -
Introduced Version
|
| Email
Key: Green = existing Code. Red = new code to be enacted
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 55
(By Senators Sypolt, McCabe and Carmichael)
____________
[Originating in the Committee on Government Organization;
reported February 21, 2013.]
____________
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §11-15-9o,
relating
generally to consumers sales and service tax liability of
homeowners' associations and their members; and exempting from
consumers sales and service tax liability
the dues, fees and
assessments paid by members to homeowners' associations which
are to be used by
the homeowners' association acting in its
representative capacity for all members to purchase for the
members, rather than sell to the members, such goods and
services.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §11-15-9o, to read as
follows:
ARTICLE 15. CONSUMERS SALES AND SERVICE TAX.
§11-15-9o. Exemption for dues, fees and assessments paid to a
homeowners' association by a member; and exemption
for certain contracts to purchase third party goods
or services by homeowner's association.
(a) Membership dues, fees and assessments paid to a
homeowners' association by a member thereof are exempt from the tax
imposed by this article if the dues, fees and assessments are for
the purpose of permitting or funding the homeowner's association to
contract for purchase of third-party goods or services when acting
in its representative capacity for all members, and only as a
conduit for funds from the members, and not when the homeowner's
association is selling taxable goods and services, without profit
to its members: Provided, That purchases of taxable goods and
services by the homeowners' association, when acting in its
representative capacity for all members, are not exempt from
consumer sales and services tax or use tax.
(b) For purposes of this article:
(1) "Homeowners' association" means a homeowners' association
as defined in Section 528 of the Internal Revenue Code of 1986, as
amended. The term "homeowners' association" also includes any unit
owners association organized under section one hundred one, article
three, chapter thirty-six-b of this code.
(2) "Member" means a person having membership rights in a homeowners' association, in accordance with the provisions of its
articles of incorporation, bylaws or other instruments creating its
form and organization; and having bona fide rights and privileges
in the organization ordinarily conferred on members of the
homeowners' association, such as the right to vote, the right to
elect officers and directors and the right to hold office within
the organization. The term "member" also includes a "unit owner"
as that term is defined in section one hundred three, article one,
chapter thirty-six-b of this code.