Texas Form Ap 206 – Fill Out and Use This PDF

APPLICATION FOR EXEMPTION — HOMEOWNERS’ASSOCIATION

SUSAN COMBS • TEXAS COMPTROLLER OF PUBLIC ACCOUNTS

A nonprofit corporation that is a homeowners’ association should use this application to request exemption from Texas franchise tax. The homeowners’ association exemption extends only to franchise tax and is applicable to franchise tax reports due on or after May 1, 1982.

To receive a state franchise tax exemption as a homeowners’ association, the association must be a nonprofit corporation organized and operated primarily to obtain, manage, construct and maintain the property in or of a residential condominium or residential real estate development that is legally restricted for use as residences. The property cannot be used for any commercial activity. Additionally, the individual resident owners of the lots, residences or residential units must have at least 51% voting control of the association.

The exemption for a homeowners’ association is provided for in Section 171.082, Texas Tax Code, and more detailed information is available in Franchise Tax Rule 3.541.

Texas tax law provides an exemption from sales tax on goods and services purchased for use by organizations exempt under Section 501(c)(3), (4), (8), (10) or (19), Internal Revenue Code (IRC). However, exempt organizations are required to collect tax on most of their sales of taxable items. See Exempt Organizations, Sales and Purchases, Publication 96-122.

Texas law also provides an exemption from franchise taxes for corporations exempted from the federal income tax under IRC Section 501(c)(2), (3), (4), (5), (6), (7), (8), (10), (16), (19) or (25).

If your organization has been granted federal tax exemption under one of the qualifying sections listed above, your organization will be granted an exemption from Texas franchise tax, or sales and franchise tax, on the basis of the Internal Revenue Service (IRS) exemption, as required by state law. Organizations that qualify for state tax exemption based on the federal exemption are not exempt from hotel occupancy tax because the hotel occupancy tax law does not recognize any federal exemptions.

The laws, rules and other information about exemptions are online at:

http://window.state.tx.us/taxinfo/exempt

Send the completed application along with all required documentation to:

Comptroller of Public Accounts

Exempt Organizations Section

P.O. Box 13528

Austin, Texas 78711-3528

We will contact you within 10 working days after receipt of your application to let you know the status of your application. We may require an organization to furnish additional information to establish the claimed exemption. After a review of the material, we will inform the organization in writing if it qualifies for exemption. The comptroller or an authorized representative of the comptroller may audit the records of an organization at any time during regular business hours to verify the validity of the organization’s exempt status.

If you have questions or need more information, contact our Tax Assistance staff at 1-800-252-5555 or, in Austin, call 463-4600.

You have certain rights under Chapters 552 and 559, Government Code, to review, request, and correct information we have on file about you. Contact us at the address or toll-free number listed on this form.

AP-206-1 (Rev.1-07/4)

AP-206-3
(Rev.1-07/4)
TEXAS APPLICATION FOR STATE TAX EXEMPTION		• TYPE OR PRINT
FOR HOMEOWNERS’ ASSOCIATIONS		• Do NOT write in shaded areas.	Page 1

PLEASE COMPLETE THE FOLLOWING INFORMATION

1.SEE INSTRUCTIONS The primary purpose of the corporation as quoted directly from the association's Articles of Incorporation, Declaration, or Bylaws, including any subsequent amendments, is

as found in

(Title of document and cite from which the language was taken)

2. SEE INSTRUCTIONS Number of lots/units shown on the plat map for the real estate development ..........

3. SEE INSTRUCTIONS Number of residential lots/units owned by individual owner .....................................

4.SEE INSTRUCTIONS Number of lots/units units owned by declarant, developers, builders,

banks, investors, or other similar parties .....................................................................................................

Items 3 and 4 must equal the total reported in Item 2.

(Title of document and cite from which the language was taken)

CLASS A:

CLASS B:

(List additional classes if necessary)

5b. Enter the language that identifies the number of votes each member is entitled to, including the declarant’s voting rights.

Title of document and cite from which 5b was taken:

5c. List conditions that determine when the Declarant’s voting rights ceased, or converted to other conditions allowing the individual owners to gain voting control of the association.

Title of document and cite from which 5c was taken:

6. Based on the information provided above, the date the individual resident owners

Month Day Year

collectively gained voting control (at least 51 percent) of the association was:

7.Corporation name (For Texas corporations, name must match the official corporate name as on file with the Texas Secretary of State. For out-of-state corporations, name must match the official corporate name as filed in the home state of charter)

(CONTINUED ON BACK SIDE)

8.

Name, address and daytime phone number of person submitting this application

Name

Title

Firm or Company Name

Daytime Phone (Area code and number)

Extension

Address

City

State

Zip

9.

Texas taxpayer number

10.

Federal employers identification number (if applicable)

11.For TEXAS corporations, filing information issued by the Secretary of State:

Month Day Year

12. For NON-TEXAS corporations, filing information issued by the Texas Secretary of State:

Month Day Year

I, _____________________________________________ , ________________________________________________

(Name)(Title)

of ________________________________________________________________________________________ , affirm

(Corporation Name)

the homeowner's association is a nonprofit corporation.

I further state that the corporation is organized and operated primarily to obtain, manage, construct, and maintain property in or of a residential condominium or residential real estate development.

The corporation will maintain proof that the condominium project or real estate development is legally restricted for use as residences, with no commercial use allowed, and will also maintain proof that the collective resident owners of individual lots, residences, or units control at least 51 percent of the votes of the corporation.

___________________________________________________ DATE _________________________________