§ 33 §593 — Taxation of time-share estates

Notwithstanding the provisions of sections 579 and 580, taxation of time-share estates shall be determined according to this section.
1.
Creation of estates.
Notwithstanding any contrary rule of common law, a grant of an estate in a unit conferring the right of possession during a potentially infinite number of separated time periods creates an estate in fee simple having the character and incidents of such an estate at common law, and a grant of an estate in a unit conferring the right of possession during 3 or more separated time periods over a finite number of years equal to 3 or more, including renewal options, creates an estate for years having the character and incidents of such an estate at common law.
2.
Time-share estates as separate estates.
Each time-share estate constitutes for all purposes a separate estate in real property. Each time-share estate must be separately assessed and taxed. In addition to other factors relevant to the valuation of a time-share estate considered by the assessor, the assessor may consider the real property value of the time-share estate declared in the declaration of value, if any, submitted under Title 36, section 4641‑D. The filing and discharge of tax liens on more than one time-share estate owned by the same person are governed by Title 36, section 942‑A.
3.
Recordation.
A document transferring or encumbering a time-share estate may not be rejected for recordation because of the nature or duration of that estate.
4.
Collection and receipt of money for taxes; tax bills.
The managing entity may collect and receive money from time-share estate owners for the purpose of paying taxes assessed on time-share estates.
5.
Escrow account.
If the managing entity collects money for taxes, it shall maintain an escrow account with a financial institution licensed by the State, and deposit any money collected or received for taxes in the escrow account within 10 days after collection or receipt. The escrow account must be established in the names of both the managing entity and the municipality in which the time-share estates are located. No withdrawal may be made from the escrow account without the written agreement of the municipality.
6.
Unorganized territory.
Time-share estates in the unorganized territory must be taxed according to the provisions of this section, and the State Tax Assessor has all the rights and obligations applicable to a municipality or municipal officers.
7.
Effect of foreclosure.
A governmental entity that acquires ownership of a time-share estate for reasons of tax delinquency, including, but not limited to, the automatic foreclosure of a tax lien, may not be required to pay for the share of common expenses attributable to the time-share estate during the period the governmental entity owns the time-share estate if the governmental entity does not use the time-share estate. Use by a governmental entity includes, without limitation, leasing or renting the time-share estate. Any unpaid common expenses attributable to the time-share estate accruing during the period of ownership of the time-share estate by the governmental entity may be charged by the owners' association or managing entity to the purchaser of a foreclosed time-share estate when the purchaser acquires title to the unit from the governmental entity. The governmental entity shall disclose in writing to a prospective purchaser of the time-share estate that the purchaser may be charged for the common expenses attributable to the time-share estate accruing during the period of the governmental entity's ownership.

Legislative History

PL 1983, c. 407, §1 (NEW). PL 1987, c. 358, §§1,2 (AMD). PL 1991, c. 197, §§1,2 (AMD). PL 2003, c. 229, §1 (AMD). PL 2005, c. 275, §1 (AMD). PL 2005, c. 275, §2 (AFF). PL 2005, c. 607, §§1,2 (AMD). PL 2005, c. 607, §3 (AFF). RR 2011, c. 2, §36 (COR).