Senate Bill No. 234
(By Senators Tomblin, Mr. President, Barnes and Unger)
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[Introduced January 20, 2006; referred to the Committee
on Finance.]
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A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §11-15-9i,
relating
generally to consumers sales and service tax liability of
homeowners' associations and their members; exempting from
tax dues, fees and assessments paid to homeowners'
associations by members thereof; providing for taxability
and exemption of purchases by homeowners' associations; and
defining certain terms.
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 §11-15-9i, to read as
follows:
ARTICLE 15. CONSUMERS SALES AND SERVICE TAX.
§11-15-9i. Exemption for dues, fees and assessments paid to a
homeowner's association by a member.
(a) Membership dues, fees and assessments paid to a
homeowners' association by a member thereof are exempt from the
tax imposed by this article. This section shall not be construed
to exempt from tax purchases of tangible personal property or
services from homeowners' associations by nonmembers. Purchases
of tangible personal property or services made by a homeowner's
association are not exempt as purchases for resale except for
those purchases of tangible personal property or services resold
to nonmembers and subject to the tax imposed by this article at
the time of resale. This section shall not be construed to
abrogate or infringe upon other statutory exemptions applicable
to purchases or sales by homeowners' associations.
(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.
NOTE: The purpose of this bill is to exempt from consumers
sales and service tax payments of homeowners' association dues,
fees and assessments by homeowners' association members to the
homeowners' association.
This section is new; therefore, strike-throughs and
underscoring have been omitted.
)