Renting and Taxes???

[Sammie]

I don't want to get into the right or wrong of renting, or what constitutes commercial renting, but I am seriously interested in how members rent and not have to pay the resort/bed tax.

We recently rented a gulf front condo on the beach from an owner using VRBO and we always have to pay the resort/bed tax which is 11% where we stayed.

How and why is DVC different?

Again no debate, just someone that knows enough about the tax laws to give an educated answers.

Thanks

 

[Sammie]

Ok, no one knows or not saying.

 

[Deb & Bill]

We also rented a week at a timeshare from an owner on the Gulf Coast. Our rental agreement didn't say anything about an additional tax to be paid. Was that spelled out in your agreement with the owner? Or were you surprised with that when you checked in?

 

[CarolMN]

I don't want to get into the right or wrong of renting, or what constitutes commercial renting, but I am seriously interested in how members rent and not have to pay the resort/bed tax.

We recently rented a gulf front condo on the beach from an owner using VRBO and we always have to pay the resort/bed tax which is 11% where we stayed.

How and why is DVC different?

Again no debate, just someone that knows enough about the tax laws to give an educated answers.

Thanks

I think most owners who rent thier timeshares just don't report the transaction. Kind of like having a garage sale - you're supposed to pay sales tax but hardly anyone does.

As far as VRBO, doesn't an organization/management group handle the transaction details and take care of the website? They probably report, collect and send in the taxes.

AFAIK, the county and city governments expect those who rent timesharesto pay the tax, but apparently, the governmental units do very little, if any, enforcement in that area. That may change if the receipts continue to decline. There have been articles speculating that the hotels/motels/resorts are generating less tax revenue due to the proliferation of timeshares.

JMHO. YMMV.