Member dues cover property tax?

It's included as a line item on the annual dues. Because it is estimated there is always a true up on the next year's annual dues - either a credit it it was over estimated or a charge if under estimated.
 
And when people talk about there being limits on how much dues can increase in a year, those limits exclude property tax. Property tax follows actual assessment.
 
And when people talk about there being limits on how much dues can increase in a year, those limits exclude property tax. Property tax follows actual assessment.
Plus as proven a few years ago, there really are no limits on increases of dues or reallocation other than the limit per year. So it could go up the limit every year if needed to hit a goal or like the reallocation, they just spread it over 2 years to stay within the 10%/yr limit.
 


Property taxes are a part of the annual dues calculations. Annual dues cover a number of items - maintenance, member services, capital expense, transportation, property tax and a few other things.
Thanks, we are thinking of buying. The rep did not mention property taxes.
 


It's worth noting that when they talk about dues increases being capped to a max increase each year, they mean the non-tax elements. If property tax goes way up, they can assign the actual increase to dues, regardless of percentage increase.
 
It's worth noting that when they talk about dues increases being capped to a max increase each year, they mean the non-tax elements. If property tax goes way up, they can assign the actual increase to dues, regardless of percentage increase.

This is a bit scary for us because our home's property taxes have almost doubled in the last 5 or so years. We were paying about 8k in 2012, now about 14k. So it can happen that they go through the roof. Ugh. Still kind of want to do it though.
 
Wow, so this is in addition to dues?
It's rolled in to the current calculations but members pay for them regardless. There is also the possibility of a special assessment in addition to the dues.
 
This is a bit scary for us because our home's property taxes have almost doubled in the last 5 or so years. We were paying about 8k in 2012, now about 14k. So it can happen that they go through the roof. Ugh. Still kind of want to do it though.
If DVC makes sense otherwise (use at DVC resorts, plan 7-11 mo out, OK with the compromises of a timeshare, afford it (to me that's pay cash and really no other consumer debt) and you're sufficiently educated on the situation and processes, I wouldn't let the risk of dues increasing be a deal breaker. However, for one who's stretching to buy, they really shouldn't buy anyway. Just look at it as wasted money and assume dues will go up at 3-4% per year and the risks otherwise from a DVC standpoint should be OK.
 
This is a bit scary for us because our home's property taxes have almost doubled in the last 5 or so years. We were paying about 8k in 2012, now about 14k. So it can happen that they go through the roof. Ugh. Still kind of want to do it though.

Our dues cover a teensy percentage of the whole place. Property taxes are a part of the dues. This isn’t something to scare a person off.


But wait until “kind of want to do it”
is “I know as much as I possibly can about the ins and outs, have run the numbers a few different ways, and KNOW that Dvc is beneficial to my family's needs and wants.”
 
Thanks, we are thinking of buying. The rep did not mention property taxes.

DVC dues pays for everything, electricity, security, administration fees, front desk, new roof, painting the buildings, pool maintenance, insurance, water, cable, housekeeping, new carpet and furnishings and property tax. That is why DVC has so many resorts and why Disney considers DVC a cash cow, they build a resort, buyers pay for the construction and all costs from that point forward. Plus the owners now are locked in to using their points each year for a Disney vacation that brings Disney millions and millions of dollars.

:earsboy: Bill

 
DVC dues pays for everything, electricity, security, administration fees, front desk, new roof, painting the buildings, pool maintenance, insurance, water, cable, housekeeping, new carpet and furnishings and property tax. That is why DVC has so many resorts and why Disney considers DVC a cash cow, they build a resort, buyers pay for the construction and all costs from that point forward. Plus the owners now are locked in to using their points each year for a Disney vacation that brings Disney millions and millions of dollars.

:earsboy: Bill
... And parking, which is why they don't charge the daily fee because you're already paying for maintenance of the parking lot in dues. So while it seems like a "perk", it's actually never been free for DVC owners all along.
 
Keep in mind that any big property tax increase will also pass through in cash rates.

That's a good point.

Just started wondering... is it ever possible that dvc property would be assessed significantly higher than regular hotel property? Like I am sure Disney protests big property tax increases, but do they do that for DVc property? I guess you are best off buying in Florida over CA or HI. Disney seems to have more sway in Florida.
 
That's a good point.

Just started wondering... is it ever possible that dvc property would be assessed significantly higher than regular hotel property? Like I am sure Disney protests big property tax increases, but do they do that for DVc property? I guess you are best off buying in Florida over CA or HI. Disney seems to have more sway in Florida.
They have been protesting DVC assessments.
 
That's a good point.

Just started wondering... is it ever possible that dvc property would be assessed significantly higher than regular hotel property? Like I am sure Disney protests big property tax increases, but do they do that for DVc property? I guess you are best off buying in Florida over CA or HI. Disney seems to have more sway in Florida.

The land value, which contributes to the property tax assessment, is much lower in WDW (otherwise useless swampland) than Anaheim (prime retail/residential filled with hotels and shops). Disney protested assessments that included income generated. They argued that the high income is a product of their IP, and they should be assess on the physical buildings and land, plus average income of non-disney properties in the vicinity.
 
I agree with others that dues shouldn’t be a reason to not jump on board if you can afford it. Yes you will pay them, and yes you will be paying a higher amount each year, but it’s typically only 3-4%.

An important thing to consider is that the Mouse owns at least 2% of every DVC property (some more if they are sitting on a lot of ROFR contracts), so they are just as responsible for paying for dues on their points as well. Might not seem like much in the grand scheme but it essentially makes them the largest individual shareholders at each property and dues impact their bottom line as well.
 

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