Ala. Admin. Code r. 810-2-8-.07 - Definition Of Homeowners Association For Purposes Of Administering The Alabama Business Privilege Tax Law
(1) For purposes of administering the Alabama
business privilege tax law levied by §
40-14A-22, Code of
Ala. 1975, effective with business privilege taxable years
beginning on or after January 1, 2009, and business privilege tax determination
periods beginning on or after January 1, 2008:
(a) Entities which are formed by restrictive
covenant or a declaration of restrictions by the owners of real property in a
defined area which are united as a nonprofit association to improve or maintain
the area's quality will be presumed to be exempt from the Alabama business
privilege tax as "homeowners associations" referred to in §
40-14A-43, Code of
Ala. 1975.
(b) The
not-for-profit corporations referred to as "property owners' associations" in §
40-14A-22, Code of
Ala. 1975, will be treated as "homeowners associations," as
referred to in §
40-14A-43, and will be exempt from
the Alabama business privilege tax.
(c) A unit owners' association organized
under the Alabama Uniform Condominium Act will be treated as a homeowners
association in accordance with §
40-14A-43, if the association is a
nonprofit entity.
(d) For-profit
entities are not presumed to be homeowners associations for purposes of the
Alabama business privilege tax exemption provided for in §
40-14A-43, Code of
Ala. 1975.
Notes
Authors: Voncile Catledge, Ed Cutter
Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-14A-22, 40-14A-43.
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