Condominium homeowner maintenance fees

From the 2024 DOR Tax Exemption Study

82.04.4298 - Condominium homeowner maintenance fees Description Amounts collected and used by cooperative housing associations, condominium associations or residential property associations solely for repair, maintenance, replacement, management, and improvement of residential structures and commonly held property are deductible from B&O tax. Purpose To treat maintenance fees similarly to funds set aside by homeowners for similar maintenance and upkeep purposes. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $21.337 $21.636 $21.939 $22.246 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $19.833 $21.939 $22.246 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the Office of Financial Management average housing unit growth rate. - Average condo fee is $3,480 per year per household. - Average homeowner association (HOA) fee is $876 per year per home and the fees gro