Aulani tax for staying on points

[rstamm]

I just noticed on my email conformation for AK that there is a transient tax at Aulani based on how many points you use and must be paid by checkout.

Anyone know how much it is?

 

[jlewisinsyr]

Here are the specific details:

Hawai'i timeshare stays are subject to a Transient Accommodations Tax which will be collected at the time of the stay. The tax rate is currently one half of the annual dues rate times 9.25%. Based upon the stated dues rate for 2011, the tax rate for that year will be $.1993 per point. The TAT is payable by the individual occupying the room (member, guest, renter, etc.) and therefore will not be included in DVC member dues collections.

For one week in a Ocean View 1 Bedroom in the lowest season it would $4.31 X 50% X 9.25% X 322 = $64.19

 

[rstamm]

Thanks for clearing that up, I wouldn't be surprised if California starts doing this too since they are in a financial mess.

 

[wdrl]

. . . I wouldn't be surprised if California starts doing this too since they are in a financial mess.

According to the 2010 annual budget for VGC (see http://www.dvcnews.com/index.php/dvc-program/financial/2010-resort-budgets), there is already a Transient Occupancy Tax of $0.3529 per point being paid by the VGC owners. VGC is the only DVC resort that has a line item for this type of tax.

 

[drewmisha]

So why are the GCV owners paying TOT taxes for our points upfront in the dues? It seems the GCV owners are subsidizing other non-owners' stays at GCV. The Aulani way seems more fair. Am I missing something? Thanks.

According to the 2010 annual budget for VGC (see http://www.dvcnews.com/index.php/dvc-program/financial/2010-resort-budgets), there is already a Transient Occupancy Tax of $0.3529 per point being paid by the VGC owners. VGC is the only DVC resort that has a line item for this type of tax.

 

[OKWNutt]

How can they charge you what amounts to be a hotel tax when you are already paying property tax?

 

[OKWNutt]

How can they charge you what amounts to be a hotel tax when you are already paying property tax?

 

[tiggerrr]

How can they charge you what amounts to be a hotel tax when you are already paying property tax?

The short answer is because they can. It's the same reason a state can charge you income tax on your income and then charge you a sales tax when you spend that income (that was already taxed).

 

[jlewisinsyr]

How can they charge you what amounts to be a hotel tax when you are already paying property tax?

Um...you're not double paying for the property, you're paying a seperate tax, called transient use. It's like a car rental. You could be charged a sales tax, a facility tax, etc.

 

[dvc_john]

I was in Hawaii in September, and, as an example, this is what I paid in transient occupancy tax on timeshare stays:

1br Hilton Lagoon Tower Waikiki: $5.76/night
1br Hilton Kingsland Waikoloa (Big Island): $7.34/night
1br Hilton Grand Waikikian Waikiki: $5.87/night

For the few nights in a hotel on Maui the hotel tax on a $169/night room was $22.67/night.

 

[dvc_john]

So why are the GCV owners paying TOT taxes for our points upfront in the dues? It seems the GCV owners are subsidizing other non-owners' stays at GCV. The Aulani way seems more fair. Am I missing something? Thanks.

I suppose the big difference is that in California, the tax is combined with the real estate taxes and billed by and paid to the county treasurer.
In Hawaii, it's paid at the resort and submitted by them to the proper authority. DVC just has to work with the system in place in each state.

I know for my Palm Springs Marriott week, the timeshare special assessment tax was about 40% of my total tax bill.

 

[YourEveryDayAdam]

So why are the GCV owners paying TOT taxes for our points upfront in the dues? It seems the GCV owners are subsidizing other non-owners' stays at GCV. The Aulani way seems more fair. Am I missing something? Thanks.

It's a matter of what the laws in the separate states say who owes the tax.

In California the law says it's the owners of the resort who owe the money. Because of this, DVC just adds the cost of the taxes to the dues.

In Hawaii the law says it's the people staying at the resort who owe the taxes. Because of this, if DVC rolled the taxes in to the dues, they wouldn't be charging the right people the tax. If the owners weren't the ones who stayed at the resort using their points, then they wouldn't be responsible to pay the tax. An example of this would be an owner who rented out their points, or traded their points using either RCI or to a Disney Cruise, etc.

 

[Dean]

It's essentially a way to get some of the sales tax that a hotel would collect if staying there instead. Many places have this and it might be levied by a state, local municipality or country. HI, MX and Aruba do among others. It's essentially an occupancy tax. Even with property taxes and these fees, it's still generally much less than a comparable sales tax would be.

 

[taaren]

As someone who lives here, I'll tell you that the property taxes are extremely low for full-time residents, and income tax is pretty reasonable. The way they make it up is by charging a high hotel tax and transient taxes.
Also, TATs tend to be County taxes whereas your taxes built into your maintenance fees probably go to the state. The governor recently suggested appropriating hotel taxes for State use and everybody was in an uproar since the counties aren't in the best fiscal health either at the moment.
We have always had high hotel taxes largely because our entire economy is built on the tourism industry and the military presence here. We need those taxes to pave our roads (we have almost no freeways, therefore no federally funded roads), keep our kids in school, keep our libraries, correctional facilities, hospitals open, etc, etc. So they build it into the price of paradise. Even in good times, the price of living here is so high nobody would be able to afford to eat if our property taxes or income taxes were any higher. Think about what it would be like to have to buy milk at $5/gallon all the time. Not to mention some of the highest gas prices in the nation, and highest real estate per square foot. Couple that with some of the lowest wages in almost every industry compared to mainland salaries and its not a pretty picture.
Anyhow, relax, enjoy, and be glad you're just visiting. ;-)

 

[NewDCLGuy]

Think about what it would be like to have to buy milk at $5/gallon all the time. Not to mention some of the highest gas prices in the nation, and highest real estate per square foot. Couple that with some of the lowest wages in almost every industry compared to mainland salaries and its not a pretty picture.

Let me think.... think... trying to find sympathy.... nope, not finding it. To an outsider, you live in paradise. I know it might not feel like it when you live there every day, but when it's 20 degrees outside here in New England, $5/gallon milk doesn't sound too bad

 

[Dean]

As someone who lives here, I'll tell you that the property taxes are extremely low for full-time residents, and income tax is pretty reasonable. The way they make it up is by charging a high hotel tax and transient taxes.
Also, TATs tend to be County taxes whereas your taxes built into your maintenance fees probably go to the state. The governor recently suggested appropriating hotel taxes for State use and everybody was in an uproar since the counties aren't in the best fiscal health either at the moment.
We have always had high hotel taxes largely because our entire economy is built on the tourism industry and the military presence here. We need those taxes to pave our roads (we have almost no freeways, therefore no federally funded roads), keep our kids in school, keep our libraries, correctional facilities, hospitals open, etc, etc. So they build it into the price of paradise. Even in good times, the price of living here is so high nobody would be able to afford to eat if our property taxes or income taxes were any higher. Think about what it would be like to have to buy milk at $5/gallon all the time. Not to mention some of the highest gas prices in the nation, and highest real estate per square foot. Couple that with some of the lowest wages in almost every industry compared to mainland salaries and its not a pretty picture.
Anyhow, relax, enjoy, and be glad you're just visiting. ;-)

No doubt many things there are higher but there are benefits also. Military personnel don't pay those prices as a rule. Last I knew beef was still as cheap or cheaper in HI than most places. I don't know how it is now but import cars tended to be cheaper during the 3 years I lived there in the 80's. There's a lot of close by vacation options that tend to give locals VERY good deals. HI probably has the best treatment of locals for tourist type things that I've seen and that includes considering Florida. Restaurants can be more but there are many good reasonable options once you learn them. As you noted, real estate and income taxes tend to be artificially low comparatively.