Can a Homeowner Association (HOA) charge taxes on the dues?

[davidrshostak]

My HOA in Utah is charging taxes to our monthly dues. Can taxes be charged?

[Mike9241]

for what? what type of taxes? 

Homeowners associations (HOAs) are generally not tax-exempt. They must pay income taxes and file tax returns, but they can take advantage of certain tax benefits under IRC 528 by filing Form 1120-H. However, HOAs can qualify for tax exemption under specific statuses, such as 501 (c) (4) or 501 (c) (7), which would exempt them from income taxes, except for unrelated business activities. It's important to note that while HOAs are non-profit corporations, they are not considered non-taxable entities by the government.

also you use the word "dues" rather than "assessments" - amounts charged monthly to owners to cover the expenses of operating the HOA. Generally, these would be income tax exempt.

dues could relate to something like the HOA having a golf course. That would likely be non-tax-exempt and be subject to income taxes. 

we don't have enough info to give a definitive answer.