Texas Predominant Use Study

TR 9701190L Homeowner Association Electricity Exemptions

January 30, 1997

*************
*************
*************

Dear *************:

Thank you for your letters of January 13, 1997, asking about the taxation of electricity bought from the CITY A for use in equipment in common areas (sprinkler systems, swimming pools, club houses, and exterior lighting) in residential condominium complexes.

A residential condominium complex is a complex in which the units are owner occupied and all rental units are rented for period greater than 30 days. The use of electricity in the common areas of residential condominium complexes is exempt residential use. A mixed-use condominium complex contains units that are rented to tenants for periods less than 29 days. Mixed-use condominium complexes must qualify for exemption based on predominant use as outlined in
Rule 3.295.

The electricity paid for by the following council of co-owners or homeowners associations , an association of individual owners is exempt if the condominium complexes are residential complexes:

************* Council of Co-Owners, Inc.
*************Condominium Owners Association
************* Condo Owner Homeowners Association , Inc.
*************Condo Owners Association
************* Homeowners Association , Inc.
************* Association , Inc.
*************
************* Homeowners Association , Inc.
************* Owners Association , Inc.
************* Owners Association , Inc.
************* Homeowners Association , Inc.
Condominium Owners Association for *************, Inc.
************* Association , Inc.
************* Condominium Homeowners Association , Inc.
************* Homeowners Association , Inc.
*************
************* Condominium Council of Co-Owners
************* Homeowners Association
************* Owners Association , Inc.
************* Homeowners Association , Inc.

The electricity purchased for use by the following associations for operating common areas in residential subdivision is exempt:

************* Property Owners Association
************* Property Owners Association
************* Community Association, Inc.

This opinion is based on the facts presented. If there are additional or different facts, the opinion may change.

You may call me toll free 1-800-531-5441, extension 3-4683. The direct line is 512/463-4683. You may also write to Tax Policy Division, Comptroller of Public Accounts.

Sincerely,
Eddie C. Washington
Tax Policy Division

ACCESSION NUMBER: 9701190L
SUPERSEDED: N
DOCUMENT TYPE: L
DATE: 01/30/1997
TAX TYPE: SALES


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