"Sales tax" savings

[XGrumpy1]

I have been on a sales trip and stayed at several motels. They each had the base price, then "city" tax, "state" tax, "occupancy" tax, totaling about 20% usually.

I had never figured this tax into the DVC savings over getting rooms through Disney reservations system. At 20% it seems to make DVC a much better value.

Does any one know how much tax Disney has to charge?

 

[MinnieVanMom]

I know at the value resort it is 12.5% tax. What kind of tax and where it goes I don't know. You can price it out on the regular Disney site and make a room ressie to see what the taxes will be.

 

[drusba]

For WDW resorts the total tax, combined state and local, sales and occupancy, is 12.5% except for All-Stars for which it is 13%. The higher percentage for All-Stars results from its being in a different county, Osceola, than the other resorts, Orange.

 

[XGrumpy1]

So every time I stay at a DVC resort, either on points or renting from a member I am saving 12.5% to 13% in taxes I do not pay - pretty sweet!

 

[SmilingGrump]

Yep! One of the things that helped me convince my DW we should buy in

 

[drusba]

So every time I stay at a DVC resort, either on points or renting from a member I am saving 12.5% to 13% in taxes I do not pay - pretty sweet!

You may do so if renting from a member but the actual law is that anyone renting a room, even a member, is supposed to collect from the tenant and pay to the govenment agencies the required tax. That is one of those rules almost universally violated by individual timeshare owners who rent.

 

[Plutofan]

I have been on a sales trip and stayed at several motels. They each had the base price, then "city" tax, "state" tax, "occupancy" tax, totaling about 20% usually.

I had never figured this tax into the DVC savings over getting rooms through Disney reservations system. At 20% it seems to make DVC a much better value.

Does any one know how much tax Disney has to charge?

The tax is 12.5% for most since they are usually in Orange County.

 

[Plutofan]

You may do so if renting from a member but the actual law is that anyone renting a room, even a member, is supposed to collect from the tenant and pay to the govenment agencies the required tax. That is one of those rules almost universally violated by individual timeshare owners who rent.

You are correct that timeshare rentals are subject to the rental tax even if you rent DVC points. Disney even charges us owners the 12.5% rental tax when you rent extra points from them and we are DVC owners.

 

[Mtnman44]

It's an important consideration when comparing a cash stay vs. DVC ownership. However, keep in mind that you do pay property taxes on your points. If you calculate what 12.5% tax would be on a theoretical one week stay vs. the property tax on points used for that same stay, I'm guessing that either tax is in the same ballpark....roughly. So you are still paying taxes on your lodging, just via a different route.

I have been on a sales trip and stayed at several motels. They each had the base price, then "city" tax, "state" tax, "occupancy" tax, totaling about 20% usually.

I had never figured this tax into the DVC savings over getting rooms through Disney reservations system. At 20% it seems to make DVC a much better value.

Does any one know how much tax Disney has to charge?

 

[mj2vacation]

It's an important consideration when comparing a cash stay vs. DVC ownership. However, keep in mind that you do pay property taxes on your points. If you calculate what 12.5% tax would be on a theoretical one week stay vs. the property tax on points used for that same stay, I'm guessing that either tax is in the same ballpark....roughly. So you are still paying taxes on your lodging, just via a different route.

For a 10 night stay in October at akv, we would spend $154 in property taxes ($0.94 p/p already in dues), vs $60 p/n in occupancy taxes, or $600 just in room tax. $5400 for the rooms vs 164 points. I love my points.

We also write off that part of our dues, so it is good all around! Every little bit helps.

 

[wildernessDad]

Yeah, and "that" tax is not tax deductible.

 

[Mtnman44]

The difference is more than I thought! wow. However it seems that using the full rack rate is probably an exaggeration of reality. I wonder how often Disney gets nearly $500 per night for a DVC studio.

For a 10 night stay in October at akv, we would spend $154 in property taxes ($0.94 p/p already in dues), vs $60 p/n in occupancy taxes, or $600 just in room tax. $5400 for the rooms vs 164 points. I love my points.

We also write off that part of our dues, so it is good all around! Every little bit helps.

 

[XGrumpy1]

With "free" dining it seems like you do generally pay close to full rack rate. Then they give you "free" dining and tax you on the full rack rate at 12.5%

If you just got a discount on the room you pay less tax on your meals!

 

[mj2vacation]

The difference is more than I thought! wow. However it seems that using the full rack rate is probably an exaggeration of reality. I wonder how often Disney gets nearly $500 per night for a DVC studio.

Probably more than you think. I pull the rates off of disneyworld.com anytime that we stay, and more often than not, they are that high.

Most of the year is pretty well rack, with the exception of bounce back rates etc which are targeted. It amazes me that so many people do pay so much, but that is why I have points. I am too cheap!

 

[dianeschlicht]

So every time I stay at a DVC resort, either on points or renting from a member I am saving 12.5% to 13% in taxes I do not pay - pretty sweet!

True, but not completely. Remember that you are paying real estate tax of some sort on your ownership.

 

[makthompson]

Disney usually charges 16% for the resort tax

 

[YourEveryDayAdam]

True, but not completely. Remember that you are paying real estate tax of some sort on your ownership.

One thing to keep in mind is that Disney pays the same property tax that we members pay on the resorts that Disney owns. Disney would have to pass the property tax cost through in the rates that it charges to it's guests.

So while there is no specific line item on a hotel bill that lists out what a hotel guest pays for the property taxes, the cost is there. If the government were you raise the property taxes, then Disney would have to raise their rates to cover the extra cost.