B&O tax deduction
Homeowner Associations (HOAs) can take a B&O tax deduction for amounts they received for their members if these amounts were used for at least one of the following:
- improvement of “commonly held property”
This includes areas required for common access such as:
- reception areas
- recreation rooms
- swimming pools
- small parks or recreation areas (but does not include golf courses, swimming pools, campgrounds, hiking and riding areas, boating areas, etc.).
However, HOAs must pay sales tax on third-party charges for repairs, maintenance, replacement, or improvements.
Reference: RCW 82.04.4298.