The American Resort Development Association (ARDA) says that a recent Florida legislation will protect timeshare owners. Apart from tax exemptions in timeshare exchange transactions, the new bill (HB1) also codifies a common industry practice regarding the taxation of transient stays at timeshare resorts. It also allows developers to offer debt cancellation products.

Currently, no state of jurisdiction collects tax on timeshare exchanges transactions. However, it has become a prospect for some state and local governments due to growing budget shortfalls.

Florida is the third state to pass the legislation, which protects owners from taxes on exchange, one of the major benefits of having a timeshare property.

“For 40 years, ARDA has worked with federal and state government officials in support of legislation to protect consumers,” says Howard Nusbaum, president and CEO of ARDA. “The value of our industry rests in the continued trust of our owners and members.”
ARDA has been advocating the legislation actively and publicly.

“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 of ARDA

Source: HotelsMag.com