The Florida state House and Senate have approved a measure shielding timeshare trades and promotional stays from taxes, while reaffirming the taxability of timeshare accommodations rented for cash. Additionally the bill gives developers the right to sell debt cancellation policies which allow buyers to walk away from the timeshare purchase in the event of a job loss or other economic hardship.
According to the Orlando Sentinel, bill HB 61, passed the Florida House and Senate without a single dissenting vote. The bill is being sent to the goternor who is expected to sign it into law.
The bill reaffirms that timeshare owners who trade their accommodations through exchange companies like Interval International and RCI are not subject to additional taxes at the time of the stay. Also promotional stays offered by developers for the purpose of allowing potential customers to preview the accommodations are not subject to taxation.
Meanwhile timeshare stays booked at cash rates--such as Disney offering rooms at Disney Vacation Club resorts like Old Key West and Saratoga Springs--remain subject to the standard hospitality taxes imposed by state and local governments.
The bill also gives Florida timeshare developers the ability to sell job loss policies which allow buyers to give back their timeshare ownership in the event of economic hardship. During a period of economic uncertainty, developers feel that the comfort offered by such policies can only aid their sales efforts.
Disney Vacation Club was among the developers actively supporting all of these measures.
Source: Orlando Sentinel
