Hotel taxes included in the Governor’s Budget for FY 2015

2014-01-16

Issue Brief

The Governor’s Budget for FY 2015 (HB 7133 – Rep. R. Gallison) was introduced on January 16, 2014. It extends the state’s hotel tax to timeshare property by including timeshares in its definition of the term “hotel”The Governor’s Budget for FY 2015 (HB 7133 – Rep. R. Gallison) was introduced on January 16, 2014. It extends the state’s hotel tax to timeshare property by including timeshares in its definition of the term “hotel”.

 

Impact

By subjecting timeshares to the hotel tax without distinguishing between use of a unit by a timeshare owner and rental of such unit to a non-owner, owners would have to pay an occupancy tax when using their units or exchanging into them.By subjecting timeshares to the hotel tax without distinguishing between use of a unit by a timeshare owner and rental of such unit to a non-owner, owners would have to pay an occupancy tax when using their units or exchanging into them.

By subjecting timeshares to the hotel tax without distinguishing between use of a unit by a timeshare owner and rental of such unit to a non-owner, owners would have to pay an occupancy tax when using their units or exchanging into them.

 

 

Position/Call to Action

 Consonant with ARDA’s position against the taxing timeshare use by owners, ARDA and ARDA-ROC vigorously opposed before the House and Senate Finance Committees the portions of the budget that extend the hotel tax to timeshare use or exchange by owners.

 

Resolution

 HB 7133 passed without the language extending the hotel tax to timeshare use and was signed into law on June 19, 2014 by Governor Lincoln Chafee.