TRAC Makes Final Recommendations to SC Legislature


Issue Brief

In early December, 2010, the Tax Realignment Commission (TRAC) sent its final report to the legislature, and in doing so, made the following recommendations with respect to the timeshare industry:  i) the removal of the sales tax exemption the industry currently enjoys for the sale, resale, and exchange of timeshare interests, ii) the imposition of a transient accommodations tax on maintenance fees paid on all timeshare interests in South Carolina, and iii) the removal of the personal property tax exemption for fixtures, furnishings and equipment located in a timeshare unit.


Fortunately for the industry these recommendations are non-binding on the Legislature.  However we believe the industry is still at risk that one or more of these suggestions could find its way into a legislative proposal.  The effects of each proposal would be to not only increase the cost of developing and selling timeshare in South Carolina,  but also to increase taxes on all timeshare owners via increased maintenance fees and newly imposed taxes on exchange.  Click here to view the official TRAC website which includes TRAC's final report to the Legislature.

Position/Call to Action

ARDA and ARDA-ROC continue to oppose TRAC's recommendations and will fight to keep them from being included in any legislative proposal in 2011.  In the event TRAC's recommendations are included in a legislative proposal, we will seek the support of the timeshare development community as well as timeshare owners to help support our efforts, so please continue to check back to this site for continued updates in 2011.


The ARDA-Carolinas Committee in partnership with ARDA-ROC are committed to devoting all of the necessary resources to ensuring that these recommendations do not become law in 2011and beyond and have already taken several steps to accomplish that goal.

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