< Back to H.R. 1350 (105th Congress, 1997–1998)

Text of the Homeowners Association Clarification Act of 1997

This bill was introduced on April 16, 1997, in a previous session of Congress, but was not enacted. The text of the bill below is as of Apr 16, 1997 (Introduced).

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HR 1350 IH

105th CONGRESS

1st Session

H. R. 1350

To amend the Internal Revenue Code of 1986 to allow associations of persons holding timeshare interests in residential property to elect to be taxed as homeowner associations.

IN THE HOUSE OF REPRESENTATIVES

April 16, 1997

Mr. SHAW (for himself, Mr. NEY, and Mr. BOEHNER) introduced the following bill; which was referred to the Committee on Ways and Means


A BILL

To amend the Internal Revenue Code of 1986 to allow associations of persons holding timeshare interests in residential property to elect to be taxed as homeowner associations.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ‘Homeowners Association Clarification Act of 1997’.

SEC. 2. ASSOCIATIONS OF HOLDERS OF TIMESHARE INTERESTS TO BE TAXED LIKE OTHER HOMEOWNERS ASSOCIATIONS.

    (a) TIMESHARE ASSOCIATIONS INCLUDED AS HOMEOWNER ASSOCIATIONS-

      (1) IN GENERAL- Paragraph (1) of section 528(c) of the Internal Revenue Code of 1986 (defining homeowners association) is amended--

        (A) by striking ‘or a residential real estate management association’ and inserting ‘, a residential real estate management association, or a timeshare association’ in the material preceding subparagraph (A),

        (B) by striking ‘or’ at the end of clause (i) of subparagraph (B), by striking the period at the end of clause (ii) of subparagraph (B) and inserting ‘, or’, and by adding at the end of subparagraph (B) the following new clause:

          ‘(iii) owners of timeshare rights to use, or timeshare ownership interests in, association property in the case of a timeshare association,’, and

        (C) by inserting ‘and, in the case of a timeshare association, for activities provided to or on behalf of members of the association’ before the comma at the end of subparagraph (C).

      (2) TIMESHARE ASSOCIATION DEFINED- Subsection (c) of section 528 of such Code is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph:

      ‘(4) TIMESHARE ASSOCIATION- The term ‘timeshare association’ means any organization (other than a condominium management association) meeting the requirement of subparagraph (A) of paragraph (1) if any member thereof holds a timeshare right to use, or a timeshare ownership interest in, real property constituting association property.’.

    (b) EXEMPT FUNCTION INCOME- Paragraph (3) of section 528(d) of such Code is amended by striking ‘or’ at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting ‘, or’, and by adding at the end the following new subparagraph:

        ‘(C) owners of timeshare rights to use, or timeshare ownership interests in, real property in the case of a timeshare association.’.

    (c) RATE OF TAX- Subsection (b) of section 528 of such Code (relating to certain homeowners associations) is amended by inserting before the period ‘(32 percent of such income in the case of a timeshare association)’.

    (d) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 1996.