The Orlando Sentinel is reporting that Florida lawmakers are actively pursuing legislation which would protect timeshare developers and owners from future added tax assessments.
If approved, the legislation would exempt promotional sales offers and timeshare exchanges from the bed taxes imposed on standard hotel stays. In return, the timeshare developers would agree to charge and remit bed taxes when their accommodations are rented out like hotel rooms.
This legislation stems from a case in which Broward County attempted to collect taxes from developer Fairfield Resorts Inc. related to discount stays offered to prospective timeshare customers. An appellate court ruled against the county and further suggested that the bed taxes commonly applied to cash reservations of timeshare units may in fact be exempt.
This plan would therefore represent something of a compromise, permanently exempting promotional stays and timeshare trades from the bed taxes, while mandating that cash stays in timeshare accommodations be subject to standard hotel taxes. The move has the endorsement of the American Resort Development Association and has thus far not encountered any formal opposition from Florida lawmakers.
Visit the Orlando Sentinel's website for additional details.
