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Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
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Experience:  GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
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We are a non profit, incorporated, Texas Homeowners

Resolved Question:

We are a non profit, incorporated, Texas Homeowners Association. Are we obligated to pay property taxes on our common areas? There is a small park, with a total of about 1/2 acre.
Submitted: 8 years ago.
Category: Tax
Expert:  Ed Johnson replied 8 years ago.

Dear DoyleC,

This depends on your buylaws, and charter information. Some assoiciatgion rules apportion the common areas between the home owners, and retain property taxes for only the space occupied by the offices and equipment storage facilities if any.

Others pay common area taxes which become operating expenses.

There is no law in Texas that requires it.

However, if the bilaws and articles of incorporation do not contain any language at all regarding the apportionment of property taxes for the common area, then the assoication would be obligated.

WHy, if there is no law? Because ownership converys the responsibility for taxes. AND, the tenancy relationship between the association and the home owners convey's responsibility for common areas.


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