According to The American Resort Development Association or ARDA, a recent passage of legislation by Florida’s state legislature ensures that important protections for timeshare owners and those who are selling their timeshares are in place. The bill HB 61 also codifies a common industry practice regarding the taxation of transient stays at timeshare resorts. It also allows timeshare developers to offer “Debt-Cancellation” products to purchasers.
It has become an increasing concern as state and local governments seek new revenue to fill the ever growing budget shortfalls although no state or jurisdiction currently collects a tax on timeshare exchange. One of the major attractions for timeshare buyers in recent years, Florida becomes the third state to pass legislation specifically protecting timeshare owners, particularly from taxes on exchange. Moreover, HB 61 protects the competitive position of Florida timeshares and the ability of Florida timeshare owners to effectively use the exchange process by preventing taxes that could raise the cost and lower the desirability of exchanges into the state.
ARDA, together with its Resort Owner’s Coalition, has advocated for state legislation guaranteeing that timeshare owners are protected from such taxes.
This HB 61 also cleared the way for timeshare developers to offer “Debt Cancellation” products. These arrangements would allow purchasers to return a timeshare to the developer if the individual losses a job or an occurrence of other specified events. This ensures that timeshare owners availing of the program will not experience negative impact on his consumer’s credit score. The legislation also represents the tax status of transient stays at timeshare properties. The common industry practice in such cases has been to remit tax in the same manner as a traditional hotel, but a recent court decision in South Florida called into question the taxability of these business transactions. With HB 61, the tax statutes of Florida can be updated to clarify that transient stays are taxable codifying the long-time practice.
It has become an increasing concern as state and local governments seek new revenue to fill the ever growing budget shortfalls although no state or jurisdiction currently collects a tax on timeshare exchange. One of the major attractions for timeshare buyers in recent years, Florida becomes the third state to pass legislation specifically protecting timeshare owners, particularly from taxes on exchange. Moreover, HB 61 protects the competitive position of Florida timeshares and the ability of Florida timeshare owners to effectively use the exchange process by preventing taxes that could raise the cost and lower the desirability of exchanges into the state.
ARDA, together with its Resort Owner’s Coalition, has advocated for state legislation guaranteeing that timeshare owners are protected from such taxes.
This HB 61 also cleared the way for timeshare developers to offer “Debt Cancellation” products. These arrangements would allow purchasers to return a timeshare to the developer if the individual losses a job or an occurrence of other specified events. This ensures that timeshare owners availing of the program will not experience negative impact on his consumer’s credit score. The legislation also represents the tax status of transient stays at timeshare properties. The common industry practice in such cases has been to remit tax in the same manner as a traditional hotel, but a recent court decision in South Florida called into question the taxability of these business transactions. With HB 61, the tax statutes of Florida can be updated to clarify that transient stays are taxable codifying the long-time practice.
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