Property Taxes.

[SMHarman]

Even Marriott are now for arguing that their timeshares are worthless on the resale market.

Lobbyist for Marriott timeshare owners wrote tax break proposal

A lobbyist hired by the owners of one of the largest Marriott-branded timeshares in the world said she was behind a mysterious property-tax measure that appraisers say would save timeshares —…

www.orlandosentinel.com

The proposed legislation from the Grande Vista lobbyist is designed to drive the assessed values of timeshares lower by forcing property appraisers to base their calculations on resales — when an individual timeshare owner sells to another individual buyer — rather than new sales by developers. Timeshares typically resell for a small fraction of the initial purchase price.

 

[dioxide45]

Technically this is from the HOA BOD at Grande Vista not MVC corporate. The BOD has a gain to be made in driving down the value of the property when it comes to taxes. When I went to the BOD meeting in 2018, this was discussed heavily and they even spoke about writing up the legislation to send to the state. Interesting that much of the legislation that goes through state and even federal governments isn't started or even written by the lawmakers.

I think they need to relook at how property taxes are assessed on timeshares, but basing them solely on distressed resale value probably isn't the right way. Why not compare them to similar wholly owned condominiums? I think Grande Vista last sold for around $23,000 for a 2BR Platinum week. There is no way a similar 2BR condo in the area is worth almost $1.2 million.

 

[emeryjre]

Wouldn't the tax value be based on 52 weeks per unit? So whatever value was determined would be multiplied by 52 weeks to come up with an assessed value? IMHO

 

[dioxide45]

Wouldn't the tax value be based on 52 weeks per unit? So whatever value was determined would be multiplied by 52 weeks to come up with an assessed value? IMHO

That is the problem, what is the value of one week? The developer price, the distressed resale price, or in between. If in between, what is that number?

 

[CalGalTraveler]

Why do we assume that all resale prices are distressed? Perhaps that's what they are really worth (Perhaps take an average of resales and throw out some of the lowest and highest outliers.)

 

[dioxide45]

Why do we assume that all resale prices are distressed? Perhaps that's what they are really worth (Perhaps take an average of resales and throw out some of the lowest and highest outliers.)

I think the argument by those opposing the measure is that resale prices are distressed simply because of the MF burden.

 

[jabberwocky]

Wouldn't the tax value be based on 52 weeks per unit? So whatever value was determined would be multiplied by 52 weeks to come up with an assessed value? IMHO

Just remember for most timeshares $0 multiplied by anything is still $0.

 

[emeryjre]

People are still buying timeshares and points every day at full price from the developers. Many of us bought our first timeshare that way. I certainly did.

Resale values are low because of the lack of information flowing to people that are currently buying timeshares from the developer.

So what is a week valued at? If a person educates himself/herself about the systems, weeks, seasons and other multiple factors that go into acquiring a timeshare week at resale and then calculates the time, energy and effort acquiring the information, it is hard to value a timeshare at zero. Perhaps certain weeks in a season are worth far less than other weeks of the year at a resort, but there is certainly value for some of the weeks. So I disagree with the notion that a timeshare week value is zero.

 

[SMHarman]

I don't belive they are trying for zero. They are just disagreeing with the multiplier being $40,000 which includes incentives, sales commission, marketing costs etc.

 

[alohakevin]

Why do we assume that all resale prices are distressed? Perhaps that's what they are really worth (Perhaps take an average of resales and throw out some of the lowest and highest outliers.)

For real estate transactions on the residential side thats typically how its done. Comps are used to determine fair market value. I believe most tax appraisers would tell you the EAV is based on fair market value.

 

[okwiater]

IANAL but this is likely to fail. In real estate appraisal there is a concept of “Highest and Best Use.” Resales of timeshare unit weeks are not representative of the highest and best use of a timeshare property, and therefore shouldn’t be used to determine its assessed value. The correct value is better approximated by using the value of developer-sold weeks or possibly the value of the property if it were sold or redeveloped as condos.