Ala. Admin. Code r. 810-2-8-.07

Current through Register Vol. 42, No. 6, March 29, 2024

Section 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.

Ala. Admin. Code r. 810-2-8-.07

New Rule: Filed August 20, 2009, effective September 24, 2009.

Authors: Voncile Catledge, Ed Cutter

Statutory Authority:Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-14A-22, 40-14A-43.