Property Taxes

[U2FanHfx]

Hi All,

A friend of mine just told me that when they toured SSR recently, the guide told them that they would have to pay property taxes on top of their yearly dues. Is this true? If so, they said that this is what pushed them not to buy in and it has also concerned me about my recent purchase.

Regs,

CJM

 

[BillPA]

The tax in included in the dues and it is NOT a large amout. It is less than $1 a point of the dues. If that is why they backed out, my guess they just couldn't afford DVC to start with.

 

[cobbler]

Yep, its included in your dues. And if they underestimate you may have to pay a larger amount the next year. If you have your dues done in monthly payments your 1st payment of the year may be larger to pay the difference in the underestimated property taxes.

 

[Doug Wolfe]

I agree with BillPA. The property tax is so minimal, if that made them decide not to buy, they could not afford DVC in the first place. The tax is built into your annual dues.

Check any other timeshare program, Hilton Grand Vacations for example, and you pay property taxes. This is not something DVC just dreamed up, the government wants their tax payments. You have been paying the tax as part of your dues, you just didn't know it. Ask your accountant if you can deduct your property tax payments to DVC.

By the way, ask your friend about the taxes he pays when he checks into a hotel. Does he cancel his vacations because he had to pay hotel or tourism taxes? Probably not.

The tax for hotel rooms at Disney is 11.50%, a tax DVC members do not pay. Your friend is short sighted to say the least.

 

[Snow Shoe]

My tax accountant takes our DVC taxes off of our income tax every year. The IRS considers our BWV as a "second home" and so it is eligable for this.

 

[U2FanHfx]

Thanks all! I didn't think it made sense but I also didn't want a $1000 tax bill

My friend is obviously wrong on this point.

Regs,

CJM

 

[dvc at last !]

I agree -
the taxes are in the yearly dues. DVC is considered a second home and
you can deduct on your Income Tax.

 

[Scratch42]

My tax accountant takes our DVC taxes off of our income tax every year. The IRS considers our BWV as a "second home" and so it is eligable for this.

We are not allowed to do that in Canada!

j

 

[Caskbill]

It's also possible your friend misunderstood their guide.

Property taxes are indeed on top of the Resort's annual Maintenance and operating fees. However, ALL of these together make the Annual Dues that we pay to Disney.

My guess is the guide said property taxes are in addition to the maintenance fees, and your friend heard it as property taxes are in addition to annual dues.

Basically, semantics on the distinction between taxes, maintenance fees, operational fees, and the term Annual Dues.

Even here on the boards, posters often use the terms Annual Dues and Maintenance Fees interchangeably. But in reality, maintenance fees are a portion (mathematically a subset) of the Annual dues.

 

[U2FanHfx]

Thanks all for your input!

Who knows, we may be welcoming another family home soon.

Regs,

CJM