Two days ago (February 7) the news of a settlement with Maui County was circulated among the Starwood sales staff. In that package was an FAQ that owners can have. I couldn't get an electronic copy but did receive a printout.
I don't know how to format the tables so they are spaced properly. Perhaps someone can help me with that. I also put the text into a Word document.
Net: KOR has $ 2,382,057 tax savings, KORN has $1,510,096 tax savings, over the 2009/2010 and 2010/2011 tax years.
Here's what the FAQ says:
MAUI COUNTY REAL PROPERTY TAXT SETTLEMENT OVERVIEW
Information
February 7, 2011
The Ka'anapali Ocean Resort Villas (KOR) Vacation Owners Association and Ka'anapali Ocean Resort Villas North (KORN) Vacation Owner's Assiciation ("Associations") filed a tax appeal in April 2009 when both associations received notice of a substantial increase in property valuation by Maui County. The increased valuation led to a corresponding increase of $4,124,162 in real property taxes from $2,261,819 in tax year 2008/2009 to $6,385,981 for tax year 2009/2010 for KORN and an increase of $5,199,076 in real property taxes from $1,218,266 in tax year 2009/2009 to $6,417,342 for tax year 2009/2010.
The Associations paid the full amount of the taxes under protest. The disputed portion of the taxes was placed in a litigation escrow account and frozen from use by the County of Maui pending the outcome of the appeal.
During the course of the litigation, the Associations discovered the true market value of their respective properties for assessment purposes. The Associations hired a well respected real property appraisal firm. The firm's staff completed exhaustive research and analysis of the market data for vacation ownership units. This data and conclusions were presented in detail to Maui County staff. As a result, The County of Maui has agreed to wholly accept our expert witness'calculated property values for the 2009/2010 and 2010/2011 assessments and is making the appropriate adjustments. The following table reflects the net reduction in assessments and corresponding tax saving versus the original tax liability imposed for the years provided herein.
Ocean Resort Villas (KOR)
INITIAL AGREED NET
ASSESSED ASSESSED REDUCTION % TAX
YEAR VALUE VALUE IN VALUE RED. SAVINGS
2009/2010 $ 456,139,860 $ 355,139,065 $ 101,000,795 22.1% $ 1,414,011
2010/2011 368,902,800 299,756,660 69,146,140 18.7% 968,046
Total $ 825,042,660 $ 654,895,725 $ 170,146,935 20.6% $ 2,382,057
Ocean Resort Villas North (KORN)
INITIAL AGREED NET
ASSESSED ASSESSED REDUCTION % TAX
YEAR VALUE VALUE IN VALUE RED. SAVINGS
2009/2010 $ 456,291,590 $ 379,259,315 $ 77,032,275 16.9% $ 1,078,452
2010/2011 376,861,200 346,029,493 30,831,707 8.2% 431,644
Total $ 833,152,790 $ 725,288,808 $ 107,863,982 12.9% $ 1,510,096
In addition to a refund of taxes, as reflected in the Tax Savings column above, the Associations will receive interest on these amounts as well. The refund will be placed into the general operating fund of the Associations. The Board of Directors for each Association has discussed how to apply the funds in compliance with the Association's governing documents. Each Association board has decided that the fun ds will be applied toward the operation and reserve expenses in the 2012 budget for the respective Association when the budget is considered for approval this fall.
Sorry about long quote do we know how the refund and interest were dispersed.
