Big Win for Timeshare Owners in California: Court Rules Counties Must Justify Tax Fees

A recent California court decision is great news for timeshare owners across the state. In a case brought by timeshare owners in Riverside County, the Court of Appeal ruled that the County was charging an unfair and excessive fee for the way it assessed property taxes on timeshare units. This win will likely save timeshare owners across California millions in unnecessary charges.

The Background

In California, timeshare owners have the option to be taxed individually instead of having their timeshare interests taxed as a group through their association. The owners in this case chose individual assessments. However, Riverside County charged each of them a $23 annual fee for the extra work of assessing their units separately.

The owners argued that the $23 fee was too high and wasn’t based on the actual cost of work. They sued the County, claiming the fee was essentially a hidden tax—which, under California law, would require voter approval.

The Ruling

The Court agreed with the timeshare owners. It found that the County’s math didn’t add up. The County used its entire assessor’s office budget and simply divided that by the total number of properties, without showing what it actually costs to assess individual timeshare units. The Court pointed out several issues:

• The fee included costs unrelated to timeshare assessments, like other countywide services.
• The County didn’t prove how much work actually goes into assessing a timeshare unit separately.
• Timeshare assessments tend to be quicker and more efficient than other property types, but the County charged as if they were the same.

In short, the $23 fee didn’t reflect the real, direct cost of providing the service. Because of this, the Court said the fee was unconstitutional—it was effectively a tax that hadn’t been approved by voters.

What This Means for Owners and Developers

This ruling sets a precedent for all California counties. Any fee a county charges to individually assess a timeshare must be based on real, trackable costs—not just broad estimates. Counties now have to do the math and show their work.

The result? Timeshare owners in California who elect to be assessed individually should expect lower, more accurate fees—and potentially refunds for past overcharges. Developers also benefit, as this reduces financial burdens on their customers and supports fairness in how local governments handle assessments.