UPDATE 5/2/2021: With the Florida legislative session concluding on April 30th, 2021, so has the prospect of Senate Bill 1358 and House Bill 1007. Both bills died in committee without being taken up by the full House or Senate, likely due to large concerns surrounding the effects this timeshare legislation could have on county budgets.
A bill currently winding its way through the Florida legislature could impact Disney Vacation Club property taxes in the future.
According to the Orlando Sentinel, Senate Bill 1358 and House Bill 1007 look to change the method by which timeshares are appraised. Under current law, appraisers look at new sales that occur for each property to value the resorts. This legislation aims to require appraisers to factor in resales for a property if a reasonable number of sales examples exist.
Florida Senator Joe Gruters spoke to the bill in a recent regulated industries committee meeting. Sen. Gruters stated that most new timeshare purchases have a sales premium in excess of 50% of the total purchase price. This price is viewed as significantly inflated when compared to resales that occur within the same unit. “All we’re doing with this bill is saying that the taxpayer has the ability to appeal that assessment based on current resales.”
County appraisers are opposed to this bill and are concerned with its impact on the revenue generated by these property taxes. The Orlando Sentinal states that timeshares account for approximately $175 million in annual property taxes in Orange County that help fund schools, libraries, and parks throughout the area. If passed, Orange County Property Appraiser Amy Mercado believes that these receipts could decline by anywhere between 50% and 70%.
Disney Vacation Club could stand to benefit from this change but has stayed quiet and distanced itself from the bill itself. While Disney was asked to review the legislation at its sponsoring members’ request, they are not actively lobbying for its passage and are quietly watching from the sidelines.
With resales already making up a significant percentage of Disney Vacation Club sales, it is unlikely that this bill’s passage will have any large effects on owners’ property taxes. However, any savings associated with a reduced tax burden would find their way to DVC owners in future annual dues estimates.
We will be watching these bills as they slowly work their way through this legislative session and report back any new updates!
Source: Orlando Sentinel