D.Y. from Tolland County, Connecticut writes:
Dear Mister Condo,
I own and rent out several condos in a condo complex. Recently, they started charging a “renter’s fee” to cover the portion of sales tax the association had to pay due to rented units. It was $320.00 for tax on the management contract, and $160.00 for tax on roofing work. These amounts were added and then divided by the number of rented units. Each rented unit owes $19.20. Is this legal in CT?
J.D. from Hartford Country writes:
Can the management fee sales tax on a rented/leased unit be passed on to the unit owner?
Mister Condo replies:
D.Y. and J.D., your questions were so similar I decided to lump them together. As long as the sales tax is attributable to the rented units and no others, it is a limited common tax and should be split by the limited units effected using whatever formula is in place to divide the tax. Even if it weren’t “legal”, it sure sounds fair. Should the non-rented unit owners bear the burden for a tax brought about by rented unit owners? Thankfully, it is such a small amount of money that it really shouldn’t be too heavy a burden for the rented unit owners, such as you, to bear. Best wishes.