Published on: November 20, 2009
We are pleased to inform you that on November 19, 2009, the Massachusetts House and Senate passed legislation that includes provisions that will exempt condominiums from the corporate excise tax. In July 2008, the legislature passed a bill containing major corporate tax reforms. Under these 2008 reforms, condominiums would have been subject to a minimum corporate tax of $456, along with an increased rate on taxable income. However, the legislation passed on November 19, 2009, will now provide a specific exemption for condominium associations from both the corporate excise tax and the increased rate on taxable income.
MEEB attorneys Thomas Moriarty who is the Chair of the CAI Massachusetts Legislative Action Committee and Matthew Gaines a member of the MA-CAI Legislative Action Committee worked with legislative leaders and officials from the Department of Revenue to explain to them the unintended consequences the changes to the state tax law would have on condominiums if action were not immediately taken to reverse the 2008 changes. Fortunately, these efforts prevailed, and condominium associations will not be subject to any new corporate taxes.
If you would like further information on this issue you may contact Matthew Gaines at email@example.com.