Senate Bill No. 471
(By Senators Tomblin, Mr. President, Yoder and Plymale)
[Introduced March 7, 2005; referred to the Committee
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §11-15-9i,
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
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
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
(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
This section is new; therefore, strike-throughs and
underscoring have been omitted.