As the Principal Broker of Advantage Vacation, a licensed timeshare resale brokerage located in Maui, Hawaii, I have written numerous articles about how tax legislation affects timeshare owners on Maui. Having just received a notice from ARDA-ROC about a proposed ordinance to create a new property tax classification for Oahu timeshares in Honolulu, I feel it’s time again to speak out in opposition to any “re-classification” of Oahu timeshares.
As I stated in an article published in the May/June 2013 edition of TimeSharing Today titled “Hawaii Timeshare Market Special Report” taxes continue to be an issue for timeshare owners in Hawaii. Timeshare owners generate a lot of revenue yearly and even though timeshares bring in a lot of tourist dollars, officials continue to raise property taxes and the Transient Accommodation Taxes. Timeshare owners are pretty much guaranteed to be return visitors each year, as they own a piece of Hawaii real estate and they bought it to use it!
As reported in the ARDA-ROC alert, currently, timeshare property in Honolulu falls under the classification of “hotel and resort” real property. This means that timeshares are taxed at the same rate as hotels and resorts. The proposed ordinance would create a new class of real property specifically for timeshares. This can only mean one thing – Oahu timeshare owners are one step away from paying higher property taxes!
As I also stated in the “Hawaii Timeshare Market Special Report”, unfortunately, in Hawaii, County and State level officials are empowered to raise taxes and continue to target timeshares as an easy source of tax dollar revenues. The officials fail to see how timeshare owners bring in large amounts of revenue year after year through car rentals, dining and entertainment, shopping in grocery stores, playing golf, etc. In almost every sector of daily life, Hawaii timeshare owners contribute to the local economy and yet are paying some of the highest timeshare taxes in the United States.
As an example, in May, 2012, the Maui County Council Budget and Finance Committee voted to increase the timeshare property tax rate and while it was lower than the requested rate increase, it marked the second year in a row where the largest tax increase on Maui fell on timeshare owners. ARDA and ARDA-ROC commented on how higher property taxes would harm Oahu timeshare owners and Oahu timeshare based HOA’s as follows:
— First, Hawaii property tax assessments are already among the highest of any jurisdiction in the United States.
— Second, Oahu timeshare owners, when compared to other property tax payers, would bear a disproportionate tax burden.
— Third, Oahu timeshare owners would see an even more substantial increase in annual maintenance fees since maintenance fees would not only include the increase in property taxes but also a higher overall General Excise Tax and Transient Accommodations Tax assessment.
As the proposed Oahu timeshare legislation moves forward through the courts, I will continue to report and keep all Oahu timeshare owners up to date.
Advantage Vacation is a licensed timeshare resale brokerage located at the Lahaina Cannery Mall in Lahaina, Maui. We are leaders in the secondary market of timeshare resales and are members of the Resort Development Association (ARDA) and Accredited Members of the BBB with an A+ Rating. Our licensed real estate professionals have over 35 years of experience and expert knowledge of resort, hotel, vacation clubs and points-based timeshare resales. We never charge an upfront fee for clients who want to sell a timeshare and only receive a commission, paid from escrow, when the transaction is closed. If you want to buy a timeshare resale, you can be assured you are working with professionals who believe that honesty and integrity are the most important aspects of the business they are in – timeshare resales.
Whether you want to buy a timeshare or sell a timeshare, they will be with you every step of the way – before, during and after the transaction is completed. Our business has been built on relationships and we pride ourselves on providing excellent service to our clients. Advantage Vacation is using Twitter and Facebook to help educate people on the changes in the timeshare industry along with current timeshare tips, up to date timeshare news and timeshare FAQ’s.
We hope you will follow us and our blog, Timeshare Blogging by Advantage Vacation for the latest timeshare news and reviews. If our site does not answer your question or questions, please email us your question and we will answer it and add it to our library. Make your voice heard – what questions do you have?
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