| 1 | A bill to be entitled |
| 2 | An act relating to temporary accommodations; 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. 624.605, F.S.; expanding the list of entities |
| 8 | authorized to offer debt cancellation products for |
| 9 | purposes of the definition of the term "casualty |
| 10 | insurance" to include sellers of timeshare interests; |
| 11 | amending s. 721.05, F.S.; revising a definition; amending |
| 12 | s. 721.07, F.S.; specifying additional information |
| 13 | required in certain public offering statements for |
| 14 | timeshare plans; amending s. 721.20, F.S.; requiring |
| 15 | resale service providers to provide certain fee or cost |
| 16 | and listings information to timeshare interest owners; |
| 17 | specifying that failure to disclose constitutes an unfair |
| 18 | and deceptive trade practice; providing that certain |
| 19 | contracts are void and purchasers are entitled to refunds |
| 20 | of certain moneys; providing severability; providing an |
| 21 | effective date. |
| 22 |
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| 23 | Be It Enacted by the Legislature of the State of Florida: |
| 24 |
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| 25 | Section 1. Paragraph (a) of subsection (3) of section |
| 26 | 125.0104, Florida Statutes, is amended to read: |
| 27 | 125.0104 Tourist development tax; procedure for levying; |
| 28 | authorized uses; referendum; enforcement.-- |
| 29 | (3) TAXABLE PRIVILEGES; EXEMPTIONS; LEVY; RATE.-- |
| 30 | (a)1. It is declared to be the intent of the Legislature |
| 31 | that every person who rents, leases, or lets for consideration |
| 32 | any living quarters or accommodations in any hotel, apartment |
| 33 | hotel, motel, resort motel, apartment, apartment motel, |
| 34 | roominghouse, mobile home park, recreational vehicle park, or |
| 35 | condominium, or timeshare resort for a term of 6 months or less |
| 36 | is exercising a privilege which is subject to taxation under |
| 37 | this section, unless such person rents, leases, or lets for |
| 38 | consideration any living quarters or accommodations which are |
| 39 | exempt according to the provisions of chapter 212. |
| 40 | 2.a. Tax shall be due on the consideration paid for |
| 41 | occupancy in the county pursuant to a regulated short-term |
| 42 | product, as defined in s. 721.05, or occupancy in the county |
| 43 | pursuant to a product that would be deemed a regulated short- |
| 44 | term product if the agreement to purchase the short-term right |
| 45 | were executed in this state. Such tax shall be collected on the |
| 46 | last day of occupancy within the county unless such |
| 47 | consideration is applied to the purchase of a timeshare estate. |
| 48 | The occupancy of an accommodation of a timeshare resort pursuant |
| 49 | to a timeshare plan, a multisite timeshare plan, or an exchange |
| 50 | transaction in an exchange program, as defined in s. 721.05, by |
| 51 | the owner of a timeshare interest or such owner's guest, which |
| 52 | guest is not paying monetary consideration to the owner or to a |
| 53 | third party for the benefit of the owner, is not a privilege |
| 54 | subject to taxation under this section. A membership or |
| 55 | transaction fee paid by a timeshare owner that does not provide |
| 56 | the timeshare owner with the right to occupy any specific |
| 57 | timeshare unit but merely provides the timeshare owner with the |
| 58 | opportunity to exchange a timeshare interest through an exchange |
| 59 | program is a service charge and not subject to taxation under |
| 60 | this section. |
| 61 | b. Consideration paid for the purchase of a timeshare |
| 62 | license in a timeshare plan, as defined in s. 721.05, is rent |
| 63 | subject to taxation under this section. |
| 64 | Section 2. Paragraph (b) of subsection (1) of section |
| 65 | 125.0108, Florida Statutes, is amended to read: |
| 66 | 125.0108 Areas of critical state concern; tourist impact |
| 67 | tax.-- |
| 68 | (1) |
| 69 | (b)1. It is declared to be the intent of the Legislature |
| 70 | that every person who rents, leases, or lets for consideration |
| 71 | any living quarters or accommodations in any hotel, apartment |
| 72 | hotel, motel, resort motel, apartment, apartment motel, |
| 73 | roominghouse, mobile home park, recreational vehicle park, or |
| 74 | condominium, or timeshare resort for a term of 6 months or less, |
| 75 | unless such establishment is exempt from the tax imposed by s. |
| 76 | 212.03, is exercising a taxable privilege on the proceeds |
| 77 | therefrom under this section. |
| 78 | 2.a. Tax shall be due on the consideration paid for |
| 79 | occupancy in the county pursuant to a regulated short-term |
| 80 | product, as defined in s. 721.05, or occupancy in the county |
| 81 | pursuant to a product that would be deemed a regulated short- |
| 82 | term product if the agreement to purchase the short-term right |
| 83 | were executed in this state. Such tax shall be collected on the |
| 84 | last day of occupancy within the county unless such |
| 85 | consideration is applied to the purchase of a timeshare estate. |
| 86 | The occupancy of an accommodation of a timeshare resort pursuant |
| 87 | to a timeshare plan, a multisite timeshare plan, or an exchange |
| 88 | transaction in an exchange program, as defined in s. 721.05, by |
| 89 | the owner of a timeshare interest or such owner's guest, which |
| 90 | guest is not paying monetary consideration to the owner or to a |
| 91 | third party for the benefit of the owner, is not a privilege |
| 92 | subject to taxation under this section. A membership or |
| 93 | transaction fee paid by a timeshare owner that does not provide |
| 94 | the timeshare owner with the right to occupy any specific |
| 95 | timeshare unit but merely provides the timeshare owner with the |
| 96 | opportunity to exchange a timeshare interest through an exchange |
| 97 | program is a service charge and not subject to taxation under |
| 98 | this section. |
| 99 | b. Consideration paid for the purchase of a timeshare |
| 100 | license in a timeshare plan, as defined in s. 721.05, is rent |
| 101 | subject to taxation under this section. |
| 102 | Section 3. Subsection (1) of section 212.03, Florida |
| 103 | Statutes, is amended to read: |
| 104 | 212.03 Transient rentals tax; rate, procedure, |
| 105 | enforcement, exemptions.-- |
| 106 | (1)(a) It is hereby declared to be the legislative intent |
| 107 | that every person is exercising a taxable privilege who engages |
| 108 | in the business of renting, leasing, letting, or granting a |
| 109 | license to use any living quarters or sleeping or housekeeping |
| 110 | accommodations in, from, or a part of, or in connection with any |
| 111 | hotel, apartment house, roominghouse, or tourist or trailer |
| 112 | camp, mobile home park, recreational vehicle park, condominium, |
| 113 | or timeshare resort. However, any person who rents, leases, |
| 114 | lets, or grants a license to others to use, occupy, or enter |
| 115 | upon any living quarters or sleeping or housekeeping |
| 116 | accommodations in any apartment house houses, roominghouse |
| 117 | roominghouses, tourist camp camps, or trailer camp camps, mobile |
| 118 | home park, recreational vehicle park, condominium, or timeshare |
| 119 | resort and who exclusively enters into a bona fide written |
| 120 | agreement for continuous residence for longer than 6 months in |
| 121 | duration at such property is not exercising a taxable privilege. |
| 122 | For the exercise of such taxable privilege, a tax is hereby |
| 123 | levied in an amount equal to 6 percent of and on the total |
| 124 | rental charged for such living quarters or sleeping or |
| 125 | housekeeping accommodations by the person charging or collecting |
| 126 | the rental. Such tax shall apply to hotels, apartment houses, |
| 127 | roominghouses, or tourist or trailer camps, mobile home parks, |
| 128 | recreational vehicle parks, condominiums, or timeshare resorts, |
| 129 | whether or not these facilities have there is in connection with |
| 130 | any of the same any dining rooms, cafes, or other places where |
| 131 | meals or lunches are sold or served to guests. |
| 132 | (b)1. Tax shall be due on the consideration paid for |
| 133 | occupancy in the county pursuant to a regulated short-term |
| 134 | product, as defined in s. 721.05, or occupancy in the county |
| 135 | pursuant to a product that would be deemed a regulated short- |
| 136 | term product if the agreement to purchase the short-term right |
| 137 | were executed in this state. Such tax shall be collected on the |
| 138 | last day of occupancy within the county unless such |
| 139 | consideration is applied to the purchase of a timeshare estate. |
| 140 | The occupancy of an accommodation of a timeshare resort pursuant |
| 141 | to a timeshare plan, a multisite timeshare plan, or an exchange |
| 142 | transaction in an exchange program, as defined in s. 721.05, by |
| 143 | the owner of a timeshare interest or such owner's guest, which |
| 144 | guest is not paying monetary consideration to the owner or to a |
| 145 | third party for the benefit of the owner, is not a privilege |
| 146 | subject to taxation under this section. A membership or |
| 147 | transaction fee paid by a timeshare owner that does not provide |
| 148 | the timeshare owner with the right to occupy any specific |
| 149 | timeshare unit but merely provides the timeshare owner with the |
| 150 | opportunity to exchange a timeshare interest through an exchange |
| 151 | program is a service charge and not subject to taxation under |
| 152 | this section. |
| 153 | 2. Consideration paid for the purchase of a timeshare |
| 154 | license in a timeshare plan, as defined in s. 721.05, is rent |
| 155 | subject to taxation under this section. |
| 156 | Section 4. Paragraph (a) of subsection (3) of section |
| 157 | 212.0305, Florida Statutes, is amended to read: |
| 158 | 212.0305 Convention development taxes; intent; |
| 159 | administration; authorization; use of proceeds.-- |
| 160 | (3) APPLICATION; ADMINISTRATION; PENALTIES.-- |
| 161 | (a)1. The convention development tax on transient rentals |
| 162 | imposed by the governing body of any county authorized to so |
| 163 | levy shall apply to the amount of any payment made by any person |
| 164 | to rent, lease, or use for a period of 6 months or less any |
| 165 | living quarters or accommodations in a hotel, apartment hotel, |
| 166 | motel, resort motel, apartment, apartment motel, roominghouse, |
| 167 | tourist or trailer camp, mobile home park, recreational vehicle |
| 168 | park, or condominium, or timeshare resort. When receipt of |
| 169 | consideration is by way of property other than money, the tax |
| 170 | shall be levied and imposed on the fair market value of such |
| 171 | nonmonetary consideration. Any payment made by a person to rent, |
| 172 | lease, or use any living quarters or accommodations which are |
| 173 | exempt from the tax imposed under s. 212.03 shall likewise be |
| 174 | exempt from any tax imposed under this section. |
| 175 | 2.a. Tax shall be due on the consideration paid for |
| 176 | occupancy in the county pursuant to a regulated short-term |
| 177 | product, as defined in s. 721.05, or occupancy in the county |
| 178 | pursuant to a product that would be deemed a regulated short- |
| 179 | term product if the agreement to purchase the short-term right |
| 180 | were executed in this state. Such tax shall be collected on the |
| 181 | last day of occupancy within the county unless such |
| 182 | consideration is applied to the purchase of a timeshare estate. |
| 183 | The occupancy of an accommodation of a timeshare resort pursuant |
| 184 | to a timeshare plan, a multisite timeshare plan, or an exchange |
| 185 | transaction in an exchange program, as defined in s. 721.05, by |
| 186 | the owner of a timeshare interest or such owner's guest, which |
| 187 | guest is not paying monetary consideration to the owner or to a |
| 188 | third party for the benefit of the owner, is not a privilege |
| 189 | subject to taxation under this section. A membership or |
| 190 | transaction fee paid by a timeshare owner that does not provide |
| 191 | the timeshare owner with the right to occupy any specific |
| 192 | timeshare unit but merely provides the timeshare owner with the |
| 193 | opportunity to exchange a timeshare interest through an exchange |
| 194 | program is a service charge and not subject to taxation under |
| 195 | this section. |
| 196 | b. Consideration paid for the purchase of a timeshare |
| 197 | license in a timeshare plan, as defined in s. 721.05, is rent |
| 198 | subject to taxation under this section. |
| 199 | Section 5. The amendments to sections 125.0104, 125.0108, |
| 200 | 212.03, and 212.0305, Florida Statutes, made by this act are |
| 201 | intended to be clarifying and remedial in nature and do not |
| 202 | provide a basis for assessments of tax, or refunds of tax, for |
| 203 | periods prior to July 1, 2009. |
| 204 | Section 6. Paragraph (r) of subsection (1) of section |
| 205 | 624.605, Florida Statutes, is amended to read: |
| 206 | 624.605 "Casualty insurance" defined.-- |
| 207 | (1) "Casualty insurance" includes: |
| 208 | (r) Insurance for debt cancellation products.--Insurance |
| 209 | that a creditor may purchase against the risk of financial loss |
| 210 | from the use of debt cancellation products with consumer loans |
| 211 | or leases or retail installment contracts. Insurance for debt |
| 212 | cancellation products is not liability insurance but shall be |
| 213 | considered credit insurance only for the purposes of s. |
| 214 | 631.52(4). |
| 215 | 1. For purposes of this paragraph, the term "debt |
| 216 | cancellation products" means loan, lease, or retail installment |
| 217 | contract terms, or modifications to loan, lease, or retail |
| 218 | installment contracts, under which a creditor agrees to cancel |
| 219 | or suspend all or part of a customer's obligation to make |
| 220 | payments upon the occurrence of specified events and includes, |
| 221 | but is not limited to, debt cancellation contracts, debt |
| 222 | suspension agreements, and guaranteed asset protection |
| 223 | contracts. However, the term "debt cancellation products" does |
| 224 | not include title insurance as defined in s. 624.608. |
| 225 | 2. Debt cancellation products may be offered by financial |
| 226 | institutions, as defined in s. 655.005(1)(h), insured depository |
| 227 | institutions as defined in 12 U.S.C. s. 1813(c), and |
| 228 | subsidiaries of such institutions, as provided in the financial |
| 229 | institutions codes; by sellers as defined in s. 721.05, or by |
| 230 | the parents, subsidiaries, or affiliated entities of sellers, in |
| 231 | connection with the sale of timeshare interests;, or by other |
| 232 | business entities as may be specifically authorized by law, and |
| 233 | such products shall not constitute insurance for purposes of the |
| 234 | Florida Insurance Code. |
| 235 | Section 7. Subsection (17) of section 721.05, Florida |
| 236 | Statutes, is amended to read: |
| 237 | 721.05 Definitions.--As used in this chapter, the term: |
| 238 | (17) "Facility" means any permanent amenity, including any |
| 239 | structure, furnishing, fixture, equipment, service, improvement, |
| 240 | or real or personal property, improved or unimproved, other than |
| 241 | an accommodation of the timeshare plan, which is made available |
| 242 | to the purchasers of a timeshare plan. The term does not include |
| 243 | an incidental benefit as defined in this section. |
| 244 | Section 8. Paragraph (ii) is added to subsection (5) of |
| 245 | section 721.07, Florida Statutes, to read: |
| 246 | 721.07 Public offering statement.--Prior to offering any |
| 247 | timeshare plan, the developer must submit a filed public |
| 248 | offering statement to the division for approval as prescribed by |
| 249 | s. 721.03, s. 721.55, or this section. Until the division |
| 250 | approves such filing, any contract regarding the sale of that |
| 251 | timeshare plan is subject to cancellation by the purchaser |
| 252 | pursuant to s. 721.10. |
| 253 | (5) Every filed public offering statement for a timeshare |
| 254 | plan which is not a multisite timeshare plan shall contain the |
| 255 | information required by this subsection. The division is |
| 256 | authorized to provide by rule the method by which a developer |
| 257 | must provide such information to the division. |
| 258 | (ii) A statement that the owner's obligation to pay |
| 259 | assessments continues for as long as he or she owns the |
| 260 | timeshare interest and that when a person inherits a timeshare |
| 261 | interest, that person is responsible for paying those |
| 262 | assessments. |
| 263 | Section 9. Subsection (9) is added to section 721.20, |
| 264 | Florida Statutes, to read: |
| 265 | 721.20 Licensing requirements; suspension or revocation of |
| 266 | license; exceptions to applicability; collection of advance fees |
| 267 | for listings unlawful.-- |
| 268 | (9)(a) Prior to listing or advertising a timeshare |
| 269 | interest for resale, a resale service provider shall provide to |
| 270 | the timeshare interest owner a description of any fees or costs |
| 271 | relating to the advertising, listing, or sale of the timeshare |
| 272 | interest that the timeshare interest owner, or any other person, |
| 273 | must pay to the resale service provider or any third party, when |
| 274 | such fees or costs are due, and the ratio or percentage of the |
| 275 | number of listings of timeshare interests for sale versus the |
| 276 | number of timeshare interests sold by the resale service |
| 277 | provider for each of the previous 2 calendar years. |
| 278 | (b) Failure to disclose this information in writing |
| 279 | constitutes an unfair and deceptive trade practice pursuant to |
| 280 | chapter 501. Any contract entered into in violation of this |
| 281 | subsection is void and the purchaser is entitled to a full |
| 282 | refund of any moneys paid to the resale service provider. |
| 283 | Section 10. If any provision of this act or the |
| 284 | application thereof to any person or circumstance is held |
| 285 | invalid, the invalidity does not affect other provisions or |
| 286 | applications of the act which can be given effect without the |
| 287 | invalid provision or application, and to this end the provisions |
| 288 | of this act are declared severable. |
| 289 | Section 11. This act shall take effect July 1, 2009. |