Blank Texas Ap 206 PDF Form Get Texas Ap 206 Here

Blank Texas Ap 206 PDF Form

The Texas AP 206 form serves as an Application for Exemption specifically designed for homeowners' associations seeking relief from Texas franchise tax. This form is applicable to nonprofit corporations organized primarily for the management and maintenance of residential properties, ensuring that such properties are not used for commercial purposes. To qualify for this exemption, the homeowners' association must demonstrate that its individual resident owners maintain at least 51% voting control.

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The Texas AP 206 form serves as a crucial application for homeowners' associations seeking exemption from state franchise taxes. This form is specifically designed for nonprofit corporations that manage residential properties, ensuring they can operate without the financial burden of certain taxes. To qualify, the association must be primarily focused on obtaining, managing, constructing, and maintaining residential properties, such as condominiums or real estate developments that are exclusively used for residential purposes. Notably, the individual owners of these properties must maintain at least 51% voting control over the association, which prevents commercial entities from exerting influence. The exemption applies only to franchise tax reports due on or after May 1, 1982, and is governed by Section 171.082 of the Texas Tax Code. Additionally, while the form allows for tax exemptions based on federal classifications under the Internal Revenue Code, it is important to note that these organizations may still be subject to hotel occupancy taxes. Completing the AP 206 form involves providing detailed information about the association's structure, property usage, and voting rights, all of which are essential for verifying eligibility for the exemption. For those interested in applying, the completed form must be submitted to the Texas Comptroller of Public Accounts, who will review the application and communicate the outcome within ten working days.

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Texas Application for Exemption
– Homeowners’ Associations
A nonprot corporation that is a homeowners’ association should use this application to request exemption from
Texas franchise tax. The homeowners’ association exemption extends only to franchise tax and is applicable to
franchise tax reports due on or after May 1, 1982.
To receive a state franchise tax exemption as a homeowners’ association, the association must be a nonprot
corporation organized and operated primarily to obtain, manage, construct and maintain the property in or of a
residential condominium or residential real estate development that is legally restricted for use as residences.
The property cannot be used for any commercial activity. Additionally, the individual resident owners of the lots,
residences or residential units must have at least 51% voting control of the association.
The exemption for a homeowners’ association is provided for in Section 171.082, Texas Tax Code, and more
detailed information is available in Franchise Tax Rule 3.583.
Texas tax law provides an exemption from sales tax on goods and services purchased for use by organizations
exempt under Section 501(c)(3), (4), (8), (10) or (19), Internal Revenue Code (IRC). However, exempt organizations
are required to collect tax on most of their sales of taxable items. See Exempt Organizations, Sales and Purchases,
Publication 96-122.
Texas law also provides an exemption from franchise taxes for corporations exempted from the federal income tax
under IRC Section 501(c)(2), (3), (4), (5), (6), (7), (8), (10), (16), (19) or (25).
If your organization has been granted federal tax exemption under one of the qualifying sections listed above,
your organization will be granted an exemption from Texas franchise tax, or sales and franchise tax, on the basis
of the Internal Revenue Service (IRS) exemption, as required by state law. Organizations that qualify for state tax
exemption based on the federal exemption are not exempt from hotel occupancy tax because the hotel occupancy
tax law does not recognize any federal exemptions.
The laws, rules and other information about exemptions are online at www.Comptroller.Texas.Gov/taxes/exempt.
You can submit your completed application along with required documentation by mail, fax, or email
Mail: Texas Comptroller of Public Accounts
Exempt Organizations Section
P.O. Box 13528
Austin, Texas 78711
FAX: (512) 475-5862
Email: [email protected]
We process applications in the order they are received. To establish claimed exemptions, we may require
additional information. After review of the material, we will inform the organization in writing if it qualies for
exemption. The Comptroller, or an authorized representative of the Comptroller, may audit the records of
an exempt organization at any time during regular business hours to verify the validity of the organization’s
exempt status.
If you have questions or need more information, contact us at 800-252-5555.
You have certain rights under Chapters 552 and 559, Government Code, to review, request and correct information we have on le about you.
Contact us at the address or phone number listed on this form.
AP-206-1 (Rev.7-26/11)
1. Corporation name (For Texas corporations, name must match the ocial corporate name as on le with the Texas Secretary of State.
For out-of-state corporations, name must match the ocial corporate name as led in the home state of charter.)
2. Texas taxpayer number .............................................................................................................
Name Title
Firm or company name Daytime phone (Area code and number) Extension
Address City State ZIP code
Email address
File number ........................................ File date...............................
4. Is the corporation’s purpose to organize and operate primarily to obtain, manage, construct and maintain property in or
of a residential condominium or residential real estate development? ..........................................................
Month Day Year
YES NO
5. Number of lots/units shown on the plat map for the real estate development ...............................................
6. Number of lots/units owned by residential owners ........................................................................................
7. Number of Lots owned by developers, builders, banks, investors, or other similar commercial parties .......
7a. Provide the name of the declarant identied in the organization’s Declaration...
9. Does the real estate development engage in any commercial activity or have amenities for which non-residents can use
for a fee? (examples: golf course, air strip, clubhouse, event venue) (Check yes or no) ...................................
YES NO
10. Does the Declaration provide for di󰀨erent classes of votes? .......................................................................
YES NO
CLASS A:
CLASS B:
AP-206-2
(Rev.7-26/11)
Texas Application for State Tax Exemption
for Homeowners’ Associations
• TYPE OR PRINT
• Do NOT write in shaded areas.
Page 1
PLEASE COMPLETE THE FOLLOWING INFORMATION
Name, address and daytime phone number of person submitting this application
3. For TEXAS corporations, ling information issued by the Secretary of State:
4a. If yes, please provide a copy of the page found in the Articles of Incorporation, Declaration, or
Bylaw, including any subsequent amendments, that cite the purpose stated above.
The corporation will maintain proof that the condominium project or real estate development is legally restricted for use as
residences, with no commercial use allowed, and will maintain proof that the collective resident owners of individual lots,
residence or units control at least 51 percent of the votes of the corporation.
Items 6 and 7 must equal the total reported in Item 5.
8. Provide a list of the owners of each lot.
If YES, identify the members of each class identied in the declaration.
(List additional classes if necessary)
(CONTINUED ON BACK SIDE)
PRINT FORM
CLEAR FIELDS
12. Based on the information provided above, the date the individual resident owners
collectively gained voting control (at least 51 percent) of the association was .....................................
Month Day Year
AP-206-3
(Rev.7-26/11)
Texas Application for State Tax Exemption
for Homeowners’ Associations
• TYPE OR PRINT • Do NOT write in shaded areas.
Page 2
11. Provide the number or percentage of votes each member is entitled to and provide a copy of the voting rights
from the organizations’ declaration.
⇓ Texas Ap 206 PDF

Document Specs

Fact Name Details
Purpose of Form The Texas AP 206 form is used by nonprofit corporations that are homeowners’ associations to request exemption from Texas franchise tax.
Eligibility Criteria To qualify for the exemption, the association must be organized primarily for residential purposes, with individual resident owners holding at least 51% voting control.
Governing Law The exemption for homeowners’ associations is outlined in Section 171.082 of the Texas Tax Code and further detailed in Franchise Tax Rule 3.541.
Application Process Completed applications must be sent to the Comptroller of Public Accounts, which will notify the organization of the application status within 10 working days.
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