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Taxes on LC and EV -- Ripoff or What?

SBK

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FYI -- I just posted the information below on the RCI Forum with a plea that Tuggers respond here, not there. I want an answer from Madge as soon as possible and I am hoping that it doesn't get bumped.

I am so curious what the rest of you have found in terms of the taxes.

sbk

Here is what I posted on RCI:

I think we may have been ripped off.

Last year we received a free Last Call vacation for extending our RCI membership for three years. Yesterday I used it to get a Last Call for $219.00 for the Summitt at Massanutten.

After stumbling around for more than 20 minutes (he said he didn't know how to do the transaction and had to talk to two supervisors), the VG finally confirmed the LC and annnounced that we owed $52.16 in tax on the transaction. I hit the roof, but I was pretty well worn down by then -- and I needed the vaction far more than when I had started the call.

He finally said that, because we had received the LC before the tax went into effect, he would charge me on our Master Card, then credit our RCI account that amount to use on our next transaction. Again, I was worn down and did not have the energy to try to get him to understand the illogic of charging us for something we didn't owe, then crediting it back to us.

Questions:

The $52.16 represents a supposed tax of 23.82%. I called Massanutten reservations -- they told me that the lodging tax is 7%!!!!! That is SEVEN PERCENT!!!! Why on earth were we charged 23.82%???? What possible justification could you have?

If I should not have had to pay the tax because you gave me the LC before the tax requirement was imposed, why do you have the right to hold our money hostage until we decide to make another excange or LC?
 
Last edited:

Jya-Ning

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It is 7% of 745. Which is very likely the assessed rent rate on that area for 7 day stay.

Depends on how they treat LC and EV, if the local government wants to make they as rental, that probably will be the tax someone has to pay.

Jya-Ning
 

SBK

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When we get a AAA discount on a hotel room, we only pay tax on what we actually pay. If Macy's put's a dress on clearance because it did not sell at full price, I only pay tax on what I actually pay.

If that is their (il)logic, it doesn't make sense to me.
 

lawren2

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I don't recall paying taxes on the Last Calls I booked last summer...
 

SBK

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lawren2 said:
I don't recall paying taxes on the Last Calls I booked last summer...

Taxes are effective March 1.
 

lawren2

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SBK said:
Taxes are effective March 1.


Nice trick!

so with the new pricing and the Guest Certificate fee and now the taxes, is it a wonder that we are feeling abused?
 

bellesgirl

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Just for the heck of it, I tried confirming a EV for Massanutten and I did not see where they were charging any tax. Is it baked into the price? Does it make a difference if you are doing it online?
 

SBK

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bellesgirl said:
Just for the heck of it, I tried confirming a EV for Massanutten and I did not see where they were charging any tax. Is it baked into the price? Does it make a difference if you are doing it online?

I cannot answer if it was an online or offline difference. I had to book offline because I was redeeming the LC we received for renewing our membership. It came with a restriction that it could only be booked offline.

From Madge in the RCI Forum:

"Currently, taxes are applied only to Extra Vacations. However, there is legislation being proposed in Wisconsin that would indeed impose a tax on exchange guests visiting that state."
 
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