💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

GeraldT4
Posts: 1,022
Posted:
As many of us know in private associations, our roadways are probably the biggest budget expense. Not sure how it works in your state, but in New Jersey a private qualified association is due reimbursement from the
municipality for the municipality's cost to remove snow, the municipality's cost for street lighting, and trash pickup. Quoted from the link below, "The purpose of the Municipal Services Act is simple – eliminate double taxation of community association residents."

http://www.njlawblog.com/2006/07/articles/community-associations/is-your-association-receiving-the-benefits-of-the-municipal-services-act/

Perhaps your state has similar rulings in favor of your association, perhaps not. Either way you may benefit from the information above, and that one state in our country recognizes the unfair concept of double taxation. You're already paying taxes to your municipality once, why not get something back for relieving the municipality of it's obligation to provide you the services it provides every other resident outside of your association's borders?
GloriaM (North Carolina)
Posts: 829
Posted:
Gerald:

I was active back in the 1980s in getting that Act passed. I was managing 408 condo's in Parlin, NJ and approached the town about garbage, lights and snow services and was successful in getting this HOA to stop paying for these services.

Here in NC I have been successful in getting HOA's to be tax exempt from paying property taxes on common areas. However street lighting and road maintenance through the NCDOT has proven to be a harder and bigger battle, nonetheless with perseverance we have been victorius in this as well.

When the developer files for the HOA (here in NC) although he files it as a Not-for-Profit, he as the developer still makes a profit therefore he must pay property taxes on the common areas. Until he deeds the property over to the HOA. Unfortunately I have found many times the developer turns over the tax bills as well. We have had to go through the application with the Tax Assessor in getting our communities tax exempt.
GeraldT4
Posts: 1,022
Posted:
GloriaM - Thank you for your perseverance and role in getting the Act passed.
PaulM (Pennsylvania)
Posts: 1,347
Posted:
GloriaM: Kudos to YOU for your wonderful tax efforts on behalf of association residents. Will you consider moving to Pennsylvania?

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here