SC Commission Takes Testimony on Tax Exemptions - Timeshare Exchange Exemption Discussed

2009-11-12

Issue Brief

Today in Columbia the South Carolina Tax Realignment Commission (TRAC) began taking public testimony regarding tax exemptions currently in place under state law.  The tax review process was initiated in response to ongoing revenue shortfalls in South Carolina.  Jason Gamel, ARDA Vice President of State Government Affairs, appeared in support of maintaining the existing exemption for timeshare exchange transactions.

Impact

South Carolina was the first state to pass a specific exemption for exchange transactions, setting a precedent later followed by other states including Florida.  No state currently taxes exchange transactions.  Adding a tax on exchanges would make South Carolina resorts less desirable for new buyers and developers, as well as making it harder for existing owners to complete exchanges and potentially lowering the trade value of their weeks.

Position/Call to Action

TRAC will continue meeting through 2010 and will present recommendations to the South Carolina Legislature for consideration during the 2011 session.  Please check back here for updates on the Commission's progress and plans to combat any new taxes on the timeshare industry and owners.

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