Sec. 4. Application. This Act applies to taxes assessed based on the status of property on or after April 1, 2006.

SUMMARY

This bill clarifies and simplifies the assessment and collection of real estate taxes on time-share estates. The bill provides that, although each time-share estate constitutes a separate estate in real property, tax assessments of time-share estates must be based on the real estate value of the unit of which the time-share estates are a part and must be calculated in the same manner as if the unit were a residential condominium unit owned by a single taxpayer. The tax obligation is then divided proportionately among the time-share owners based on the instruments governing the time-share property.

This bill also requires municipalities to bill the managing entity of the time-share property as agent for the time-share owners for tax assessments on their time-share estates. The managing entity must collect the taxes paid by the time-share owners and place the money into an escrow account. The money in the account is then paid to the municipality. The managing entity is required to certify to the municipality the names of time-share owners who fail to pay their real estate taxes. The municipality may place a tax lien on the time-share estate of any delinquent time-share owner.