In the last blog article, we examined whether community associations have to pay income taxes. The natural corollary to that question is the question of whether community associations are required to pay property taxes. The answer to that depends upon whether your community association is a homeowners association or a condominium association. If a homeowners association, the answer is “yes.” If a condominium, the answer is “no.”
The difference between the two types of associations lies in the manner in which the common areas are owned. In a condominium association, each of the individual owners owns a percentage of the common areas, or common elements, as tenants-in-common with the other owners. Since the condominium association does not own the common elements, the condominium association should not be billed for taxes on them. Rather, the value of the common elements is factored into the taxable value of the individual units, so that the individual unit owners each pay any taxes attributable to the common elements when they pay the tax bill on their individuals unit. In fact, the Condominium Act specifically provides that there shall be no tax or assessment levied on the condominium as a whole, but only on the individual condominium units (O.C.G.A. § 44-3-96).