(a) With respect to any timeshare association for a timeshare plan created after the date this chapter is enacted, the timeshare association shall collect taxes and other fees assessed and billed by the Tax Assessor as agent for all owners of timeshare interests and shall remit all taxes collected to the Tax Collector. As more specifically described in regulations adopted by the Virgin Islands Office of the Tax Assessor, the timeshare association has the option of (i) remitting only taxes and other fees actually collected, in which case the Tax Collector shall have a tax lien on the delinquent timeshare interests pursuant to 33 V.I.C. § 2331, or (ii) paying 100 percent of all taxes and other fees assessed, in which case a tax lien in the name of the timeshare association attaches to the delinquent timeshare interests pursuant to 33 V.I.C. § 2332. The liability for taxes remains the responsibility of each individual owner and not the timeshare association, except for any property owned by the timeshare association. The right to contest or appeal any assessments or fees applies to the timeshare owner, except for any property owned by the timeshare association. In the case where a timeshare association elects option (ii), the timeshare association may contest or appeal the assessment.
(b) Notwithstanding the foregoing, for timeshare plans in which purchasers of timeshare interests own a timeshare use, the Tax Collector shall assess the real property and improvements constituting the timeshare use plan and bill the owner of record of such real property and improvements. The owner of record of such timeshare use property is liable for the tax and shall remit to the Tax Collector the amount for all taxes assessed, and has the obligation to collect any and all taxes paid by such record owner from the owners of timeshare interests in the timeshare use plan.
(c) Notwithstanding anything to the contrary contained in the governing documents of any existing timeshare association, a timeshare association may adopt any rules and regulations necessary to comply with this section and the regulations adopted by the Virgin Islands Office of the Tax Assessor; and the association’s rules must include the manner in which billed taxes and other fees are allocated among the various timeshare interests in the timeshare plan.
(d) Any timeshare association for a timeshare plan created prior to the date this chapter is enacted may elect to collect taxes or other fees on behalf of owners pursuant to subsection (a). In which case, the timeshare association shall have responsibility or liability for any taxes owed for up to three (3) years prior to the time that such election is made. The Tax Collector shall have a lien against the delinquent individual timeshare interest for any outstanding taxes and other fees still owing after the date of election, subject to subsection (e). In the event, and to any extent, a timeshare association for a timeshare plan created prior to the date this chapter is enacted does not elect to collect taxes or other fees on behalf of owners pursuant to subsection (a), taxes and other fees must continue to be assessed, billed, and collected in the same manner as done prior to the date this chapter was enacted.
(e) With respect to any delinquent taxes and other fees assessed to any timeshare interest for the year 2019 and prior years, upon the resale or other conveyance of such timeshare interest, the Tax Collector shall release its lien for such delinquent taxes and other fees encumbering the timeshare interest upon receipt by the Tax Collector of a payment equal to the lesser of either (i) the total amount of such delinquent taxes and other fees, exclusive of all accrued interest and penalties, or (ii) eighty percent (80%) of the resale proceeds paid for the timeshare interest by a bona fide third party. Upon such payment, such delinquent taxes and other fees, as well as all accrued interest and penalties thereon, are deemed to be paid in full and fully satisfied.