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Idea Fair

MPOA/Club Merger

Description

During the last couple years, the Club started exploring the merger between the Club and the Master Property Association. The merger officially took place at the end of December 2018. The merger of the entities resulted in tax cost savings to the residents of the community and to the Club. Sales taxes were either eliminated or reduced from Members' dues and ad valorem taxes imposed by the county to the Club were eradicated. Each of these resulted in cost savings to Members this year and will result in increased savings in future years. Additional cost savings will be evident through the synergies recognized between the combined entities through administration and contract renewals going forward.

Implementation

Many hours of review and legal advice took place prior to the presentation of this merger to the membership. The membership was then asked and encouraged to vote on the merger in the interest of cost savings through the avenues mentioned. The membership overwhelmingly voted to approve the merger and after additional legal review and documentation, the merger was culminated. This year was the first time that Members received some savings based on the tax structure. Members will see additional savings in years to come, which will be a positive factor in their club fees and real estate property values.

About the author

Michael McCarthy

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