Do HOAs Pay Sales Tax in Pennsylvania?

Hi Mi,

Homeowners associations in Pennsylvania are generally not required to pay sales taxes on their regular operations or dues collection. However, it’s important to note that specific circumstances can vary, and there may be exceptions depending on the nature of the transactions involved.

Sales taxes typically apply to the sale of tangible goods and certain services. HOAs primarily collect dues and assessments from homeowners to cover common expenses such as maintenance, utilities, insurance, and amenities. These dues are generally not considered taxable sales because they are not transactions involving tangible goods or taxable services.

However, if an HOA engages in certain taxable activities, such as selling merchandise or services to non-members, those transactions may be subject to sales tax in Pennsylvania. Additionally, any income generated from activities unrelated to the association’s exempt purposes may also be subject to taxation.

It’s important for you to consult a tax professional or accountant ensure compliance with any applicable sales tax requirements.