Skip to main content
Homeowners associations (HOAs) may be required to register as a business in Washington. HOAs may be required to register if they provide services beyond general upkeep of the neighborhood common areas or make retail sales. These activities could include operating a golf course, providing water distribution to residents, or providing repair and landscaping services to individual homeowners.
If registered, the HOA may also be required to file excise tax returns. However, some HOAs may qualify for an active non-reporting status.
Reporting B&O tax
If you’re required to file excise tax returns, you will report based on the service(s) you provide to your homeowners. See our Business & Occupation (B&O) tax page for more information about what tax classifications may apply to your activities.
B&O tax deduction
HOAs can take a B&O tax deduction for amounts they received from their members if these amounts were used for at least one of the following purposes, related to residential structures or commonly held property:
- Repairs.
- Maintenance.
- Replacement.
- Improvement.
Commonly held property includes areas required for common access such as:
- Reception areas.
- Halls.
- Stairways.
- Parking.
- Recreation rooms.
- Swimming pools.
- Small parks or recreation areas.
Purchases
HOAs must pay sales tax on third-party charges for repairs, maintenance, replacements, or improvements.
