Transient Accommodation Tax

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

No. This is purely an apples and oranges thing. In a hotel, you pay a percentage of the room rate. There is no room rate in a timeshare, so you should pay whatever percent of zero which is zero.

When you trade ownership of land to someone for other land, even the IRS does not try to ''impute'' income tax.

Since points members are not owners, these taxes are one more reason why owning in a weeks based resort is better.

On the Outer Banks the local government tried to bill HOA's for a special annual tax on property held for rent. Several grumbled but paid up. Several others pointed out that the HOA did not own the units, and to the extent the HOA did have some weeks, they were not renting these but reselling them, and on that basis they were not liable for the tax and would not pay. On the advice of the county attorney, the county backed down and refunded the amounts that the weaker backboned HOA's had paid. Sometimes it is worth looking into these things because government is on shaky ground.

Timesharing users should have to pay transient occupancy taxes. That is if they don't own the unit. In WorldMark, you pay it whether or not you own.

State and local governments lose this revenue when hotels convert to timeshares. An exchanger coming into a unit is really renting that unit from the owner. And, they are renting their unit to another owner.

The next step will be for the IRS to tax the imputed rent you get for exchanging. I don't think it will happen until you must pay taxes on the imputed rent you collect for living in your own home.