by Jason Gamel, ARDA State Affairs
April 30, 2012
On Friday, April 20, several timeshare industry representatives testified in front of the Maui County Council to oppose Mayor Alan Arakawa’s proposed increase in the timeshare property tax rate from $15.00 to $16.15 per $1,000 of assessed value. While we remain positive about preventing an increase, the County also became aware that its prior property tax revenue assumptions were overstated, meaning the Mayor will have to revise his budget to include $6 million in revenue increases. At this time there is no indication that Maui County would be interested in cutting spending vs. raising more revenue, explaining the proposed increase in the timeshare property tax rate. Click here to view the testimony submitted by ARDA, ARDA-Hawaii, and ARDA-ROC. We’d like to thank the representatives from Starwood Vacation Ownership, Marriott Vacations Worldwide Corporation, Wyndham Vacation Ownership, Diamond Resorts International, Sands of Kahana Resort, ARDA, ARDA-ROC (Resort Owners’ Coalition), and the law firm of Imanaka, Kudo and Fujimoto for their presence at the hearing on April 20 as well as the owners and developers who submitted testimony.
On May 3rd, the Maui County Council will have another public hearing to take testimony on the proposed property tax rates, including the timeshare rate. Even though the industry has made its position clear to the council over the past two years, ARDA and ARDA-ROC will continue to express its concerns about any increase to the timeshare tax rate.
We need your help. Please share your concerns with the County Council Members. For contact information or to review talking points on this subject, visit the Maui County Tax Center on the ARDA-ROC website.
Unfortunately, this will not be the last time that ARDA, ARDA-ROC, and the timeshare industry will be doing battle with the Maui County Council on property tax issues. Rest assured that we are continuing to look at ways that the industry can convince the council that taxing the timeshare industry is not a long term solution for the county’s budget issues. Please check back with us in the next few weeks for more information.