Timeshare Resales and Rentals Under Scrutiny in Florida March 18, 2009
Posted by Bryan Connelly in : ARDA, Customer Comments, General, News & Events, RCI , trackbackA new legislation in Florida would not only protect the comfort of timeshare owners, but the resort developers too. Though the legislation would mandate a bed tax on all timeshares rented out as a hotel room, it would exempt many other transactions from taxes.
Promotional night-stay packages and rentals made through an exchange company like RCI or Interval International are just some of the various exceptions covered under the bill. It has already seen overwhelming victory in two Florida House Committees and one in the Senate so far.
“It is important to our industry to have that in law. It provides comfort to our owners,†explains Jason Gamel, the vice president of state government affairs for the American Resort Development Association. Alongside individual timeshare companies, ARDA is backing this bill with great zeal.
Florida State Rep. Steve Precourt is sponsoring the legislation in the Florida House to protect the state by not discouraging tourism with unnecessary taxes placed on the consumer. “With the importance of keeping tourism flowing into our state, we do not want our owners to pay any more tax.â€
The legislation would ensure that timeshare units rented trough exchange companies are not subject to bed taxes, as long as the guest is not paying any money to that unit’s owner. It would also ensure that taxes are not collected on the annual membership fees, which ARDA representatives say are approximately $100 a year.
Comments»
Legislation to NOT TAX the exchange co.s rentals and tax a week owner’s rental customer? That is proposterous! Have the exchange co. pay a bed a tax to the state not the owner! Let the owner compete without having to charge a tax to someone that they rent their own week out to. That is what is more right! If this is passed it would be a detriment to the owner having to charge more with the tax payable and thus lose rental value. Renting it out w/tax by the owner and the I.I. or RCI etc. exchange co’s of the world rent it out w/o tax is a monopolizing strategy. Does anyone care? Our owner voices will be heard on this one!