ARDA and ARDA-ROC Oppose Elimination Of Timeshare Tax Exemptions


Issue Brief

 Two separate bills were introduced in South Carolina’s House and Senate (H 3671 and S 523 respectively) that, if enacted, would eliminate important tax exemptions that exist today for timeshare. These exemptions include the sales tax exemption on the gross proceeds from the sale of timeshare interests, and the sales tax exemption on the exchange of timeshare interests.   



 Imposing these taxes would discourage owners and guests from exchanging into South Carolina resorts, as they will be charged an unprecedented exchange tax to do so. Additionally, taxing the sale of timeshare would negatively impact future sales and deter further development in the state.  


Position/Call to Action

 ARDA and ARDA-ROC oppose eliminating the above-mentioned sales tax exemptions, as they would negatively impact future sales and development in South Carolina, as well as discourage timeshare exchanges to the state. 


Issue Updates

ARDA-ROC representatives met with the bill sponsors on March 18,, 2015, to ask that timeshare be excluded from the bills based on the following reasons:

  • The sale of timeshare is almost exclusively the sale of real property and therefore should be exempt as well
  • No other state in the U.S. has enacted a tax on timeshare exchange


 At the conclusion of the meeting both sponsors indicated their willingness to exclude timeshare from their bills.  

On 3/24/15 the Senate Finance Committee moved to strike all of the original language from the bill and the sponsor proposed to replace it with new language which does not impact timeshare.  

As of 4/6/15, H 3671 has not been calendared for a committee hearing. We will continue to follow up to ensure the sponsor excludes timeshare from the bill. 

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