Florida House members are moving forward quickly with a proposal that would affect how timeshare units are valued, potentially reducing property-tax revenues by more than $200 million a year.
The House Commerce Committee on Monday approved the bill (HB 451), which was approved Friday by the Ways & Means Committee. It is now positioned to go to the full House.
A House staff analysis said the bill would reduce school property taxes by an estimated $77.5 million a year and other types of property taxes by an estimated $130.7 million.
The bill, sponsored by Rep. Randy Fine, R-Brevard County, comes after litigation about how to value timeshare units, the House analysis said.
Currently, property appraisers look at the resale market to determine taxable values of units. If an inadequate number of resales exist for such determinations, they look at original purchase prices and make certain deductions, according to the staff analysis.
The bill would apply in tax appeals when taxpayers argue adequate numbers of resales exist. In such situations, the number of resales “shall be considered adequate when a reasonable number of resales are provided by the taxpayer” and are supported by national standards.
Fine called the bill a “matter of fundamental fairness” and said values of timeshares often drop after purchase. He also said timeshare units are often owned by middle- and lower-income people, who shouldn’t be forced to pay taxes on inflated values of units.
“Millionaires and billionaires don’t own timeshares,” Fine said.
But Loren Levy, general counsel of the Property Appraisers’ Association of Florida, said the bill would lead to a significant change. He pointed to problems such as many timeshare resales not being “arms-length transactions.”
The Senate version of the bill (SB 1450) has been approved by one committee.