Timeshare Resort Extra Charges

[Tamaradarann]

Yes to both.

This is a quote from a previous post and some comments:

"As far as the State of Hawaii TAT(Transient Accomodation Tax), I know that is NOT a timeshare exclusive charge that the resorts charge, but it is a charge that you need to pay when staying at a timeshare that you OWN!"

We love Hawaii and live there now but I have problems with the TAT on timeshares since owners already pay property taxes on unit so that you are getting taxed as a owner of the unit and the occupyer of the unit is getting taxed as a transient. When we stayed in Maui in September we were charged almost $30/night in TAT. That certainly made me think about using my points in Las Vegas, the 9th island, rather than one the the Hawaiian Islands that charge a TAT.

I also have a problem with the Hawaii GET tax since it taxes unprepared supermarket food. That is a tax that burdens the poor living in Hawaii who are struggling to just buy food to eat at home, not at restaurants, food trucks or take out places.

 

[sponger76]

This is a quote from a previous post and some comments:

"As far as the State of Hawaii TAT(Transient Accomodation Tax), I know that is NOT a timeshare exclusive charge that the resorts charge, but it is a charge that you need to pay when staying at a timeshare that you OWN!"

We love Hawaii and live there now but I have problems with the TAT on timeshares since owners already pay property taxes on unit so that you are getting taxed as a owner of the unit and the occupyer of the unit is getting taxed as a transient. When we stayed in Maui in September we were charged almost $30/night in TAT. That certainly made me think about using my points in Las Vegas, the 9th island, rather than one the the Hawaiian Islands that charge a TAT.

I also have a problem with the Hawaii GET tax since it taxes unprepared supermarket food. That is a tax that burdens the poor living in Hawaii who are struggling to just buy food to eat at home, not at restaurants, food trucks or take out places.

Those are all issues that are due to Hawaii laws and politics, and not any of the timeshare companies themselves. I don't think Hawaii politicians will care if you go to Vegas or somewhere else instead, as they know there's plenty of visitor demand from others willing to take your place. If you want change to the tax structure in Hawaii, the tax-happy folks would need to be voted out of office and replaced with politicians who are more tax-averse. Or you'd need to convince a huge amount of people to visit other locations, for a long period of time, enough to significantly impact state and county tax revenues, and those going elsewhere have to make it consistently known to the State that taxes are why they are staying away. While I'm sympathetic to your point of view, I don't think either is going to happen any time soon.

 

[BJRSanDiego]

Yes to both.

Thanks for the feedback. I have reason to wonder if it is always true that an owner at their own home resort in Hawaii (specifically Maui) has to pay the TAT. I know of at least two cases where that was not true. I'm wondering if the home resort of that owner is in violation of the Hawaii law or whether there might be exceptions.

 

[Tamaradarann]

Those are all issues that are due to Hawaii laws and politics, and not any of the timeshare companies themselves. I don't think Hawaii politicians will care if you go to Vegas or somewhere else instead, as they know there's plenty of visitor demand from others willing to take your place. If you want change to the tax structure in Hawaii, the tax-happy folks would need to be voted out of office and replaced with politicians who are more tax-averse. Or you'd need to convince a huge amount of people to visit other locations, for a long period of time, enough to significantly impact state and county tax revenues, and those going elsewhere have to make it consistently known to the State that taxes are why they are staying away. While I'm sympathetic to your point of view, I don't think either is going to happen any time soon.

I totally agree that these are Hawaii Laws and not timeshare companies themselves. When I sit back and look at how things are sometimes I can agree and see the logically reasoning and sometimes I disagree. I will continue to speak out against what I disagree with for my own satisfaction and perhaps others will spread the word and things can change. I will give you an unrelated Federal Income Tax example that I disagree with. I disagree with the step up in basis to determine the tax on capital gains when someone dies. The capital gains were realized on the property, why should they go away because some passes away?

 

[sponger76]

Thanks for the feedback. I have reason to wonder if it is always true that an owner at their own home resort in Hawaii (specifically Maui) has to pay the TAT. I know of at least two cases where that was not true. I'm wondering if the home resort of that owner is in violation of the Hawaii law or whether there might be exceptions.

Not aware of any exceptions in the law, so most likely the resort is in violation. Basically, the law says that the tax is a percentage of the underlying maintenance fee for the unit, pro-rated based on the number of nights the unit is occupied. So even if using points and only staying x nights, the resort is supposed to take a week's MFs for that unit, multiply it by whatever the tax rate is, and the occupant pays x/7 of that. For lock-offs, they prorate the amount of the MFs applicable to each side. The only way that tax would be $0 is if the underlying week's MFs are $0, and we all know that doesn't happen.