A House committee Wednesday approved a bill that would lead to changes in the valuation of timeshare units, potentially costing local governments and school districts an estimated $171.5 million next year.
The House Ways & Means Committee voted 18-4 to support the bill (HB 471), filed by Rep. Randy Fine, R-Brevard County. The Senate Regulated Industries Committee this month approved the Senate version of the bill (SB 886).
The proposed changes come after lawsuits about the valuation of timeshare units. Under current law, property appraisers are required to initially look at the resale values of timeshare properties.
If appraisers determine that an inadequate number of resales have happened to determine fair-market value, they apply a formula that involves deducting “usual and reasonable fees and costs of the sale” from the original purchase price, according to a House staff analysis.
The proposed changes would apply to units that are part of timeshare developments with more than 300 units. The bill could lead to appraisers deferring to taxpayers for determining whether the number of resales is adequate to determine valuation, the analysis said.
Fine and other supporters said some timeshare units have little resale value and that the current law leads to them getting hit with tax bills that are too large.
“If you can only sell a timeshare for $100, then that is what it is worth,” Fine said. But Rep. Anna Eskamani, D-Orlando, said the bill would benefit large timeshare companies and could particularly affect tax revenues in Orange and Osceola counties.
A House staff analysis estimated that it would reduce local-government tax revenues statewide by $65.6 million in the 2024-2025 fiscal year and school-tax revenues by $105.9 million. The lost tax dollars would recur in future years.
“I have some heartburn that we continue taking money away from local governments,” Rep Dianne Hart, D-Tampa, said.