Me and my wife currently reside in a condo and just a few weeks before the 2013 we found out that our association dues will be increased by 12%.
My immediate reaction was "Oh crap."
My understanding is that association dues are collected for the purpose of maintaining the building and paying the bills for common areas. So, why the tax?
Let's try to put this in the perspective of home owners. When a home owner needs to fix something in their house, they would have to acquire items and services. All those items and services are already taxable. On the other hand, we've got many unit owners in a condo. So it makes sense to share the building upkeep. To represent the unit owners, we have the building administrators. They hold the money given by unit owners and use that money to acquire items and services that are also taxed.
So where exactly does the new tax fit in? Maybe Atty. Henares should revisit and revise the policy to only tax the fee of the building administrators since unit owners use their services to make sure that the building is running as smooth as silk.
I can see myself spending that 12% on other taxable things...maybe a nice meal...or more grocery items...new clothes...or money saved for a rainy day.
Do you think association fees should be taxed?
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