HOA-Sales Tax In Florida

Started by NicholasL1 • 3 replies • 6474 views

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NicholasL1 (Florida)
Posts: 2

Posted:

I am on the board for a homeowner association in Florida. We have hired contractors to complete tasks in our commmunity. Some contractors for example security, charge us sales tax. Since we are a non-profit organization should we be charged sales tax? Where would I find out information on this?

GeraldT1 (<Not Specified>)
Posts: 519

Posted:

NicholasL1,

Same situation regarding sales tax exists in my North NJ not for profit HOA/COA. The answer is we are charged sales tax. One of the reasons is because the contractor is charged sales tax, and has to declare/show it.

GeraldT1
NNJ

BrianB (California)
Posts: 2,820

Posted:

being non profit does not exempt you from paying sales tax or other taxes. if you wish to become exempt from sales taxes, you must apply for a state or federal tax exemption... more paperwork from the government.

HaroldS (Arizona)
Posts: 906

Posted:

Brian is correct. It isn't automatic, you need to file for an exemption. Texas for instance requires an HOA to be a Federal 503c non profit before you can file for an exemption there. Every state is different. Why don't you call your state sales tax people and ask if there is an exemption for HOAs and the requirement? If granted, you will then have to furnish every vendor with your exemption to not be charged sales tax. A little work one time, but worth it if you have large taxable expenses. Harold

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