WASHINGTON--(BUSINESS WIRE)--On a critical tax issue that ARDA-Resort Owners' Coalition (ARDA-ROC) intervened in on behalf of timeshare owners, filing amicus briefs in support of two appeals to the Administrative Appeals Commission (AAC), the AAC reversed the Tennessee Board of Equalization and ruled that timeshare properties “are, and should be classified as, residential, rather than commercial and industrial.” As a result of the ruling, timeshare owners in the area will now be appropriately assessed at the residential property tax rate of 25% of the assessed value of the property, rather than the substantially higher commercial rate of 40%.
The shift in policy to a commercial classification by the tax assessor in Sevier County, where most timeshare resorts are located, began in 2016 following the Gatlinburg wildfires. ARDA-ROC pointed out in its briefs that the move was a clear departure from, and contrary to, well-established and long-standing Tennessee's property tax guidance and further contrary to clear policy decisions of the Tennessee General Assembly related to the treatment of Tennessee timeshare properties.
“We’re glad to see that fairness and consistency was maintained here in the application of the state’s tax law,” said Elizabeth Baker, Vice President of State Legislative/Regulatory Official Outreach and of ARDA-ROC. “ARDA-ROC has a strong interest in maintaining certainty and predictability in the fair, just and consistent application of the Tennessee property tax law, especially as those rules relate to timeshare owners.”
“As the first line of defense against legislation or issues that may negatively impact timeshare owners and their well-being, ARDA-ROC brought an important perspective to this case. We will continue to do all that we can to support and fight on behalf of timeshare owners,” concluded Baker.
Following unfair rulings on May 1, 2020, that asserted that the county fairly assessed timeshare properties at Crown Park Resort and Laurel Crest Resort as commercial, the two resorts appealed the decisions to the AAC on May 26, 2020. ARDA-ROC intervened and filed amicus briefs in support of timeshare owners in both appeal cases. Hearings took place in December 2020, with the State Board of Equalization issuing their final orders on February 5, 2021.
ARDA-ROC is a 501(c)4 non-profit entity funded by over 1.6 million individual timeshare owner's voluntary contributions. ARDA-ROC is dedicated to preserving, protecting, and enhancing vacation ownership through smart policy and sensible regulation. ARDA-ROC advocates for local, state, and federal policies that enable the vacation ownership industry to thrive and provide consumers with an enriched vacation ownership experience. For more information, visit ARDAROC.org.
