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USVI proposing $30/day tax on timeshares

Discussion in 'Caribbean Timesharing' started by SandyPGravel, Jan 27, 2017.

  1. DavidnRobin

    DavidnRobin TUG Member

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    I was referring to the fact that the USVI Gov't does not provide the NPS workers with compensation or benefits - as it pertained to the USVI debt.
    If you want to tangent this into the USVI Gov't expenditures - you are preaching to the choir.

    However, there is plenty of blame to go around for this debt (suggest to watch JO segment around minute 7... and especially at 9:15) more than just USVI mismanagement and corruption - predatory fund managers, lack of regulations or oversight, and Politicians/Politics - for example...
     
    Last edited: Feb 12, 2017
  2. jimf41

    jimf41 TUG Member

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    The tax, if enacted, will not affect deeded owners that pay property tax directly to the USVI. It's aimed at renters and exchangers. I'm unsure how it will affect trust point owners or enrolled owners using DP points. According to the administration at the resort they are not clear how they are supposed to collect it if it is enacted. This is only one tax proposed by the current Governor. He also wants to raise the tax on "sin" items, port fees on cruise ships and possibly a sales tax.

    The proposals are very unpopular with the local taxpayers and merchants. A few days ago about local 300 folks staged a protest in downtown CA. Evidently this was an unprecedented event down here. What the legislators don't seem to get is that the Cruise ship operators will just go to a different island if the USVI gets too expensive. If that happens in a significant way the USVI is toast. The entire economy is based on tourism.

    A lot of the revenue generated here is from cash purchases. The government has to come up with a way to tap into that as I'm quite sure that every taxi fare does not get reported to the IRS. All federal income tax collected here stays in the USVI. From what I've gathered from the local folks the current Governor and his administration are very unpopular here. I don't expect the tax as it's currently proposed to pass.
     
  3. amanda14

    amanda14 Pool Education Team Member TUG Member

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    Said it before and will say it again, this site is the best. That's a pretty steep levy and a number that needs to be factored when looking to vacation in the USVI.
     
  4. DavidnRobin

    DavidnRobin TUG Member

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    Where did you read this? From the text that I saw - it was a tax specifically placed on Timeshare users.
    As you mentioned - how would they differentiate?
     
  5. Sandy VDH

    Sandy VDH TUG Review Crew: Expert TUG Member

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    yes, but renters and exchanges can only obtain it by getting it from an owner who has already paid property tax, there in lies the problem. You have to collect it from everyone or no one.
     
  6. jimf41

    jimf41 TUG Member

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    I read the law also and I agree with you how it's worded it looks like everybody pays. That is not the opinion of the admin at the resort however.
     
  7. DavidnRobin

    DavidnRobin TUG Member

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    Whose opinion - which resort? Seems like they may be biased - that is not the interpretation based on what I have seen in writing. Also, remember - they are/have been attempting to increase property taxes for TS Owners and for StJ Owners - totally separate from this fee. They even set out Property Tax bills with this new rate back around 2012, but luckily lost in court. Our Property Tax was proposed to increase from $150/week to somewhere around $400.

    I discussed this new fee with BOD at WSJ-VGV (Westin) and he told me that the implications for Owners were currently under discussion within Vistana-WSJ, and with USVI Gov't and TS consortium - nothing about only exchangers or renters.

    We shall see... but as TS owners - we are especially vulnerable - you think USVI Gov't or Locals care if TS owners take on more burden?
     
  8. dioxide45

    dioxide45 TUG Review Crew: Veteran TUG Member

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    Do you have additional information that the rest of us don't? I don't see anywhere in any of the articles that it only applies to those paying a cash rate or renting a unit. These same types of taxes in Hawaii, Cancun and Aruba apply to owners staying on their home resort week, why would the tax in the USVI be any different?
     
  9. jimf41

    jimf41 TUG Member

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    Folks, I was passing along what I'd been told by local merchants, the non-sales folks here at MFC and local government workers. The people who make their living in the USVI on tourism are outraged. They know what these taxes will do to tourism. Let's all calm down and wait and see if it goes through in March. If it does the lawsuits will start. The last time somebody sued the USVI over their handling of property taxes the courts stopped them from collecting them for six years. Nothing happens quickly down here.
     
  10. DavidnRobin

    DavidnRobin TUG Member

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    I understand what you were relaying what was told to you, and the sentiment of the people (involved in tourism), and crazy workings of the USVI Govt, and how slow things move in the USVI (e.g. Property taxes and lawsuits), but you made a claim that is not supported by the multiple reported and documented proceedings of this issue.
    That was the point - I would like if only owners that already paid property taxes (like me at $300 per year) were not getting this fee (tax), but there is no documented evidence of this speculation.
    Sorry.
     
  11. jimf41

    jimf41 TUG Member

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    OK, if I hear anything further while I'm down here I won't pass it along.
     
  12. dioxide45

    dioxide45 TUG Review Crew: Veteran TUG Member

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    Jim, Had you provided more information and your sources in your post #28, no one would have questioned it. However all you said was;
    It was certainly not unreasonable for someone to question your sources. The part of your post that read Part of your post indicated "I'm unsure how it will affect trust point owners or enrolled owners using DP points" makes is sound like it was personal opinion.
     
  13. Tia

    Tia TUG Member

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  14. SpikeMauler

    SpikeMauler TUG Member

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  15. TUGBrian

    TUGBrian Administrator

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    well thats a shame :(
     
  16. happymum

    happymum TUG Member

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    How short-sighted!
     
  17. Sandy VDH

    Sandy VDH TUG Review Crew: Expert TUG Member

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    I cancelled my USVI trip as a result.
     
  18. chuck1955

    chuck1955 TUG Member

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    I suspect it will be sometime before they can implement this "tax" which I imagine Gov Mapp will sign today. Everything takes a while to implement in the USVI, and for the TS owners expect a lawsuit to materialize quickly and delay any implementation for several years if it even happens. I know what people were saying about the Hawaii issue that was similar, but I just don't see how you can double tax some property owners both for real estate as well as occupancy while not applying the same tax on all property owners. I can see the tax being legal for non property owners staying at a TS as a hotel or rental tax, but to put an additional tax on someone occupying their TS for their owned week without taxing all owners is unfair. USVI had different RE tax rates for timeshares back around 2005, and that was taken to court and overturned. It took USVI 5 years to get RE taxes on TS fixed before they could collect again.

    As far as the impact of the tax on tourism, probably not much after the hoopla goes away - we all got used to paying the exorbitant "resort fees" at these hotels....
     
  19. Tia

    Tia TUG Member

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    From the link posted by SpikeMauler--
    ''Timeshare unit owners will be charged a tax of $25 per day. The hotel occupancy tax of 12.5 percent will also be assessed on the overall cost of the unit.'':eek:

    I am not sure but are ts occupants going to have to pay $25/day + 12.5%??????
     
  20. dioxide45

    dioxide45 TUG Review Crew: Veteran TUG Member

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    Since an owner would not have an overall cost except their MFs, perhaps the 12.5% only applies to those paying cash to stay in a unit. So if you rent directly through the resort, you might pay 12.5% + $25/day? Not sure we know.
     
  21. Tia

    Tia TUG Member

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    Too soon to tell really but one owner who claims to 'know people' in the USVI is saying the USVI government plans to mail the occupant bill to owners of the units not have the resort collect it from whoever is staying. Same person says they will send it out whether or not anyone actually stays in the unit. HMMM?

    When anyone hears from their resorts on what is actually going to happen please update here.
     
  22. pedro47

    pedro47 TUG Review Crew: Expert TUG Member

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    I feel the persons occupying that week of time/space for their vacation should pay the tax of $25 per day. If the owner does not occupied his or her vacation week. Why should they pay the tax.
     
  23. DavidnRobin

    DavidnRobin TUG Member

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    I hope they send this as a bill to the owner - I am not going to pay this unfair taxation as I believe it will not hold up when challenged in court. When I decide to leave my WSJ weeks - I will walk away.
    IMO YMMV
     
  24. chuck1955

    chuck1955 TUG Member

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    I think this is a usage tax so it would be applied to whoever is using it, and probably collected by the TS management company at check-in/check-out. However I don't see where the Governor has signed it even though it passed their Senate a week ago, but then again the Governor's press secretary was suddenly fired this week as well - auspiciously after giving a substantial interview to some publication - so we might not know if/when he signs it LOL. Apparently there may also not be enough money for payroll next week - the pols are scrambling. Island people are quite upset.....
     
  25. chuck1955

    chuck1955 TUG Member

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    The way I read it, TS users was $25/day. I think the 12.5% occupancy tax was on Airbnb and other internet rentals for people renting their condos/houses - supposedly they already reached an agreement with Airbnb to collect the tax which is not considered a new tax but falls under the regular hotel tax already in effect. Some TS are rented out by the TS manager, maybe those fall under that as well? Seems like there will be multiple questions as to how all this applied and to what, so expect lawsuits to stop/delay implementation - the government will probably not see any additional revenue from this anytime soon.
     

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