Owners who get out of their timeshares have realized that there are a number of hidden fees in owning such property. Aside from the maintenance fees which usually increase every year, there are also taxes which may rise on any given time. Such tax increase on Maui enraged timeshare owners who say they are being hit with dramatically higher bills than local residents are paying.
At the time Maui property values are falling, taxes on some timeshare properties doubled, tripled and more in the past year. According to the timeshare owners, Maui County officials are trying to balance the county’s budget by collecting more money from absentee vacationers so they don’t have to raise taxes on local residents. In 2005, Maui County became the only local government in the U.S. to create a tax rate category just for timeshares and at $14 per $1,000 of assessed valuation, it has the highest tax rate on time shares in the nation.
This issue regarding taxes is serious enough that ARDA’s president, Howard Nusbaum, have to fly to Hawaii last week for two days to tout the economic benefits of time shares to government, tourism and business leaders. On the other hand, he spent one day on Maui meeting with Mayor Charmaine Tavares, county council members and business leaders about timeshare taxes and plans for future growth.
While several timeshare owners protested the county’s move in taxing them at such a high rate while keeping residential rates low, other owners are already getting rid of their units. Some of them may even hire a timeshare transfer company such as the Transfer Smart just to get rid of such property.