Certain homeowners associations

A homeowners association (as defined in subsection (c)) shall be subject to taxation under this subtitle only to the extent provided in this section. A homeowners association shall be considered an organization exempt from income taxes for the purpose of any law which refers to organizations exempt from income taxes. A tax is hereby imposed for each taxable year on the homeowners association taxable income of every homeowners association. Such tax shall be equal to 30 percent of the homeowners association taxable income (32 percent of such income in the case of a timeshare association). For purposes of this section— The term “homeowners association” means an organization which is a condominium management association, a residential real estate management association, or a timeshare association if— 60 percent or more of the gross income of such organization for the taxable year consists solely of amounts received as membership dues, fees, or assessments from— The term “condominium management association” means any organization meeting the requirement of subparagraph (A) of paragraph (1) with respect to a condominium proj­ect substantially all of the units of which are used by individuals for residences. The term “residential real estate management association” means any organization meeting the requirements of subparagraph (A) of paragraph (1) with respect to a subdivision, development, or similar area substantially all the lots or buildings of which may only be used by individuals for residences. 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. The term “association property” means— For purposes of this section, the homeowners association taxable income of any organization for any taxable year is an amount equal to the excess (if any) of— For purposes of this subsection— For purposes of this subsection, the term “exempt function income” means any amount received as membership dues, fees, or assessments from—