TRAC Formally Moves to Recommend New Taxes On Timeshare Owners

2010-10-28

Issue Brief

The South Carolina Tax Realignment Commission (TRAC), at the strong urging of its Chair, voted 7-2 to include eliminating the existing exemptions on timeshare sales and exchange as well adding the accommodations tax to owners' maintenance fees in its recommendations to the Legislature.  TRAC Chairman Burnie Maybank help draft these provisions and pushed for their adoption.  Timeshare owners and industry representative opposed these measures throughout the TRAC process.     

Impact

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.  Additionally, taxing maintenance fees would increase the cost for existing owners, result an unfair tax imbalance compared to similar properties which are not part of timeshare plans and could lead to serious financial challenges for owners associations.

Position/Call to Action

If enacted by the Legislature, these proposals will be damaging to the timeshare industry, timeshare owners and, in the end, the economy of South Carolina as it sends timeshare visitors elsewhere.  ARDA and ARDA-ROC are committed to preventing these new taxes from becoming law and are working to put the tools in place to support the effort.  Thousands of South Carolina residents own timeshares in the state and can play a pivotal role in letting their elected officials know these taxes should not be passed.  Check back here for opportunities to help as the 2011 approaches or click here to provide your email and receive updates on this issue.

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