Did you know that CCIOA prohibits governmental entities from separately taxing an association’s common elements? It’s true! Section 105(2) of CCIOA prohibits separate property taxes from being imposed directly against common elements. This is why an association should never receive a tax bill for any of its common elements.
But how does a municipality get its tax dollars from common element real estate if it cannot send a tax bill to the association? According to CCIOA, the owners in the community collectively share in paying taxes on the common elements. In a condominium community, the taxing entity allocates the taxes among owners in proportion to each owner’s allocated interest in the common elements. With respect to planned unit developments (i.e. townhome and single family communities), the taxes are allocated in accordance with each owner’s portion of the common expense liability.
If your community ever receives a tax bill on common element land, you should contact the association’s legal counsel so the attorney can get this matter straightened out with the assessor’s office.