It is true that we do not pay income tax. However there are other forms of taxes that even a nonprofit must pay. In particular, the Inverness Forest Association is subject to property taxes just like individual homeowners. In 2010, the Inverness Forest Association paid $552.25 in property taxes to Montgomery County.
Our "tax-free" status does not protect the IFA homeowners association from being required to also pay fees, which are like taxes, to Montgomery County. Last year the IFA paid almost $1,000 in fees.
Still, these taxes are tiny compared to what individual homeowners pay. I noticed while I was doing my income tax that the property tax on my house was almost 10 times as much as the amount that the IFA pays. Not having to pay income tax is a great benefit to our homeowners association. If you dare to look at your own 1040, you might be shocked to see just how many tens of thousands of dollars you pay to the IRS each year, and don't forget the other thousands you pay in income tax to Maryland and Montgomery County.
Happy Tax Day!
