Sales Tax on Common Fees?

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J.H. from New Haven County writes:

Dear Mister Condo,

The Management Company is charging sales tax on the common fees of owner occupied condominiums. Is that right?

Mister Condo replies:

J.H., no, that is not right! Common fees, in and of themselves, are not subject to state sales tax here in CT or anywhere else that I am aware of. However, if the association incurred a tax burden and an assessment was added to your monthly common fees to pay for that tax burden, I could understand where a unit owner might get a bill that showed a portion of the bill being used to pay taxes. If you are uncertain as to what the sales tax charge is for, I suggest you contact your property management company. If they are errantly charging you and other residents a sales tax, I hope you and your neighbors get a refund. Good luck!

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