Timeshare Association's Suit Against U.S. Virgin Islands Tax Survives Challenge

News / October 12, 2018

BakerHosteter scored a preliminary win in a case for the American Resort Development Association (ARDA) in the district court for the U.S. Virgin Islands defeating the government’s motion to dismiss. ARDA is challenging the constitutionality of a $25-dollar-per-day fee on timeshare owners for each day that they occupy their timeshare units in the Virgin Islands. The fee is in addition to territorial real property taxes that the Virgin Islands applies to timeshare units at a rate that is nearly double the rate on any other class of real property. The government filed a motion to dismiss the case contending that the action had to be filed in the territorial court. The district court denied the motion to dismiss, and retained jurisdiction of the case. Partner Kevin Johnson leads the BakerHostetler tax litigation team representing ARDA in this matter and is mentioned in an Oct. 2, 2018, article in Tax Notes, “U.S.V.I. Time-Share Tax Case Survives Procedural Challenge.”

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