[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1350 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1350

  To amend the Internal Revenue Code of 1986 to allow associations of 
persons holding timeshare interests in residential property to elect to 
                  be taxed as homeowner associations.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 16, 1997

    Mr. Shaw (for himself, Mr. Ney, and Mr. Boehner) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to allow associations of 
persons holding timeshare interests in residential property to elect to 
                  be taxed as homeowner associations.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Homeowners Association Clarification 
Act of 1997''.

SEC. 2. ASSOCIATIONS OF HOLDERS OF TIMESHARE INTERESTS TO BE TAXED LIKE 
              OTHER HOMEOWNERS ASSOCIATIONS.

    (a) Timeshare Associations Included as Homeowner Associations.--
            (1) In general.--Paragraph (1) of section 528(c) of the 
        Internal Revenue Code of 1986 (defining homeowners association) 
        is amended--
                    (A) by striking ``or a residential real estate 
                management association'' and inserting ``, a 
                residential real estate management association, or a 
                timeshare association'' in the material preceding 
                subparagraph (A),
                    (B) by striking ``or'' at the end of clause (i) of 
                subparagraph (B), by striking the period at the end of 
                clause (ii) of subparagraph (B) and inserting ``, or'', 
                and by adding at the end of subparagraph (B) the 
                following new clause:
                            ``(iii) owners of timeshare rights to use, 
                        or timeshare ownership interests in, 
                        association property in the case of a timeshare 
                        association,'', and
                    (C) by inserting ``and, in the case of a timeshare 
                association, for activities provided to or on behalf of 
                members of the association'' before the comma at the 
                end of subparagraph (C).
            (2) Timeshare association defined.--Subsection (c) of 
        section 528 of such Code is amended by redesignating paragraph 
        (4) as paragraph (5) and by inserting after paragraph (3) the 
        following new paragraph:
            ``(4) Timeshare association.--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.''.
    (b) Exempt Function Income.--Paragraph (3) of section 528(d) of 
such Code is amended by striking ``or'' at the end of subparagraph (A), 
by striking the period at the end of subparagraph (B) and inserting ``, 
or'', and by adding at the end the following new subparagraph:
                    ``(C) owners of timeshare rights to use, or 
                timeshare ownership interests in, real property in the 
                case of a timeshare association.''.
    (c) Rate of Tax.--Subsection (b) of section 528 of such Code 
(relating to certain homeowners associations) is amended by inserting 
before the period ``(32 percent of such income in the case of a 
timeshare association)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1996.
                                 <all>