Post by BWV Dreamin on Apr 27, 2023 7:13:24 GMT -5
mickeyblog.com/2023/04/25/a-new-florida-bill-would-give-timeshare-owners-a-tax-break/
There is much discussion as to how this bill could POSSIBLY reduce some DVC taxes as it relates to resale assessments. It’s a little hard getting through all the adds. But this read gives us something to think about.
A lawyer on another website actually broke down their thoughts on this;
This could ultimately increase your DVC taxes but potentially not in the way many may think. Currently, resale prices are a key factor in determining valuations for timeshares in Florida as long as there are many resales Of the resorts that have them. If the appraiser believes there is insufficient resale information, it uses original sales prices, i.e., the prices when sold new by the developer rather than resale prices.
Since DVC has lots of resales, the appraiser has that information to do evaluations. Thus, requiring the appraiser to use resales is probably not going to really change the appraisal methodology already being used for DVC.
The bill would allow timeshare owners to challenge appraisal values if the timeshare owner comes up with a different evaluation based on a “reasonable” number of resales of other like timeshares based on Uniform Standards of Professional Appraisal Practice, that evaluate properties based on resale values and require only a minimum of three similar sales to be able to do the evaluation. That low-number standard, applicable to homes, has usually not been followed by appraisers appraising timeshares.
The possible effect of the new law is to greatly reduce the appraised value of the many timeshares to which the appraiser is currently using original sales numbers because there are too few timeshare sales of a resort because of the lack of any real resale value. How much of an impact the change could have is unclear but numbers being mentioned are a loss in tax revenue of hundreds of millions for the groups of counties that have large numbers of timeshares.
The ultimate impact on DVC may not be on the appraised value of the DVC timeshares, but over time we could see a substantial increase in taxes as counties significantly raise the tax rates applicable to properties in general that are applied to the appraised values, to make up for the revenues lost due to law’s impact on appraisals of timeshares that now have little to no resale value.
There is much discussion as to how this bill could POSSIBLY reduce some DVC taxes as it relates to resale assessments. It’s a little hard getting through all the adds. But this read gives us something to think about.
A lawyer on another website actually broke down their thoughts on this;
This could ultimately increase your DVC taxes but potentially not in the way many may think. Currently, resale prices are a key factor in determining valuations for timeshares in Florida as long as there are many resales Of the resorts that have them. If the appraiser believes there is insufficient resale information, it uses original sales prices, i.e., the prices when sold new by the developer rather than resale prices.
Since DVC has lots of resales, the appraiser has that information to do evaluations. Thus, requiring the appraiser to use resales is probably not going to really change the appraisal methodology already being used for DVC.
The bill would allow timeshare owners to challenge appraisal values if the timeshare owner comes up with a different evaluation based on a “reasonable” number of resales of other like timeshares based on Uniform Standards of Professional Appraisal Practice, that evaluate properties based on resale values and require only a minimum of three similar sales to be able to do the evaluation. That low-number standard, applicable to homes, has usually not been followed by appraisers appraising timeshares.
The possible effect of the new law is to greatly reduce the appraised value of the many timeshares to which the appraiser is currently using original sales numbers because there are too few timeshare sales of a resort because of the lack of any real resale value. How much of an impact the change could have is unclear but numbers being mentioned are a loss in tax revenue of hundreds of millions for the groups of counties that have large numbers of timeshares.
The ultimate impact on DVC may not be on the appraised value of the DVC timeshares, but over time we could see a substantial increase in taxes as counties significantly raise the tax rates applicable to properties in general that are applied to the appraised values, to make up for the revenues lost due to law’s impact on appraisals of timeshares that now have little to no resale value.
