Ebates Coupons and Cash Back
Page 1 of 2 12 LastLast
Results 1 to 10 of 13

Thread: New tax imposed on timeshares in the US Virgin Islands

  1. #1
    Diamond Club Contributor rikkis_playpen's Avatar
    Join Date
    May 2008
    Location
    Orlando, Florida
    Posts
    2,440

    New tax imposed on timeshares in the US Virgin Islands

    Governor Kenneth Mapp recently signed five bills into law, among them key elements of the revised Revenue Enhancement and Economic Recovery Act, widely known as the sin tax bill. The new laws increase taxes on alcoholic beverages, sugary carbonated beverages, cigarettes, and timeshare unit owners. During his press conference, the governor said that the sin tax bill will produce an additional $8 million in tax revenue between May 1 and September 30.

    The new tax imposes an environmental/infrastructure impact fee levied at $25 per day of occupancy by the owner/user in the timeshare unit. The new fee will be collected by the resort and must be transmitted and paid within 30 days following the last day of the month concerned. For a weekly timeshare interval, this single tax adds another $175 in fees to an already overburdened ownership base.

    Timeshares that will be impacted by this include:
    Bluebeard's Beach Club
    Bluebeard's Castle
    Divi Carina Bay
    Elysian Beach Resort
    Hotel on the Cay
    Magens Point
    Margaritaville Vacation Club by Wyndham at St Thomas
    Marriott Frenchman's Cove
    Sapphire Beach Resort
    Ritz Carlton- St Thomas

    The new sin taxes are intended to raise funds to keep government agencies open amid ongoing budget shortfalls, and also to reassure markets that have downgraded the government's debt rating and are no longer lending to the territory. It is interesting to note, however, that the island's governor vetoed parts of the tax bill which sought to impose additional austerity measures on the Executive Branch of government.

    Those vetoed provisions would have:

    – Prohibited the use of nonessential government vehicles after the end of the work day;
    – Mandated a 30 percent reduction in vehicle use;
    – Required government cell phones be returned within 30 days;
    – Mandated that agencies are to coordinate with entities that have teleconferencing to meet by teleconference instead of paying for members to travel between islands;
    – Prohibited government officials from staying overnight in hotels on holidays;
    – Limited government fuel use to 10 gallons every two days and mandate users of vehicles to maintain fuel logs and turn them over to Property and Procurement for compilation.
    my travel website: Vacation-Times.org.

    "A vacation is what you take when you can no longer take what you’ve been taking."
    ~Earl Wilson

  2. #2
    Silver Contributor and supermoderator GrayFal's Avatar
    Join Date
    Jun 2005
    Posts
    24,131
    Westin St John

  3. #3
    Worldmark has units at the elysian, and they already have a fairly substantial energy fee. Adding the tax makes it one of the most expensive resorts in the network. I have to think this will hurt occupancy, partially offsetting the point of the tax.

    I am also not impressed that timeshares got lumped into a sin tax. Drinking, gambling, smoking, timesharing, one of these is not like the others (or maybe it is also addictive, bit I don't think it's bad for you...)

  4. #4
    I own at Hotel on the Cay, Been paying MF every year and have not gone back in 10 years.
    Timeshareforums Shirts and Mugs on sale now! http://www.cafepress.com/ts4ms

  5. #5
    Diamond Club Contributor rikkis_playpen's Avatar
    Join Date
    May 2008
    Location
    Orlando, Florida
    Posts
    2,440
    I always thought that Hotel on the Cay was an interesting property, and those resale listings sold very quickly back in the early 2000's, but I haven't seen any activity there for some time. The staff was always wonderful to work with and seemed very supportive of the secondary market. The biggest delay was getting Phillip (memory is a bit fuzzy on their names so I apologize if I whiffed on the name) to cross over to the mainland to pick up and send transfer letters. The guy was also the activity director, so I always imagined him crossing over on a kayak!

    Seems like the last ten years the increasing fees really hurt that property. This tax will just make it worse.... ARDA-ROC filed a lawsuit to try and get the fee declared unconstitutional- but unless that judge grants a stay to stop implementation, the damage to small resorts will be significant long before the case ever completes. Unfortunately, with the severe financial trouble on the island- I don't have much faith that a local judge will attempt to stop collection and risk insolvency. If the current government runs out of money, I believe a federal oversight board from the US would take over as we saw in Puerto Rico. While that might be beneficial in the long run- no local islander would be happy with outsiders taking over their government finances.
    my travel website: Vacation-Times.org.

    "A vacation is what you take when you can no longer take what you’ve been taking."
    ~Earl Wilson

  6. #6
    Quote Originally Posted by bizaro86 View Post
    Worldmark has units at the elysian, and they already have a fairly substantial energy fee. Adding the tax makes it one of the most expensive resorts in the network. I have to think this will hurt occupancy, partially offsetting the point of the tax.

    I am also not impressed that timeshares got lumped into a sin tax. Drinking, gambling, smoking, timesharing, one of these is not like the others (or maybe it is also addictive, bit I don't think it's bad for you...)
    It looks like all the WM inventory are studio. I don't know what the resort was before WM bought some units but it could be an old motel converted into small WM units regarding the WM inventory. Maybe Wyndham has larger units at this resort, idk.

  7. #7
    Quote Originally Posted by bigfrank View Post
    I own at Hotel on the Cay, Been paying MF every year and have not gone back in 10 years.
    So what are you doing with this ? Renting it out ?

  8. #8
    Quote Originally Posted by bigfrank View Post
    I own at Hotel on the Cay, Been paying MF every year and have not gone back in 10 years.
    That place looks very neat. I have added it to my bucket list, as the beach/location seem worth a trip.

  9. #9
    Quote Originally Posted by easyrider View Post
    So what are you doing with this ? Renting it out ?
    Let me know if you are interested in going, just pay the MF
    Timeshareforums Shirts and Mugs on sale now! http://www.cafepress.com/ts4ms

  10. #10
    Super Moderator chriskre's Avatar
    Join Date
    Apr 2009
    Location
    Miami, FL
    Posts
    10,728
    Well this really sucks for the owners.
    I was hoping to go to St. Thomas again next year.

    Are they trying to force these resorts into default?
    I imagine hotels would bring in alot more revenue
    than timeshares so maybe they want them gone.

    I'm seeing the same sort of sentiment here with
    the older timeshares. The land is just to valuable
    to leave as an old frumpy dumpy converted motel
    TS. I know my days are numbered in my little
    happy place in the sand. Trump already took one
    of my favorites here in Miami beach and Hollywood
    beach is just up the road where the new Margaritaville
    is.

    Even my home condo where I live is being eyed by the
    Russians. We are just sitting on a much too valuable
    piece of real estate. I'm afraid our days are numbered
    here too. I just hope we can cash out big time when the
    day comes. It won't be cheap to replace this lifestyle.

Page 1 of 2 12 LastLast

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •