So you think only government entities have taxing
authority? Thank the Colorado
legislature and the Community Association Institute (CAI) for bestowing this
authority on HOA property property management companies (PMCs). The definition of a tax is "a compulsory
contribution to state revenue, levied by the government on workers' income and
business profits or added to the cost of some goods, services, and
transactions". Similarly, PMCs have
the authority to levy a compulsory "exit tax", better known as a
transfer fee, on the sale of homes in HOAs. for no other reason than
"because they can". Making
this worse, this is a no questions asked fee, no rules or amount limits,
sellers can't shop for a better rate, no means for home sellers to protest the
tax because if you don't pay you can't sell, the fee is used by private
companies (PMCs) to enhance profits, and no one in or out of government has
oversight authority over the abusive use of the fee: worse than any tax. This taxing authority to a private firm is
unprecedented and ignored by our legislature costing home owners $15 million a
year. This year HB 14-1254 attempted to
rein in this abusive practice but the CAI (trade group for PMCs) not only road
blocked the Bill but re-wrote it to ensure the transfer fee continues
unabated. When will our legislators end
this extraordinary and improper practice?
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