Can a homeowners association qualify for exemption from franchise tax?
A qualifying nonprofit homeowners’ association is exempt from franchise tax. To qualify, the association must be a corporation organized and operated primarily to obtain, manage, construct and maintain the property in or of a residential condominium or residential real estate development. The owners of individual lots, residences or residential units must control at least 51 percent of the votes. The association will not qualify for exemption if voting control is held by a single individual or family, or by one or more developers, declarants, banks, investors or other similar parties.
