Who pays taxes at check-in?

I'm in the process of renting my timeshare for the first time. The renter expects me to pay the General Excise Tax and he would pay the Transient Occupancy Tax. What is customary here?

As a renter only I know I have always just paid a flat fee to the person(s) renting the week. No extra's above and beyond that. (except of course things like golfing, boat or water toy rentals etc) This has been my experience from over a dozen plus rentals. If they added any taxes in the weekly rental fee I have no idea. Just know I didn't pay anything upon check in or check out.

After having owned 9 timeshare weeks and performed 25+ exchanges throughout the last several years, I have never heard of anyone paying any sort of taxes at check-in.

I think in some countries there is a surcharge or occupancy tax. I went to Mexico a few years ago and had to pay some sort of tax, it wasn't too much though maybe $20. I've also noticed some resorts in the Bahamas charge a surcharge , for electricity I think they call it, but it's about $20 per day if I remember correctly. You should probably confirm with the resort before you travel. I've never heard of any such fees for resorts in Canada or the US unless it's for optional extras like maid service.

jayjay wrote:

After having owned 9 timeshare weeks and performed 25+ exchanges throughout the last several years, I have never heard of anyone paying any sort of taxes at check-in.

Hi, I'm new at renting out timeshare and am looking for ideas how do you handle taxes when you rent timeshare? Deb T.

I would call the resort to see if they charge a surcharge for anything. If they do, it would be the responsibility of the renter to pay those surcharges upon check-in, but the renter should be notified of any surcharges beforehand.

When people were mentioning paying taxes at check-in, I assumed they meant taxes the owner pays when they pay their yearly maintenance fees. I would call the added on charges at check-in to be surcharges.

debrat42 wrote:

Hi, I'm new at renting out timeshare and am looking for ideas how do you handle taxes when you rent timeshare? Deb T.

The person who is renting the timeshare usually pays the owner one flat fee for the rental.

PLUS, the resorts always ask for a credit card prior to check-in. There are usually service fees, energy fees, and a timeshare govt. fee that is added to the bill, plus any extra meals or incidentals such as phone calls.

The person actually using the room pays for the fees.

Hi Jayjay,

Most Caribbean resorts have local occupancy taxes that are paid by whoever uses the unit. They are added to the bill.

Not to be confused with real estate taxes which are often part of your maintenance fees.

Thanks John for the clarification concerning certain taxes at resorts.

I do know that Disney charges those checking into one of their timeshare resorts a surcharge of $90 for Disney's transportation services, but I had never heard of paying any sort of taxes.

There are also some California, western U.S. and Caribbean resorts that charge a utility surcharge for electricity.

This is something that should be clearly stated in the rental agreement or lease. Last I heard the Disney charge was $ 95 and applied only to those exchanging in.

hennyp wrote:

This is something that should be clearly stated in the rental agreement or lease. Last I heard the Disney charge was $ 95 and applied only to those exchanging in.

========

If the owners don't have to pay this fee at Disney resorts, the person renting out the unit may not even be aware of the charge.

The incoming guest pays the owner for the use of the unit. On site fees, taxes and surcharges regularly collected at check-in are also his responsibility. The owner certainly does not get these! What a mess it would be to try collecting these in advance as part of the rental and then distributing them properly between the resort, the government, etc.!

The owner should tell the renter approximately how much might be involved, if he knows. These fees are usually an overseas or Mexican problem, but there are a few US resorts with mandatory "amenities fees" or other government required extras. Most people take them in stride as one of the costs of travel. MD

adahiscout wrote:

hennyp wrote:

This is something that should be clearly stated in the rental agreement or lease. Last I heard the Disney charge was $ 95 and applied only to those exchanging in.

========

If the owners don't have to pay this fee at Disney resorts, the person renting out the unit may not even be aware of the charge.

The incoming guest pays the owner for the use of the unit. On site fees, taxes and surcharges regularly collected at check-in are also his responsibility. The owner certainly does not get these! What a mess it would be to try collecting these in advance as part of the rental and then distributing them properly between the resort, the government, etc.!

The owner should tell the renter approximately how much might be involved, if he knows. These fees are usually an overseas or Mexican problem, but there are a few US resorts with mandatory "amenities fees" or other government required extras. Most people take them in stride as one of the costs of travel. MD

--------- When I rented out my unit, I offset the rental by the cost of the fees that were to be charged at checkin. I stated in the rental agreement that extra fees were going to be charged and what fees such as housekeeping were optional.

A few years back the Cayman Islands government began imposing an "occupancy tax" for timeshare owners. (Sadly, it is in a country that prides itself on NO income tax. When the hotel business hit a huge slump after 9/11, they found the only faithful visitors they could hit were timeshare owners!) The developers and management companies lobbied quite hard to limit the charges. It stands at US$10 per night of occupancy. Plantation Village and Grand Caymanian require payment via credit card or cash...no checks, paid at check-in or checkout. I witnessed a Redweek renter checking out who had to pay the $70, but must have known that ahead of time.

Another discussion could tackle the telephone charges imposed in different countries. Cayman must be one of the highest! (My cell doesn't work there.)

--------- When I rented out my unit, I offset the rental by the cost of the fees that were to be charged at checkin. I stated in the rental agreement that extra fees were going to be charged and what fees such as housekeeping were optional. ==========

Since we tend to base the rent asked on what our costs are as owners plus (we hope) a little extra, I see no reason to lower it to account for payments beyond our contral which will go to others. Many of the same types of extra charges would be encountered at a hotel. As you say, it is good to give the renter a "heads up" on these charges if you know they exist.

Regarding your reference to housekeeping, I've noticed in reviews that some folks (who have probably been used to hotels) seem shocked to find that nobody makes their beds! Perhaps we owners should consider letting renters know that staying in a timeshare is more like staying at home. Strangers do not pop in and out of your unit to clean, which is good for security and privacy, but means that you do these things yourself. The exception seems to be mainly foreign resorts with very low labor costs--so you have to help the help by tipping. MD

mike1536 wrote:

adahiscout wrote:

--------- When I rented out my unit, I offset the rental by the cost of the fees that were to be charged at checkin. I stated in the rental agreement that extra fees were going to be charged and what fees such as housekeeping were optional.

==========

Since we tend to base the rent asked on what our costs are as owners plus (we hope) a little extra, I see no reason to lower it to account for payments beyond our contral which will go to others. Many of the same types of extra charges would be encountered at a hotel. As you say, it is good to give the renter a "heads up" on these charges if you know they exist.

Regarding your reference to housekeeping, I've noticed in reviews that some folks (who have probably been used to hotels) seem shocked to find that nobody makes their beds! Perhaps we owners should consider letting renters know that staying in a timeshare is more like staying at home. Strangers do not pop in and out of your unit to clean, which is good for security and privacy, but means that you do these things yourself. The exception seems to be mainly foreign resorts with very low labor costs--so you have to help the help by tipping. MD

adahiscout wrote:

--------- When I rented out my unit, I offset the rental by the cost of the fees that were to be charged at checkin. I stated in the rental agreement that extra fees were going to be charged and what fees such as housekeeping were optional.

==========

Since we tend to base the rent asked on what our costs are as owners plus (we hope) a little extra, I see no reason to lower it to account for payments beyond our contral which will go to others. Many of the same types of extra charges would be encountered at a hotel. As you say, it is good to give the renter a "heads up" on these charges if you know they exist.

Regarding your reference to housekeeping, I've noticed in reviews that some folks (who have probably been used to hotels) seem shocked to find that nobody makes their beds! Perhaps we owners should consider letting renters know that staying in a timeshare is more like staying at home. Strangers do not pop in and out of your unit to clean, which is good for security and privacy, but means that you do these things yourself. The exception seems to be mainly foreign resorts with very low labor costs--so you have to help the help by tipping. MD -------

mike1536 wrote:

adahiscout wrote:

--------- When I rented out my unit, I offset the rental by the cost of the fees that were to be charged at checkin. I stated in the rental agreement that extra fees were going to be charged and what fees such as housekeeping were optional.

==========

Since we tend to base the rent asked on what our costs are as owners plus (we hope) a little extra, I see no reason to lower it to account for payments beyond our contral which will go to others. Many of the same types of extra charges would be encountered at a hotel. As you say, it is good to give the renter a "heads up" on these charges if you know they exist.

Regarding your reference to housekeeping, I've noticed in reviews that some folks (who have probably been used to hotels) seem shocked to find that nobody makes their beds! Perhaps we owners should consider letting renters know that staying in a timeshare is more like staying at home. Strangers do not pop in and out of your unit to clean, which is good for security and privacy, but means that you do these things yourself. The exception seems to be mainly foreign resorts with very low labor costs--so you have to help the help by tipping. MD

------- I agree with your rationale about letting the renters pay the taxes, but in my case I was able to get a sunstantial amount above and beyond my annual MF and the cost I absorbed was minimal. Any optional fees were listed in the Rental Agreement and were the responsibility of the renter. I also noted in the rental agreement that my unit was NOT a hotel and housekeeping, linen exchange, etc were optional.

mike1536 wrote:

mike1536 wrote:

adahiscout wrote:

--------- When I rented out my unit, I offset the rental by the cost of the fees that were to be charged at checkin. I stated in the rental agreement that extra fees were going to be charged and what fees such as housekeeping were optional.

==========

Since we tend to base the rent asked on what our costs are as owners plus (we hope) a little extra, I see no reason to lower it to account for payments beyond our contral which will go to others. Many of the same types of extra charges would be encountered at a hotel. As you say, it is good to give the renter a "heads up" on these charges if you know they exist.

Regarding your reference to housekeeping, I've noticed in reviews that some folks (who have probably been used to hotels) seem shocked to find that nobody makes their beds! Perhaps we owners should consider letting renters know that staying in a timeshare is more like staying at home. Strangers do not pop in and out of your unit to clean, which is good for security and privacy, but means that you do these things yourself. The exception seems to be mainly foreign resorts with very low labor costs--so you have to help the help by tipping. MD

-------

I agree with your rationale about letting the renters pay the taxes, but in my case I was able to get a sunstantial amount above and beyond my annual MF and the cost I absorbed was minimal. Any optional fees were listed in the Rental Agreement and were the responsibility of the renter. I also noted in the rental agreement that my unit was NOT a hotel and housekeeping, linen exchange, etc were optional. ==========

So did you send the taxes to the resort in advance of the renter's check-in? MD

jayjay wrote:

After having owned 9 timeshare weeks and performed 25+ exchanges throughout the last several years, I have never heard of anyone paying any sort of taxes at check-in.

Apparantly in Hawaii, they charge a room tax. I am sending someone there next month and I was informed that there will be a tax charged to them.

adahiscout wrote:

mike1536 wrote:

mike1536 wrote:

adahiscout wrote:

--------- When I rented out my unit, I offset the rental by the cost of the fees that were to be charged at checkin. I stated in the rental agreement that extra fees were going to be charged and what fees such as housekeeping were optional.

==========

Since we tend to base the rent asked on what our costs are as owners plus (we hope) a little extra, I see no reason to lower it to account for payments beyond our contral which will go to others. Many of the same types of extra charges would be encountered at a hotel. As you say, it is good to give the renter a "heads up" on these charges if you know they exist.

Regarding your reference to housekeeping, I've noticed in reviews that some folks (who have probably been used to hotels) seem shocked to find that nobody makes their beds! Perhaps we owners should consider letting renters know that staying in a timeshare is more like staying at home. Strangers do not pop in and out of your unit to clean, which is good for security and privacy, but means that you do these things yourself. The exception seems to be mainly foreign resorts with very low labor costs--so you have to help the help by tipping. MD

-------

I agree with your rationale about letting the renters pay the taxes, but in my case I was able to get a sunstantial amount above and beyond my annual MF and the cost I absorbed was minimal. Any optional fees were listed in the Rental Agreement and were the responsibility of the renter. I also noted in the rental agreement that my unit was NOT a hotel and housekeeping, linen exchange, etc were optional.

==========

So did you send the taxes to the resort in advance of the renter's check-in? MD ---------- No, I deducted the fees when I asked for payment, and informed them that they were responsible to pay the fees at check-in.