Tuesday, August 04, 2009

New Exchange Law for Timeshare Owners in Florida

The American Resort Development Association (ARDA), reported recently that Florida passed a law to ensure that timeshare exchanges are not subject to tax. The bill, HB 61, also puts other important protections for timeshare owners in place such as "Debt-Cancellation", where an owner could return a timeshare to a developer in the event of a job loss and not have their credit affected. The bill also codified the practice that transient stays at timeshare resorts are taxable.

"This ARDA-backed measure clarified the existing tax status of exchange, which had been questioned by some jurisdictions, as they searched for revenue in a down economy." said Jason Gamel, Vice President of State Government Affairs for ARDA.
Florida has now become the third state to pass legislation protecting timeshare owners from exchange taxes. The ability to exchange your timeshare week has been noted as one of the major attractions for timeshare buyers and owners in recent years. At this time, no state currently collects a tax on timeshare exchange, but it has become an increasing concern. This new law now protects timeshare owners from the possibility of paying taxes for exchanges that could have raised the cost and lowered the desirability of exchanges into the state of Florida.

"For 40 years, ARDA has worked with federal and state government officials in support of legislation to protect consumers," said Howard Nusbaum, President and CEO of ARDA. "The value of our industry rests in the continued trust of our owners and members."

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