Visits to timeshare resorts in Hawai'i--including Disney's Aulani resort--are subject to a usage tax imposed by the state. While the fees are currently modest, lawmakers are considering changes to the tax rate which could nearly quadruple the amounts paid by timeshare guests.
Hawai'i's Transient Occupancy Tax is currently set at a rate of 7.25% of 50% of the resort's annual dues. With Aulani dues calculated at $4.31 per point in 2011, the tax amounts to $.1562 per point.
Two separate measures have been introduced which would raise the tax rate dramatically. House Bill 809 proposes an increase in the tax percentage from 7.25% to 9.25%. Additionally, House Bill 1163 aims to increase the tax basis from 50% of the annual dues to 150% of the member dues.
Passage of both measures would increase the tax from $.1562 per point to $.5980 per point. The tax on a One Bedroom Ocean View in Magic Season (58 points per night) would increase as follows:
Current: $9.10 per night
HB 809: $11.56
HB 1163: $27.19
Both bills: $34.68
Terms of the Hawai'i law dictate that the Transient Occupancy Tax be billed villa occupants rather than bundled with dues and charged to the owner. These fees will be charged to Disney Vacation Club members staying at Aulani regardless of their Home resort(s).
The State of California also imposes a Transient Occupancy Tax, though its laws allow for the fee to be billed to owners rather than villa occupants. For 2011, the California TAT is set at $.4088 per point.
The State of Florida does not currently impose an occupancy tax upon timeshare owners or guests.
The American Resorts Development Association (ARDA), a timeshare industry trade group, has pledged to lobby against any increases to the occupancy tax. All Hawai'i based timeshares would be subject to the increased tax rates.
In 2009 the ARDA successfully lobbied Florida lawmakers to exclude timeshare owners from additional taxes.
Thanks to site member "wdrl" and posters on the disboards.com for contributions!
