Senate Bill No. 55
(By Senators Sypolt, McCabe and Carmichael)
[Introduced February 13, 2013; referred to the Committee on
Government Organization; and then to the Committee on Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §11-15-9o,
generally to consumers sales and service tax liability of
homeowners' associations and their members; and exempting from
tax dues, fees and assessments paid to homeowners'
associations by members thereof which are to be used by
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
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.
(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 homeowners' association dues, fees and
paid by members thereof which are to be used by
homeowner's association acting in its representative capacity for
all members to purchase for the members, rather than sell to the
members, such goods and services.
This section is new; therefore, strike-throughs and
underscoring have been omitted.