ARDA-ROC Issues Official Response to Hawaii's Attempt to Increase Timeshare Owner Tax

2011-02-02

Issue Brief

At the urging of Hawaii Governor Neil Abercrombie, several bills have been introduced in the Legislature to increase the TAT on timeshare owners from 7.25% to 9.25% as well as increase the amount subject to tax from 50% of the daily maintenance fee to 150% of the daily maintenance fee.  The Governor said Hawaii needed the increase to “ensure that our visitor industry is sustainable.”

Impact

HB 1092 and SB 1319 would create a 400% increase on Hawaii timeshare owners, who are the only owners in the U.S. who pay such a tax.  For example, under current law, a timeshare owner with a $1000 maintenance fee pays a TAT of $36.20.  Under the new legislation, the TAT payment for the same owner would be $138.70.  For an owner with a $2,000 maintenance fee, the TAT would go from $72.50 to $277.50.

Position/Call to Action

ARDA-ROC, ARDA and ARDA-Hawaii are currently assessing all legislative and legal options to defeat the proposed tax increase.  Information will be added to the website this week (week of January 31) that will help educate owners on this issue and inform them as to how they can help in the fight to defeat this unfair tax increase.

Issue Updates

Today ARDA-ROC issued an official statement opposing this tax, calling on all affected owners to be prepared to participate in the effort to defeat these tax measures.  As this is only the beginning of the legislative session in Hawaii, ARDA-ROC expects to remain engaged on this issue on behalf of owners and encourages you to visit www.ardaroc.org regularly for updates.

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