Wisconsin Timeshare Owners :An Email from RCI

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

I Need Your Input!! Please Help!

I am really surprised that this is not a hot topic. The fact that one State is going to control or even stop the building of new timeshare Resorts in that State should be a wake up call to all Timeshare Owners. The fact that one State wants to put a daily use TAX of 13-15% on Exchanges should be another wake up call. The fact that that State wants to put an artificial daily Exchange Value on an Exchange should be another wake up call. If it can happen in Wisconsin, it can happen in your State!

As an example about the artificial daily Exchange Value: Take the Hotel rate of $400/$500 per night at the Embassy in Maui. We all know that we can also get into the Embassy for $1200 minus 30% for charging it to an American Express Credit Card at Snap Travel or about $100 per night. What number do you think the State would use for the User Tax? You better believe the one that gives them the most income!

Are you not concerned about the direction timesharing has taken?

TAXES on the use of Exchanges!
Hawaii’s added Property TAX on Timeshare Units!
Exchange Companies acting more like Rental Companies!

I plan on doing as much as I can in Wisconsin to try and Stop this USER TAX. I really need your input. I will be talking to my State Senator and the more I can tell him about what Timeshare Owners think about this User Tax the better is will be for Wisconsin Timeshare Owners. But if we can defeat this Bill, it will help you too.

Do not think of this as User Tax in Wisconsin. Think of this as a User Tax for YOUR timeshares.

Thanks,

Walt

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

Good News For Now!

I received this email today!

Walt

__________________________________________________ _____________
Thank you for taking the time to contact my office with your opposition to Senate Bill 638. I appreciate your input.

SB 638 would authorize a premier resort area to limit or prohibit managed time-share projects and to impose a tax on the exchange of time-share units. Although SB 638 did pass through the Senate, it failed to make any progress in the Assembly. The bill will no longer be eligible to go before the Governor this session.


Again, thank you for contacting me. Please keep in touch.


Sincerely,


Ted Kanavas
State Senator
33rd Senate District

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Between the sales weasels, the exchange companies, resale scams, and home resorts who do not even know how to keep books, rentals are looking pretty good.

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

Whereas timesharing fits in between ownership and hotel like accomodations, those states with a lodging tax are tempted to include timesharing in the lodging category and make it taxable. The strongest arguement against such taxes is that timeshares are already taxed as real estate and additional taxation would be a double tax.

[4ARedOctober Super Moderator Find all posts View Profile Close 4ARedOctober]

Perhaps the big push to tax timeshares is the big push to rentals by RCI and the competition with other retail lodging establishments. Why not tax them if they really aren't timeshares or exchanges anymore.....but are rentals?????

[T. R. Oglodyte Moderator Find all posts View Profile Close T. R. Oglodyte]

Whereas timesharing fits in between ownership and hotel like accomodations, those states with a lodging tax are tempted to include timesharing in the lodging category and make it taxable. The strongest arguement against such taxes is that timeshares are already taxed as real estate and additional taxation would be a double tax.

Tony - I thought that hotels also paid real estate taxes? If not, that is the loophole that should be closed.

Otherwise, if occupancy tax for timeshares is double taxation, why wouldn't occupany tax on hotel guests also be double taxation?

But then, I also believe that all forms transient taxation - rental cars as well as hotels - are illegiitmate exercises of police power and should be declared unconstitutional by the courts as an impermissible restraint on interstate commerce. Of course, states should be free to impose transient taxex on their own residents, because that only affects intrastate commerce. I doubt that any politician who proposed that would get relected.

Once you grant power to any entity - be it government, corporation, labor union, public interest group, lord of manor, whatever - they soon figure out that it's easy to screw those who are powerless to resist.

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

Good points.

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

Exchange Companies Rental Programs Could Be Part of the Problem.

Perhaps the big push to tax timeshares is the big push to rentals by RCI and the competition with other retail lodging establishments. Why not tax them if they really aren't timeshares or exchanges anymore.....but are rentals?????

I really think this could be true. Wisconsin also is looking to close any tax loop holes. I believe that Exchanges are even transaction and no tax should be paid. While rented Timeshare Weeks are income producing transactions and should be taxed. I rented a week from RCI and the transaction is listed the same as an Exchange. I got the same Vacation Confirmation as I would with an Exchange. There is no mention of a rental.

So this could be the way that States will not have to play the Exchange or Rental game with any Exchange Company. They will just tax both transactions.


Wisconsin has a high Property Tax.

It has an Income Tax.

It has a Sales Tax.

Wisconsin like to tax everything.

So if they can may it look like the Tax is being paid by non-resident Exchangers, that is even better. Why? Because they didn't raise the voters Taxes.

Walt