# Push for New Accommodations TAX on Maintenance Fees For Those Who Own SC Timeshare



## Becky (Sep 12, 2010)

I am not certain where to post this or if it has already been mentioned on Tug, but yesterday there was an article in The Sun News of Myrtle Beach titled "Tax Plan Ticks Off Timeshare Sector in South Carolina". It is about a proposed plan presented to TRAC or South Carolina Tax Realignment Commission for debate next week and a Public Hearing in Columbia. TRAC will make recommendations to the Senate and House in 2011 for changes to the tax system in South Carolina.

There is a smaller article today in the Charleston Post and Courier titled "Panel to Consider Levy on Timeshares".


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## MULTIZ321 (Sep 12, 2010)

Tax Plan Ticks Off Time Share Sector in South Carolina - from TheSunNews.com

Richard


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## MULTIZ321 (Sep 12, 2010)

Panel to Consider Levy on Timeshares - from ThePostandCourier.com

Scroll down to to see the news brief


Richard


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## Goofyhobbie (Sep 12, 2010)

Dad Blame It!  What in the world are they thinking?

If this were to become widely known - *WHICH IT WILL NOT! *- such action could have the effect of driving timeshare development away from South Carolina.  The result, if it became widely known, could mean a public relations nightmare for South Carolina which benefits greatly from the real estate taxes generated because developers make the investment and sell so many units within the State of South Carolina.

It is highly unlikely that many timeshare owners who reside in South Carolina will hear about this and those that do will probably not take the time to protest. What a shame!

Meanwhile, literally hundreds of thousands of others who live out of the State of South Carolina will be paying the unfair tax and they unfortunately cannot fight it! 

Such a tax should be considered double taxation of owners who already have to pay their fair share of the real estate taxes levied against timeshare resort real estate.


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## Carolinian (Sep 13, 2010)

This really stinks.

ARDA should set up a state PAC in South Carolina.  They should let the legislators know that they have thousands of timeshare members in the state and they will all be getting mailings to vote against any legislator who votes for such a bill.  It is things like this that politicians understand.  There are a lot more votes represented by timeshare owners than by hotel owners.


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## Fredm (Sep 13, 2010)

Yep, it sucks! 

SC is not alone. Hawaii does it *AND* imposes a 5% excise tax on the entire HOA fee. *And* imposes a tax rate 700% higher than resident owner occupied dwellings.


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## jarta (Sep 13, 2010)

Fredm is correct.  This tax on is not a novel idea.  

Hawaii does it and its Transient Accommodations Tax (TAT) has adversely affected the value of timeshares in Hawaii.

Both hotels and timeshares pay the Hawaii TAT.  In SC, only hotels now pay.  Times are tough.  Out-of-State visitors are a generally defenseless target of taxation.   ...   eom


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## Tia (Sep 13, 2010)

The USVI gov is trying to raise property taxes on timeshare owners creating a new level of taxation much higher then any other property. It values timeshare property much higher then even wholly owned 2 br condos in the same bldg.  

 Right now they are being held up in court, had to reissue 2006 taxes at the old rate, they are always behind in years downt here. ARDA was apparently negotiating with them, however they favor developers so not as interested in weeks owners tax problems down the road. There is a lawsuit filed by a couple ts weeks owners coming up.


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## rickandcindy23 (Sep 13, 2010)

This is just wrong.  Other states have tried it, including Colorado, but nothing came of it.  So let's hope it gets dropped in South Carolina, too. 

I think Hawaii's success (specifically Maui) has really caused many states to look to timeshare owners as a new means of sales tax income.  Maui really dislikes timeshare, and the mayor actually said we "are not the type of visitor" he wants on Maui.  So they tax us to the hilt, as Fred said.  

We spend less on activities now, and it's not to get them back for their attitude toward timeshare owners, it's because _we have less extra cash for the activities_.  So Maui residents lose, and we aren't the only ones who feel that way, either.


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## Makai Guy (Sep 13, 2010)

I have sent the following message to the SC State Representative and Senator representing my district.  I strongly urge any other SC residents to do the same.  For greatest effect, it is probably best not to just copy/paste, but to paraphrase in your own words.


> Dear _____________,
> 
> On September 17 the South Carolina Tax Realignment Commission is meeting to discuss a proposed tax on timeshare maintenance fees.
> 
> ...



Locate your legislators:
http://www.scstatehouse.gov/cgi-bin/zipcodesearch.exe


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## Goofyhobbie (Sep 13, 2010)

*E-Mail To ARDA*

ARDA-ROC (Resort Owners Coalition) is a lobbying group that is supposed to fight on our behalf against legislation such as the legislation being pushed in South Carolina.  Those of you who want to may contact that group to get their attention and help in fighting against this onerous tax. 

Here is the text of an e-mail that I sent to the webmaster@arda.org:



> *Subject: **Push for New Accommodations TAX on Maintenance Fees For Those Who Own SC Timeshare *
> 
> To:  ARDA Webmaster
> 
> ...


If any of you know how to contact any of the individuals listed below it may not hurt to alert them also:

*ARDA's  State Legislative Committee 2009-2010 *

*Chairman:*
Mike W. Andrew, Jr.
Marriott Vacation Club International

Thomas A. Bell
Interval International

Thomas G. Bennett
Ballard Spahr  LLP

Robert E. Dady
Fieldstone Lester Shear & Denberg

Karen D. Dennison, Esq.
Holland and Hart

Landon R. Estep
Vacation Resorts International

David J. Evans
Group RCI

W. John Funk
Gallagher, Callahan & Gartrell

Bill Guthrie
Foley & Lardner

Deb Linden
Island One Resorts

Kurt Gruber
Baker Hostetler, LLP

Eric Gummers
Howard Kennedy Solicitors

David W. Kreutzberg
Squire Sanders & Dempsey

Brian T. Lower
Holiday Inn Club Vacations

Leonard Lubart
Greenspoon, Marder

Andrew T. Marcus
Tempus Resorts

Rhonda S. Marx
Four Seasons Hotels and Resorts

Leigh Anne Nieman
Disney Vacation Development Inc.

Anthony Polvino
Weinstock & Scavo, PC

Stratis Pridgeon
Wyndham Vacation Ownership, Inc.

Rebecca Sloan
Hilton Grand Vacations

Allan Starr
Starr Associates LLP

Robin Suarez
Starwood Vacation Ownership Inc.

Michael Kaminer
Bluegreen Corporation

D. Scott Turner
Cox Castle & Nicholson

Tobias A. Weas
Festiva Hospitality Group

Mel S. Weinberger
Holland & Knight

Past Chair:
Mitchell A. Imanaka
Imanaka Kudo & Fujimoto 

Legislative Council Chairman:
Robert J. Webb, Chairman
Baker & Hostetler LLP

ARDA-ROC Chairman:
Ken McKelvey RRP
Defender Resorts


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## kangyuta3 (Sep 14, 2010)

*Moderator Note: * This post and any like it will be deleted as a violation of TUG posting rules.


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## bullroc3 (Sep 14, 2010)

*Thanks*

Thank you for bringing this to my attention. I have sent e-mails to the South Carolina Senator and Representative for my area.

Everybody seems to be scrambling for the money in my pockets and I'm tired of it.


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## dioxide45 (Sep 17, 2010)

This isn't necessarily a double taxation on top of the property taxes, but rather a double taxation on top of taxes currently paid when that MF money is spent by the HOA. The HOA would pay sales tax on items purchased for us (cleaning supplies, office supplies). They would also pay payroll taxes for the resort staff. So it is still a tax on a tax, just not a tax on top of property taxes.


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## phoenix911 (Sep 18, 2010)

*Taxation without Representation!*

I totally agree with all of you!.  This is an unfair tax... and it appears to be double taxation....I already pay a high enough MF's and I thought those fees were supposed to be used to cover fixtures, improvements, etc. ... In VA businesses have to pay a local Business and Occupational Tax and a Machinery and Tools tax annually.  the M&T tax is placed on all appreciable and depriciable assets... so  it seems to me that my MF is already indirectly paying enough of the localities taxes without adding another tax on top of those already being paid.


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## pedro47 (Sep 18, 2010)

Wow !! This tax could bring in million of new dollars to a state.


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## carl2591 (Sep 21, 2010)

any news on what happened at the meeting.??


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## Goofyhobbie (Sep 21, 2010)

Carl,

The Meeting for September 17th appears to have been cancelled.


Hopefully someone from South Carolina can give all an update.

Meanwhile here is a link where I discovered the cancellation.

South Carolina Legislature Online Site


Cancelled or not, it appears that the issue is still being considered so TUG Members in South Carolina should stay viligant and contact their legislators to get this stopped.


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## timesharegirl (Sep 26, 2010)

I have only posted a time or two on here.. I work in the media sector of the timeshare industry. I expressed in my last post on a different thread that I would happily keep the group updated if anyone was interested, but everyone was only interested in being angry about that $3 to $5 per year they were paying to ARDA at the time. I recieved no responses of interest for keeping everyone updated through my sources... but... now I see this thread.   

Last week I attended an ARDA conference in Myrtle Beach and spoke with Chris Stewart of the ARDA legislative committee. They indeed are working hard to fight this tax. The big fear in ARDA is that if it goes through, then it will most likely set a precedence throughout the remaining states. ARDA is spending alot of time and money to fight this issue and will carry it to end if needed. 

I offer again to keep the group updated on where their annual $3 to $5 goes during this South Carolina issue... if interested. But I have to say first that ARDA-ROC and ARDA-PAC does not need a pile of angry screaming letters, but instead, a show of support and gratitude for them fighting this issue so diligently. Right now, ARDA is the only friend that the timeshare owner has in South Carolina.   The main culprit in all of this is the hoteliers in Myrtle Beach. They are the ones who are trying to propose and push this through.. in particular, it is one main hotel owner who is leading their fight. I would happily share his name if anyone is interested. 

What Myrtle Beach hotel owners are failing to recognize is how much money ARDA has given to their local chapters in the years. The tourism board, Chamber of Commerce, needs to be reminded of the increased tourism revenue that is brought to the area from timeshare owners. Please help ARDAROC and ARDAPAC by addressing your complaints towards the Chamber of Commerce and hotel owners directly in the area. Also, if this tax goes through then revenue that previously went through the local government to support Myrtle Beach will actually be spread thinly throughout the entire state. Basically, the tax would increase road revenues, school revenues, etc everywhere in the state except Myrtle Beach and would therefore remove a huge revenue stream that the area now enjoys to keep Myrtles beaches clean and updated. This tax would not only devastate the timeshare community, but the community as a whole. 

This entire issue has been raised and stirred up by one hotel owner who just, well, he just doesnt like timeshare developers. His angry actions are a slap in your face, the timeshare owner... and ARDA is doing everything in its power to fight him.


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## jerseygirl (Sep 26, 2010)

Sorry, timesharegirl, but if ARDA is working on it it's because the developers don't like the tax either.  Occassionally, the developers and the owners are on the same side!

Show me an instance where ARDA supported something NOT in the developers best interest, and maybe I will consider including my $3-$5.


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## rickandcindy23 (Sep 26, 2010)

How would paying more taxes that are "thinly" spread through the state going to make beaches less clean.  I need a bit more explanation on that one.  I will write letters to whomever will listen.


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## Goofyhobbie (Sep 26, 2010)

*FYI*

[Included in the] "Changes Proposed by Tourism Industry to the South Carolina Tax Realignment Commission Local Accommodations & Hospitality Tax Sub-Committee on September 8, 2010":

*[See:]*  Proposed Changes to State-mandated 2% Accommodations Tax

[Number five of five Proposed Changes:]

5. Recommend adding language in Section 12-36-920 A to include collection of State-mandated Accommodations Tax, Locally imposed Accommodations Tax and Local Hospitality Taxes and Fees … “on timeshare maintenance fee.”

[For Comparison: Here is a Link to the current SC LAW (once you go to the Link scroll down to the current language in *SC Code Section 12-36-920 A * http://www.scstatehouse.gov/code/t12c036.htm  ]




> [The Proposed] Impact [of the Recommended Change] [to SC Code Section: 12-36-920 A:]
> 
> A. This change would “level the field” of competition between traditional hotel/motel/B&B properties and the Timeshare industry, which now enjoys an unfair advantage in the market.
> 
> B. In 09-10 terms, this is estimated to increase SC Tax Revenues by approximately $10 M.


________________________________________________________________

The above information with my comments provided between brackets was found on Page Eight of a Ten Page PDF file which is  available here:

SC State House.gov/Citizens Interest Page /TRAC/ September 10, 2010 /
Meeting Task Force Recommendations


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## dioxide45 (Sep 26, 2010)

Do you pay a sales tax when you buy a timeshare from the developer?


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## Goofyhobbie (Sep 26, 2010)

Vacation Ownership Interest or Timeshare sold by a Developer is usually sold as Real Estate. When sold as Real Estate there would be no Sales Tax.


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## wptamo (Sep 27, 2010)

Just adding my 2 cents in... I live in Ontario Canada where the provincial government(without mandate) merged provincial tax with the  country wide gst. They call it HST. Now the cost of my timeshare in province went up 8%!! (A tax of $75 this year instead of $27) What a rip off. As a result I am seriously considering dumping it for another one stateside where they don't do that kind of taxation undemocratically... or do they?? Yikes...  I hope it doesn't pass as I do have TS's in SC...  perhaps I should consider my next TS purchase in Fla not SC? 

(PS I held back my opinion on our local gvt & taxation without representation)

But the reality of it would be I dump the TS, the local economy doesn't get my MF, and my vacation spending, and the govt doesn’t get it's 8%. 

Could higher taxes drive out TS'd owners from SC to a state with no taxes?
I hope they consider that...

just my humble opinion on the matter.

wpt.


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## Dave M (Sep 27, 2010)

jerseygirl said:


> Show me an instance where ARDA supported something NOT in the developers best interest, and maybe I will consider including my $3-$5.


ARDA is a timeshare consumer supporter in addition to being a lobbying arm of the timeshare industry. Perhaps most importantly, ARDA was instrumental in lobbying for many of the timeshare laws that in almost every state protect us as consumers (e.g., with purchase recision rights) and that establishd industry restrictions that make it more difficult for unsavory timeshare developers to exist. 

As for some specific activities of ARDA that have significantly helped consumers, here are some examples that I posted here two years ago, including a different version of the currently proposed SC tax:





> ARDA has been instrumental many times in lobbying successfully for and against (depending on the issue) legislation and tax assessors' administrative decisions with resulting positive impact for timeshare owners. Many of those lobbying efforts have been reported here on TUG.
> 
> A sampling of ARDA's recent successful efforts:
> 
> ...


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## jerseygirl (Sep 27, 2010)

Dave - thanks for the info.  The examples you posted are all about taxes and I can't help but believe those go to the interest of the developers as well.  But, I did not know that they were responsible for the recession laws, and fully agree that those benefit the consumers, so I stand corrected on that point.  I'm sure they're not a bad organization, but I do believe their larger loyalty is to the developers and therefore do not support them like I would an organization that is 100% focused on consumers' rights.  Just my opinion ...


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