Orlando associate Andrew Fisher and partner Kurt Gruber co-authored an article, "Florida Legislature Takes Action on Transient Accommodation Tax Issue," which was published in the October 2009 issue of Developments magazine, a publication of the American Resort Development Association (ARDA).
According to Fisher and Gruber, as of July 1, 2009, "Florida House Bill 61 ('HB 61') (approved by Governor Crist, Chapter 2009-133) became effective, and Florida's tax laws were amended to clarify that the use by an owner or an owner's guest of a timeshare accommodation located at the owner's timeshare resort (or located at another resort and obtained through an exchange program) is not subject to Florida's sales and tourist development taxes. Obtaining passage of HB 61 was the culmination of years of effort by ARDA-Florida to navigate difficult tax waters, while fending off local governments strapped for revenue, wrestling special interest groups with competing agendas, and cajoling legislators and various revenue authorities." The article goes on to provide background on the various tax provisions within the state and clarifies what situations are impacted by HB 61, with regard to timeshare owner use and exchange of timeshare accommodations.
The authors also provide information on two other areas affected by HB 61: debt cancellation and Chapter 721 amendments. According to Fisher and Gruber, "HB 61 expands the list of entities authorized to offer debt cancellation products without deeming those products to be insurance to include the sellers of timeshare interests as well as the parents, subsidiaries, or affiliated entities of the sellers. It is hoped that by allowing debt cancellation products to be made more readily available to timeshare consumers, more consumers will be comfortable in making a purchase decision."
"HB 61 amends Chapter 721 in three different areas," according to the authors. "Not all of these amendments were placed in the bill at the request of ARDA-Florida, and while these amendments may not appear significant on the surface, they do touch on important aspects of the regulation of timeshare products." The remainder of the article details the amendments.
Click here to read the full article by Fisher and Gruber.