WKORV-N&S Emergency Assessment [Retroactive Taxes]

[Storm'in]

Starwood/Vistana has done too little, too late.

Originally, our "infrastructure" tax increase was returned to the owner's association but, instead of sending out refund checks or crediting it to the next annual fee, they chose to pocket it into their reserve fund for future use. According to their fourth paragraph, that fund isn't accessible.
Now, once again, we pay. When that is (presumably) eventually returned to the owner's association, will they pocket it again?

Both Vistana and the owner's association do not deserve mercy.
I highly suggest all owner's hit Vistana/owner's association and the County of Maui where it hurts - boycott Maui! Owner's (and the discretionary spending they bring to the Maui economy) need to be missed. Take your ownership use elsewhere or at the very least, work together everyone to abstain from visiting the island for 2-4 weeks simultaneously every year, unknown to your resort and therefore incapable of being planned for.

It's very simple - Maui doesn't want time-share owner's and the company/corporation/developer only cares about the immediate sale. Neither receive your loyalty. Stop the complaining and act. It was an investment that no longer floats. Stick with it the way you are and you'll drown with it.

 

[DeniseM]

Please clarify what you mean by these statements:

Originally, our "infrastructure" tax increase was returned to the owner's association but, instead of sending out refund checks or crediting it to the next annual fee, they chose to pocket it into their reserve fund for future use. According to their fourth paragraph, that fund isn't accessible.
Now, once again, we pay. When that is (presumably) eventually returned to the owner's association, will they pocket it again?

 

[Storm'in]

Prior to 2005, time-shares on Maui were (property tax) classified as a resort/hotel. The rate was $8.30 per $1000 assessed value while the homeowner resident was assessed at $3.55/$1000.

In November, 2004, the Maui Mayor and County Council decided to reclassify time-shares into their own tax classification. This was due to their belief that time-shares created an unusual burden on the infrastructure of the island, specifically roads and the water/sewer system. Conjointly, Maui government also wanted to lessen or eliminate time-share development so they decided to create their own burdening system upon the owners and developers. On Jan. 1, 2005 this classification took effect. This would have been the approximate time that time-share annual fees shot up significantly, away from their usual trend.

AFTER the reclassification, Maui County commissioned a $75,000 study with Hospitality Advisors LLC, in collaboration with the University of Hawaii School of Travel Industry to examine the effects of time-shares on the infrastructure. The study, completed by June, 2006, concluded that time-shares exerted no greater effect than resorts and hotels upon the infrastructure. Maui apparently chose to disregard their paid findings that DIDN'T support their decision and kept the classification (and the money it would bring). In fiscal year 2006, time-shares were assessed $14.00/$1000, resorts and hotels $8.20/$1000 and the homeowner resident $2.50/$1000. Summarily, time-share owners were paying greater than 400% more than the resident and 65% more than the resort/hotel visitor.

Keep in mind, Starwood NEVER disclosed this information to current owners at the time. All they stated as I recall, in a letter, was that the owner would be paying more to support island infrastructure and that they were in the process of protesting it.

After several years of paying this premium, Starwood/Owner's Association informed owners by letter that they had prevailed against the County of Maui and recouped the monies. They stated they would be placing them into a reserve fund and specifically mentioned that one use for them would be for more energy-efficient lighting. The Owner's Association apparently felt entitled to the funds for whatever purpose they chose, rather than to refund the monies or at least credit them back to owners for their following annual fee.

Now, it seems, something similar if not identical is about to recur. Maui has decided to retaliate and reassess years 2006, 2007 and 2008 since these resorts, listed in the latest filed lawsuit, were only assessed as time-shares, not as condominiums as well (double taxation?). Receiving $2.1-$2.5 MILLION per year for each of those three years should have been ˜$5 MILLION each year. That's the basis for the special assessment that, presumably, at some point in the future, will be returned to the Owner's Association so they can place it back into a protected reserve account for capital plans only (as mentioned in the fourth paragraph of their letter to owners this past June).

The cycle keeps repeating itself, forcing owners to ante up everytime Maui decides to penalize time-shares.

 

[DeniseM]

[Clarification - the OP edited post #3 with more info. after I posted.]

I'm sorry, but re-posting your first post, does not explain what you mean.

Here is the 4th paragraph of the letter - stating that Westin is "pocketing" anything is an inaccurate interpretation of the letter. The paragraph explains why other sources of funding to pay the taxes are not available:

There are very few alternatives available to the Association to fund the huge budgetary deficit created by this current tax assessment. The Association is unable to use funds set aside in its replacement reserve account as reserve funds are restricted by law and are to be used only for items within our capital reserve plan.

The Association is unable to borrow the funds as its ability to borrow is limited and its line of credit is much less than the tax bill. Unfortunately, the only viable option to pay the tax bill and fund the corresponding large budgetary deficit is to levy an emergency special assessment on all Owners.

Also - You are rather late to the party - this happened 5 mos. ago.

 

[DavidnRobin]

DeniseM - we do appreciate you - even though we do not express it often...

 

[DeniseM]

DeniseM - we do appreciate you - even though we do not express it often...

Thank you! That is so nice!

 

[Scott&Laura]

In reading the case I do not see it as Maui against Corporations.


What I see is MAUI County needing money that used a cost to valuation rather than a market value to valuation in assessing taxes. MAUI wants to recoup money from the error and says their error should to correct should not be denied as The developer is sophisticated and wants to take advantage of MAUI County's error.


Every year we have an opportunity to contribute to a fund that keeps track of and investigates and looks out for our interests. It is on annual fees but an optional fee. I would say this shows why to donate to the fund.

MAUI needs money and at the end of the day no matter what there are only so many payers and the pie is a defined size. SO they can raise valuations taxes are based on or they can out right increase the the tax and keep valuations low--in any event the total amount is needed for MAUI to function. Its Government that has a popular Island and if they raise Hotel taxes they chase tourists away so they tax timeshares were they are assured the owners come back every year.


Scott

 

[dss]

Just curious if anyone was aware of any movement on this? During our owners update last week, the sales rep said that the tax decision was reversed in our favor and we would be receiving a refund shortly. I find this hard to believe (and couldn't turn up anything with a quick search), but was hoping maybe someone here had good news??

 

[DeniseM]

3 little words: Sales Reps Lie