ARDA-ROC FIghts Property Tax Increase in TN

2019-03-01

Issue Brief

Tennessee is a key timeshare state with 31 resorts and over 6,000 units. Timeshare owners are comparable to owners of second homes and have traditionally been taxed that way in TN. Recently the property tax assessors in the two largest timeshare areas of Sevier and Davidson Counties have taken the position that timeshare should be classified as a commercial use for ad valorem taxes.   

Impact

The effect of this change would change the formula for determining the taxes due from 25% of assessed value to 40% of assessed value. The ability for an owner to sell or market their interest when they no longer wish to own it is greatly affected by the fees and costs to own. Increases in property taxes will result in higher maintenance fees which average approximate $750/year per interval. 

Position/Call to Action

ROC is running a Bill (HB 85) this legislative session that would clarify that timeshare intervals should be assessed at the Residential rate of 25% of assessed value. The bill was recently introduced in the House and we are actively advocating for its passage.

  

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