| 1 | A bill to be entitled |
| 2 | An act relating to timeshare resorts; amending ss. |
| 3 | 125.0104, 125.0108, 212.03, and 212.0305, F.S.; revising |
| 4 | application of provisions imposing certain taxes upon |
| 5 | consideration paid for occupancy of certain timeshare |
| 6 | resort products; providing application and construction; |
| 7 | amending s. 721.07, F.S.; specifying additional |
| 8 | information required in certain public offering statements |
| 9 | for timeshare plans; amending s. 721.20, F.S.; requiring |
| 10 | resale service providers to provide certain fee or cost |
| 11 | and listings information to timeshare interest owners; |
| 12 | specifying that failure to disclose constitutes an unfair |
| 13 | and deceptive trade practice; providing that certain |
| 14 | contracts are void and purchasers are entitled to refunds |
| 15 | of certain moneys; providing an effective date. |
| 16 |
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| 17 | Be It Enacted by the Legislature of the State of Florida: |
| 18 |
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| 19 | Section 1. Paragraph (a) of subsection (3) of section |
| 20 | 125.0104, Florida Statutes, is amended to read: |
| 21 | 125.0104 Tourist development tax; procedure for levying; |
| 22 | authorized uses; referendum; enforcement.-- |
| 23 | (3) TAXABLE PRIVILEGES; EXEMPTIONS; LEVY; RATE.-- |
| 24 | (a)1. It is declared to be the intent of the Legislature |
| 25 | that every person who rents, leases, or lets for consideration |
| 26 | any living quarters or accommodations in any hotel, apartment |
| 27 | hotel, motel, resort motel, apartment, apartment motel, |
| 28 | roominghouse, mobile home park, recreational vehicle park, or |
| 29 | condominium, or timeshare resort for a term of 6 months or less |
| 30 | is exercising a privilege which is subject to taxation under |
| 31 | this section, unless such person rents, leases, or lets for |
| 32 | consideration any living quarters or accommodations which are |
| 33 | exempt according to the provisions of chapter 212. |
| 34 | 2.a. Tax shall be due on the consideration paid for |
| 35 | occupancy in the county pursuant to a regulated short-term |
| 36 | product, as defined in s. 721.05, or occupancy in the county |
| 37 | pursuant to a product that would be deemed a regulated short- |
| 38 | term product if the agreement to purchase the short-term right |
| 39 | were executed in this state. Such tax shall be collected on the |
| 40 | last day of occupancy within the county unless such |
| 41 | consideration is applied to the purchase of a timeshare estate. |
| 42 | The occupancy of an accommodation of a timeshare resort pursuant |
| 43 | to a timeshare plan, a multisite timeshare plan, or an exchange |
| 44 | transaction in an exchange program, as defined in s. 721.05, by |
| 45 | the owner of a timeshare interest or such owner's guest, which |
| 46 | guest is not paying monetary consideration to the owner or to a |
| 47 | third party for the benefit of the owner, is not a privilege |
| 48 | subject to taxation under this section. A membership or |
| 49 | transaction fee paid by a timeshare owner that does not provide |
| 50 | the timeshare owner with the right to occupy any specific |
| 51 | timeshare unit but merely provides the timeshare owner with the |
| 52 | opportunity to exchange a timeshare interest through an exchange |
| 53 | program is a service charge and not subject to taxation under |
| 54 | this section. |
| 55 | b. Consideration paid for the purchase of a timeshare |
| 56 | license in a timeshare plan, as defined in s. 721.05, is rent |
| 57 | subject to taxation under this section. |
| 58 | Section 2. Paragraph (b) of subsection (1) of section |
| 59 | 125.0108, Florida Statutes, is amended to read: |
| 60 | 125.0108 Areas of critical state concern; tourist impact |
| 61 | tax.-- |
| 62 | (1) |
| 63 | (b)1. It is declared to be the intent of the Legislature |
| 64 | that every person who rents, leases, or lets for consideration |
| 65 | any living quarters or accommodations in any hotel, apartment |
| 66 | hotel, motel, resort motel, apartment, apartment motel, |
| 67 | roominghouse, mobile home park, recreational vehicle park, or |
| 68 | condominium, or timeshare resort for a term of 6 months or less, |
| 69 | unless such establishment is exempt from the tax imposed by s. |
| 70 | 212.03, is exercising a taxable privilege on the proceeds |
| 71 | therefrom under this section. |
| 72 | 2.a. Tax shall be due on the consideration paid for |
| 73 | occupancy in the county pursuant to a regulated short-term |
| 74 | product, as defined in s. 721.05, or occupancy in the county |
| 75 | pursuant to a product that would be deemed a regulated short- |
| 76 | term product if the agreement to purchase the short-term right |
| 77 | were executed in this state. Such tax shall be collected on the |
| 78 | last day of occupancy within the county unless such |
| 79 | consideration is applied to the purchase of a timeshare estate. |
| 80 | The occupancy of an accommodation of a timeshare resort pursuant |
| 81 | to a timeshare plan, a multisite timeshare plan, or an exchange |
| 82 | transaction in an exchange program, as defined in s. 721.05, by |
| 83 | the owner of a timeshare interest or such owner's guest, which |
| 84 | guest is not paying monetary consideration to the owner or to a |
| 85 | third party for the benefit of the owner, is not a privilege |
| 86 | subject to taxation under this section. A membership or |
| 87 | transaction fee paid by a timeshare owner that does not provide |
| 88 | the timeshare owner with the right to occupy any specific |
| 89 | timeshare unit but merely provides the timeshare owner with the |
| 90 | opportunity to exchange a timeshare interest through an exchange |
| 91 | program is a service charge and not subject to taxation under |
| 92 | this section. |
| 93 | b. Consideration paid for the purchase of a timeshare |
| 94 | license in a timeshare plan, as defined in s. 721.05, is rent |
| 95 | subject to taxation under this section. |
| 96 | Section 3. Subsection (1) of section 212.03, Florida |
| 97 | Statutes, is amended to read: |
| 98 | 212.03 Transient rentals tax; rate, procedure, |
| 99 | enforcement, exemptions.-- |
| 100 | (1)(a) It is hereby declared to be the legislative intent |
| 101 | that every person is exercising a taxable privilege who engages |
| 102 | in the business of renting, leasing, letting, or granting a |
| 103 | license to use any living quarters or sleeping or housekeeping |
| 104 | accommodations in, from, or a part of, or in connection with any |
| 105 | hotel, apartment house, roominghouse, or tourist or trailer |
| 106 | camp, mobile home park, recreational vehicle park, condominium, |
| 107 | or timeshare resort. However, any person who rents, leases, |
| 108 | lets, or grants a license to others to use, occupy, or enter |
| 109 | upon any living quarters or sleeping or housekeeping |
| 110 | accommodations in any apartment house houses, roominghouse |
| 111 | roominghouses, tourist camp camps, or trailer camp camps, mobile |
| 112 | home park, recreational vehicle park, condominium, or timeshare |
| 113 | resort and who exclusively enters into a bona fide written |
| 114 | agreement for continuous residence for longer than 6 months in |
| 115 | duration at such property is not exercising a taxable privilege. |
| 116 | For the exercise of such taxable privilege, a tax is hereby |
| 117 | levied in an amount equal to 6 percent of and on the total |
| 118 | rental charged for such living quarters or sleeping or |
| 119 | housekeeping accommodations by the person charging or collecting |
| 120 | the rental. Such tax shall apply to hotels, apartment houses, |
| 121 | roominghouses, or tourist or trailer camps, mobile home parks, |
| 122 | recreational vehicle parks, condominiums, or timeshare resorts, |
| 123 | whether or not these facilities have there is in connection with |
| 124 | any of the same any dining rooms, cafes, or other places where |
| 125 | meals or lunches are sold or served to guests. |
| 126 | (b)1. Tax shall be due on the consideration paid for |
| 127 | occupancy in the county pursuant to a regulated short-term |
| 128 | product, as defined in s. 721.05, or occupancy in the county |
| 129 | pursuant to a product that would be deemed a regulated short- |
| 130 | term product if the agreement to purchase the short-term right |
| 131 | were executed in this state. Such tax shall be collected on the |
| 132 | last day of occupancy within the county unless such |
| 133 | consideration is applied to the purchase of a timeshare estate. |
| 134 | The occupancy of an accommodation of a timeshare resort pursuant |
| 135 | to a timeshare plan, a multisite timeshare plan, or an exchange |
| 136 | transaction in an exchange program, as defined in s. 721.05, by |
| 137 | the owner of a timeshare interest or such owner's guest, which |
| 138 | guest is not paying monetary consideration to the owner or to a |
| 139 | third party for the benefit of the owner, is not a privilege |
| 140 | subject to taxation under this section. A membership or |
| 141 | transaction fee paid by a timeshare owner that does not provide |
| 142 | the timeshare owner with the right to occupy any specific |
| 143 | timeshare unit but merely provides the timeshare owner with the |
| 144 | opportunity to exchange a timeshare interest through an exchange |
| 145 | program is a service charge and not subject to taxation under |
| 146 | this section. |
| 147 | 2. Consideration paid for the purchase of a timeshare |
| 148 | license in a timeshare plan, as defined in s. 721.05, is rent |
| 149 | subject to taxation under this section. |
| 150 | Section 4. Paragraph (a) of subsection (3) of section |
| 151 | 212.0305, Florida Statutes, is amended to read: |
| 152 | 212.0305 Convention development taxes; intent; |
| 153 | administration; authorization; use of proceeds.-- |
| 154 | (3) APPLICATION; ADMINISTRATION; PENALTIES.-- |
| 155 | (a)1. The convention development tax on transient rentals |
| 156 | imposed by the governing body of any county authorized to so |
| 157 | levy shall apply to the amount of any payment made by any person |
| 158 | to rent, lease, or use for a period of 6 months or less any |
| 159 | living quarters or accommodations in a hotel, apartment hotel, |
| 160 | motel, resort motel, apartment, apartment motel, roominghouse, |
| 161 | tourist or trailer camp, mobile home park, recreational vehicle |
| 162 | park, or condominium, or timeshare resort. When receipt of |
| 163 | consideration is by way of property other than money, the tax |
| 164 | shall be levied and imposed on the fair market value of such |
| 165 | nonmonetary consideration. Any payment made by a person to rent, |
| 166 | lease, or use any living quarters or accommodations which are |
| 167 | exempt from the tax imposed under s. 212.03 shall likewise be |
| 168 | exempt from any tax imposed under this section. |
| 169 | 2.a. Tax shall be due on the consideration paid for |
| 170 | occupancy in the county pursuant to a regulated short-term |
| 171 | product, as defined in s. 721.05, or occupancy in the county |
| 172 | pursuant to a product that would be deemed a regulated short- |
| 173 | term product if the agreement to purchase the short-term right |
| 174 | were executed in this state. Such tax shall be collected on the |
| 175 | last day of occupancy within the county unless such |
| 176 | consideration is applied to the purchase of a timeshare estate. |
| 177 | The occupancy of an accommodation of a timeshare resort pursuant |
| 178 | to a timeshare plan, a multisite timeshare plan, or an exchange |
| 179 | transaction in an exchange program, as defined in s. 721.05, by |
| 180 | the owner of a timeshare interest or such owner's guest, which |
| 181 | guest is not paying monetary consideration to the owner or to a |
| 182 | third party for the benefit of the owner, is not a privilege |
| 183 | subject to taxation under this section. A membership or |
| 184 | transaction fee paid by a timeshare owner that does not provide |
| 185 | the timeshare owner with the right to occupy any specific |
| 186 | timeshare unit but merely provides the timeshare owner with the |
| 187 | opportunity to exchange a timeshare interest through an exchange |
| 188 | program is a service charge and not subject to taxation under |
| 189 | this section. |
| 190 | b. Consideration paid for the purchase of a timeshare |
| 191 | license in a timeshare plan, as defined in s. 721.05, is rent |
| 192 | subject to taxation under this section. |
| 193 | Section 5. The amendments to sections 125.0104, 125.0108, |
| 194 | 212.03, and 212.0305, Florida Statutes, made by this act are |
| 195 | intended to be clarifying and remedial in nature and do not |
| 196 | provide a basis for assessments of tax, or refunds of tax, for |
| 197 | periods prior to July 1, 2009. |
| 198 | Section 6. Paragraph (ii) is added to subsection (5) of |
| 199 | section 721.07, Florida Statutes, to read: |
| 200 | 721.07 Public offering statement.--Prior to offering any |
| 201 | timeshare plan, the developer must submit a filed public |
| 202 | offering statement to the division for approval as prescribed by |
| 203 | s. 721.03, s. 721.55, or this section. Until the division |
| 204 | approves such filing, any contract regarding the sale of that |
| 205 | timeshare plan is subject to cancellation by the purchaser |
| 206 | pursuant to s. 721.10. |
| 207 | (5) Every filed public offering statement for a timeshare |
| 208 | plan which is not a multisite timeshare plan shall contain the |
| 209 | information required by this subsection. The division is |
| 210 | authorized to provide by rule the method by which a developer |
| 211 | must provide such information to the division. |
| 212 | (ii) A statement that the owner's obligation to pay |
| 213 | assessments continues for as long as he or she owns the |
| 214 | timeshare interest and that when a person inherits a timeshare |
| 215 | interest, that person is responsible for paying those |
| 216 | assessments. |
| 217 | Section 7. Subsection (9) is added to section 721.20, |
| 218 | Florida Statutes, to read: |
| 219 | 721.20 Licensing requirements; suspension or revocation of |
| 220 | license; exceptions to applicability; collection of advance fees |
| 221 | for listings unlawful.-- |
| 222 | (9)(a) Prior to listing or advertising a timeshare |
| 223 | interest for resale, a resale service provider shall provide to |
| 224 | the timeshare interest owner a description of any fees or costs |
| 225 | relating to the advertising, listing, or sale of the timeshare |
| 226 | interest that the timeshare interest owner, or any other person, |
| 227 | must pay to the resale service provider or any third party, when |
| 228 | such fees or costs are due, and the ratio or percentage of the |
| 229 | number of listings of timeshare interests for sale versus the |
| 230 | number of timeshare interests sold by the resale service |
| 231 | provider for each of the previous 2 calendar years. |
| 232 | (b) Failure to disclose this information in writing |
| 233 | constitutes an unfair and deceptive trade practice pursuant to |
| 234 | chapter 501. Any contract entered into in violation of this |
| 235 | subsection is void and the purchaser is entitled to a full |
| 236 | refund of any moneys paid to the resale service provider. |
| 237 | Section 8. This act shall take effect July 1, 2009. |