Question about TS stay taxes

[brianfox]

This Q just came to me out of the blue. Just popped into my head.

When someone pays taxes (i.e. occupancy tax) at the end of their TS stay, on what basis is it calculated? For instance, I stay at Ko Olina as an owner, and pay $xx.xx per day tax. But it's the same amount that a renter would pay whether the week was rented for $1000 or $4000, since Marriott has no knowledge of the rent transaction. I assume an II exchange would pay the same as well.

So on what basis does Marriott calculate percentage-based taxes? Based on Maintenance Fees? Rack rate? Something else?

(How can I prevent these random idle thoughts in the future?)

 

[aland0524]

I believe it's based on the maintenance fee which is a function of the unit size. For Hawaii, there is a Transient Accommodation Tax which is based on the "daily fair market value of the rental". Here's a link if you want to slog through the arithmetic: http://files.hawaii.gov/tax/legal/brochures/tat_brochure.pdf . As most Redweek postings for MOC will indicate: "Rentals are subject to an additional occupancy tax that vary by unit size. The fee is approximately as follows: Studio: $2/night, One-bedroom: $18/night, Two-bedroom: $19/night, Master Suite: $22/Night and Three-bedroom: $23/night." As to how to prevent these random idle thoughts in the future...single malt scotch!

 

[dagger1]

“As to how to prevent these random idle thoughts in the future...single malt scotch!”

Agreed and agreed again! And again!!!

 

[pedro47]

aland0524, thanks, I feel that your explantation was much clearer than reading that brochure. IMHO.

 

[brianfox]

Thanks Alan.
I'll have to try the scotch. My Marriott rep tells me buying Bonvoy points is the way to go. Either way, I have a feeling I'd wake up sick the next day.

 

[tugcccsp]

There are three taxes due for Maui:
1) Time Share Occupancy tax (TSO), collected by the resort from the tenant and sent to the tax commission by the resort (Marriott identifies this as VOCC on the bill). It is calculated based on items in the maintenance fees. I don’t know the exact formula. It shows up as a daily charge on occupancy.
2) Transient Accommodations Tax (TAT), 10.25% of the gross rental proceeds collected by the deeded owner of the rental unit, condominium, or house, and paid by the owner to the taxing authority.
3) General Excise Tax (GET), 4.167% of the gross rental proceeds collected by the deeded owner of the rental unit, condominium, or house, and paid by the owner to the taxing authority.
I think some owners don’t collect and pay the TAT and GET. The possible consequences according to the State of Hawaii of non-payment are very costly penalties.