Homeowners associations, such as condominium management
associations and residential real estate management associations, may elect to
be treated as tax-exempt organizations for taxable years beginning on and after
January 1, 1978. But this tax-exempt status will protect the association from
tax only on its exempt function income, such as membership dues, fees, and
assessments received from member-owners of residential units in the particular
condominium or subdivision involved. The homeowners association taxable income
will be taxed at the corporate rates provided in ORS
317.061. To qualify for the
election, the association must meet the following conditions:
(1) A copy of the federal Form 1120-H filed
with the Internal Revenue Service must be filed with the Oregon Department of
Revenue no later than the time prescribed by law for filing the return.
(2) It must be organized and
operated as provided in section
528(c) of the
Internal Revenue Code.
(3)
"Homeowners association taxable income" is determined pursuant to section
528(d) of the
Internal Revenue Code and pertinent federal regulations. However, net capital
gains shall be included in the computation of homeowners association taxable
income and shall receive no special treatment.
(4) "Exempt function income" is determined
pursuant to section
528(d) of the
Internal Revenue Code and pertinent federal regulations.
(5) If a homeowners association that elects
to be treated as a tax exempt organization has positive homeowners association
taxable income, it shall be reported on an Oregon Corporation Excise Tax
Return, Form 20 and the association is subject to the greater of the calculated
corporation excise tax or the minimum tax.
(6) If a homeowners association that elects
to be treated as a tax-exempt organization does not have positive homeowners
association taxable income, the association is not required to file an Oregon
Corporation Excise Tax Return, Form 20 and is not subject to the minimum
tax.
Notes
Or. Admin. Code §
150-317-0130
10-7-77; TC
9-1978, f. 12-5-78, cert. ef. 12-31-78, Renumbered from 150-317.080(6)(b); RD
12-1990, f. 12-20-90, cert. ef. 12-31-90; REV 12-1999, f. 12-30-99, cert. ef.
12-31-99; REV 11-2013, f. 12-26-13, cert. ef. 1-1-14; Renumbered from
150-317.067,
REV
67-2016, f. 8-15-16, cert. ef.
9/1/2016
Publications: Publications referenced are available from the
agency pursuant to ORS
183.360(2) and
183.355(1)(b).
Stat. Auth.: ORS
305.100
Stats. Implemented: ORS
317.067
