Tax Watch: GET on homeowners association fees

Senate Bill 2401, which was approved by House Representatives, eliminates many GET exemptions – including the GET exemption on community association maintenance fees. This means that home and condominium associations would be charged the GET, and would have to cut their services or raise maintenance fees to cover the tax.

This proposed tax will penalize homeowners associations for providing services that otherwise the State government would have to provide, such as security guards, landscapers, and maintenance workers, Representative Kymberly Pine (R, Ewa Beach-Iroquois Point) pointed out (“SB2401: Homeowners association dues to be taxed,” HawaiiFreePress.com, 4/9/10).

Homeowners associations are not formed to make money – associations pay for employees, water, sewer, utilities, trash pickup, insurance, and property taxes. They often have clean, well-landscaped parks and common areas that beautify the neighborhood, or start neighborhood watches for better security.

This proposed tax on maintenance fees is unfair and unreasonable. It is also double-taxation.

We need to tell our representatives in the Hawaii Legislature that we oppose the GE tax on maintenance fees. And we need to watch any legislators who support this proposal and vote them out of office.

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One Comment on “Tax Watch: GET on homeowners association fees”

  1. Robert Says:

    Homeowner Associations should not be formed to make money; but I believe some of the requirements for the HOA development I live in – which is still under the control of the Declarants – were intended to make money for one or more of the Declarants.

    I moved into an HOA almost 3 years ago – after I thought I had checked things out thoroughly. Boy, was I wrong.

    I’ve developed an informational website to help others check out benefits, issues and potential problems before they buy. I hope everyone that sees this comment will visit it: http://www.CeresGleannLife.info .

    Thanks and good luck with your HOA experience,

    Robert


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