CRO stays booked from DVC point pool-double taxed?

[Johnnie Fedora]

All the talk about point value and points for exchanges got me thinking about how DVC exchanges really compute moneywise.

When you trade your points for an exchange and DVC turns the points over to CRO to rent for cash, why does Disney charge the guest sales tax a DVC resort stay booked using members "traded-in" points?? Isn't CRO just the middle man for renting out your real estate interest?

Any thoughts?

 

[spiceycat]

State law - WDW is a business - so taxes are charged by Fl and the various countries - they and therefore you have to paid taxes on cash.

the points are not a cash basis - so when you use your points that is what WDW records not cash.

Hey even Interval International use to not make you pay the taxes on their "getaways" that changed this year.

 

[Cruelladeville]

When you trade your points they don't go to CRO to rent, they go into II or whatever, and that's how some people can trade into a DVC unit. I think the only time CRO rents out the room from the points is when you have traded to a different Disney resort.

 

[spiceycat]

I think (could be wrong) that unless it goes to II then CRO does get it - WDW has proven that they can generally get a good price for their rooms. So I think that the cruises, adventure and concerige would all go to CRO.

 

[drusba]

Person or company who is in the "business" of renting resort property must collect and pay the resort rental taxes. You trade out and then if Disney, whether through CRO or otherwise, rents the room for cash, the tax must be collected and paid. It would be the same thing if you as an owner repeatedly rented rather than using your points yourself. If you did it enough and on a regular basis to the point you could be considered to be in the "business" of renting resort property, you would have to collect and pay the tax.