# Tax on Washington WorldMark resorts



## cotraveller (Jul 1, 2014)

From the WorldMark web site:

_"Following a recent audit by the Washington State Department of Revenue, we’ve received notice that stays at our 10 WorldMark resorts located in Washington State are subject to a state lodging tax and WorldMark Seattle – The Camlin is also subject to a Convention and Trade Center tax, imposed by Seattle government.. . .  The rates vary based on unit size and resort location, and will be assessed on all credit and rental reservations that are confirmed or modified on or after July 1, 2014."_


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## Bill4728 (Jul 1, 2014)

I sure hope that WM appeals that ruling.


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## Steve (Jul 1, 2014)

This is not good news.  It sets a terrible precedent for other states.  WorldMark has been quite willing to accept occupancy taxes for many of the newer resorts, though, so I don't see them throwing too big of a fit over this.

Steve


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## PearlCity (Jul 1, 2014)

I don't see why WM would appeal that ruling.  Other states already do this. I'm surprised at how high the taxes are!


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## csxjohn (Jul 1, 2014)

PearlCity said:


> I don't see why WM would appeal that ruling.  Other states already do this. I'm surprised at how high the taxes are!



Other states charge you lodging taxes to stay in units you own?  I know HI does but I wasn't aware of others.


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## PearlCity (Jul 1, 2014)

csxjohn said:


> Other states charge you lodging taxes to stay in units you own?  I know HI does but I wasn't aware of others.


California had it in some counties. If you go to the world mark site with the tax info it lists all the resorts that charge the extra tax.


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## uscav8r (Jul 4, 2014)

PearlCity said:


> I don't see why WM would appeal that ruling.  Other states already do this. I'm surprised at how high the taxes are!



I could be mistaken, but I thought I had read somewhere that WM is on the hook financially for back taxes and penalties for all stays in the past ten years at a dozen-ish resorts. That is a hefty amount that will come out of current operating funds (they are not going to go back and charge the individual guests), and could have been a good reason to appeal. 

The tax rates for Washington are not so bad. Many of the California ones, especially off-the-beaten-path locations like Angels Camp and Marina Dunes, however, are outrageous. The rates kill any value of staying at those resorts. It is no wonder Angels Camp continually suffers from low occupancy rates and WM was forced to transfer four whole buildings of inventory to Wyndham as part of a lawsuit settlement (though this transfer was not directly related to this TOT discussion).


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## uscav8r (Jul 4, 2014)

csxjohn said:


> Other states charge you lodging taxes to stay in units you own?  I know HI does but I wasn't aware of others.


Some Oregon locations, mostly on the coast, do this as well. The thing to keep in mind is that Worldmark is a club, not direct-deeded ownership. Worldmark does have direct-deeded fixed-week ownership interests (called Residence Club) that do not exact TOT, even though Club units in the same resort do require TOT.


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## Steve (Jul 4, 2014)

Actually, at some of the locations where TOT is charged, Wyndham/Trendwest actually went to the local government and proposed a TOT in exchange for lower impact/development fees.  So, in some locations, we have our developer to thank for the TOT.

The situation in Washington, however, is much different.  I hate to see states decide that all timeshare owners and guests should be charged TOT.  This is not good for the industry.

Steve


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## Rent_Share (Jul 4, 2014)

After all the owners that "they represent as our elected management" company get to pay them forever, they just collect on behalf of the local governments


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